Portugal maintains leadership over Spain
Straight Talk: Portugal, my friend, is still kicking some serious ass in Europe – it's truly a beacon amongst the crowded continent – but it's also still got some bones to pick. Here's a lowdown on the good, the bad, and the ugly.
First, let's commence with the positive vibes. Portugal's jumpin' around like it's got some new threads on. It surpasses Spain and Italy like they ain't even there, all the way up to 25th in infrastructure – the best of the four factors analyzed. That's some fly gear if you ask me. You got good education grindin' out (21st), better optimization of basic infrastructure (16th vs. 33rd in 2024), and some science that'll make yer eyes pop (26th). Top that off with a stellar population growth and secondary school enrollment rate (both 2nd place), and you've got yourselves a recipe for success.
However, Portugal ain't all sunshine and rainbows. This economist Filipe Grilo from the Porto Business School does drop some harsh truths. Matter fact, he won't shut up about 'em. First off, we got this gargantuan tax burden that's chokin' the life outta businesses (1st complaint). Then there's this judicial system – slow as molasses in January (2nd complaint). And don't even get me started on company's inability to adequately train their workforce, or the brain drain that's tryin' to squeeze Portugal dry of its skilled labor (3rd complaint).
Now, the least you can do is lower the regulatory barriers and simplify customs procedures (4th complaint) so that businesses don't have to claw their way through red tape just to make a buck. And a declining productivity and efficiency? Come on, man, get your shit together!
So, Portugal may have some good infrastructure, but it can't seem to retain its skilled labor, and that's a real bummer. Overall, the country's business efficiency and economic performance are stumbling (3rd place in 2024), while economic growth remains stagnant due to these persistent structural challenges we've been harpin' on.
"The high tax burden, inefficient justice system, inadequate worker training, and brain drain are the recurring demons Portugal struggles with," Grilo says. "Despite knowing about these problems, Portugal still can’t seem to get ahead of them."
Taking a closer look at the other nations in the study, Portugal is maintaining its edge over Spain and Italy, but it's slippin' up against other countries that are improving more steadily in business efficiency and economic performance. I guess some good ol' fashioned hard work is in order for this country to maintain its status as an economic contender.
Sources:
1 - World Economic Forum Annual Report, 20242 - Swedish-Portuguese Chamber of Commerce Survey, 20233 - Organisation for Economic Co-operation and Development (OECD), 20234 - Eurostat Economic Data, 2023
Portugal's strong infrastructure ranking (25th) in the World Economic Forum's Annual Report of 2024 is a positive, yet the country faces challenges in terms of business efficiency. Specifically, high tax burdens, an inefficient justice system, inadequate worker training, and brain drain persistently hinder Portugal's economic growth.
Despite its competitive edge over Spain and Italy in business efficiency and economic performance, Portugal is slipping behind other improving nations, indicating that concerted efforts towards streamlining regulatory barriers, simplifying customs procedures, and addressing these recurring issues could strengthen Portugal's economic standing.
