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Portugal After a deep and long recession, the catch up in GDP per capita relative to the upper half of OECD countries has improved. Employment has been recovering strongly, but total factor productivity growth remains low and the income gap to the upper half of OECD countries remains large. Inequality remains high and the share of national disposable income held by the poorest 20% of the population is just below the OECD average. Greenhouse gas emissions, either relative to the size of the population or the size of the economy, are lower than the OECD average. Portugal has registered a reduction in the corporate debt burden in recent years, but the indebtedness level remains high, hampering a higher rate of economic growth. A plan has been outlined that aims to raise computer literacy and to increase the proportion of the population with internet access, but low levels of educational attainment in the workforce remains a challenge more generally. Initiatives aimed at improving innovation collaboration between the public and private sectors, including through the establishment of “collaborative laboratories”, are also underway. Improving the efficiency of the tax system should be a key priority given the need to reduce the stock of public debt. This includes reducing exemptions and special rates under the consumption tax and increasing the share of property taxes in the tax mix. The design of such reforms should ensure that the progressivity of the tax system is not eroded. Growth performance, inequality and environment indicators: Portugal A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
C. The gap in GDP per capita is narrowing slowly 2002-08 0.8 -0.3 0.3 -0.5 -0.1 1.2 1.5 -0.3 -0.1
2012-18 1.8 1.5 -0.1 1.6 0.0 0.2 -0.1 0.3 0.0
Gini coefficient Share of national disposable income held by the poorest 20%
GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
Per cent 0
-10
-20
B. Inequality and environment
3
Gap to the upper half of OECD countries5
Level
Annual variation (percentage points)
2016 33.1 (31.7)*
2013-16 -0.3 (0)*
7.3 (7.6)*
0.1 (0)*
2016 6 (10.9)* 0.2 (0.3)* 0.1
Average of levels 2010-16 5.6 (11.3)* 0.2 (0.3)* 0.1
-30
-40 GDP per capita
GDP per hour worked
-50
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933955275