At the opening of the annual conference of the “Journal of Business”, which discusses this Friday the “growth paths” and “Trends in Europe, Banking and Economy”, António Horta Osório said that wages of Portuguese and Spanish registered an “improvement” of 30% compared to the Germans in the last eight years.
In the case, “improvement” is in relation to competitiveness, the resulting variations in real terms unfavorable to Portuguese workers.
According to the banker, CEO of Lloyds, this crisis was preceded by period of “unprecedented growth” that had based the increase in exports. “In about 30 years increased from 20% to 30% of GDP, which has enormous consequences for the increasing wealth of the countries,” he said.
“As in any family we have to live within our means. When low domestic demand this has a huge impact on unemployment. The solution is to increase exports, “he added.
Horta Osorio also stated that important to draw lessons from this crisis not to not to repeat the same mistakes in the future. “In the Portuguese case, in addition to the overall debt has gone from 270 to 340% of GDP, Portugal has a problem of particular concern because it has debt to the public and enterprise levels,” he said.
arguing that structural reforms, such as the IMF insists, are the way to economic recovery, Horta Osorio stressed that these should be directed mainly to improve the competitiveness and the correction of external imbalances.
António Horta Osório also pointed immigration as one of the possible paths to economic recovery, giving the example of Singapore. And defended the importance of taking lessons from this crisis not to not to repeat the same mistakes in the future, pointing to the importance of structural reforms.
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