What is the capitalism of the sardine, the method that caused the economic miracle of Portugal

What is the capitalism of the sardine, the method that caused the economic miracle of Portugal

February 1, 2025 – 17:00

This European country of just over 10 million inhabitants became an example of how to get out of an economic crisis.

Portugal It is one of the European countries that receives the most tourists per season, and recently His popularity grew Thanks to social networks, which promote their landscapes. The gastronomy and the beaches are surrounded by architecture loaded with history and culture.

However, this flourishing nation It was not always a dream place. Almost twenty years ago, the Portuguese crossed one of the stronger economic crises of the continent in recent times. However, thanks to a successful change of direction, the country recovered its color.

Portugal.webp

Of bankruptcy to economic success

After the Global Economic Crisis of 2008Portugal plunged into a deep depression. In 2011, on the verge of bankruptcy, the government requested a rescue of 78,000 million euros to the European Union institutions and the International Monetary Fund. This rescue was granted with the condition of implementing measures of public cuts.

During the following years, known as the years of the “Troika” Due to the impositions of the European Commission, the European Central Bank and the IMF, public spending was significantly cut, especially affecting the salaries of officials and pensions, and taxes were increased.

However, Unemployment continued to increasereaching a record of 17.7% in 2013. Poverty and social discontent also increased, while the consumption of the Portuguese collapsed.

After the reforms implemented by a center-right government under the supervision of the troika, Portugal He freed himself from international loans In June 2014. Despite this, the country was not in a position to celebrate much: the unemployment rate was 12%, the 20% of the population lived below the poverty threshold and 485,000 Portuguese had emigrated from the country between 2011 and 2014.

The change of government that aimed Portugal

After the 2015 elections, a new center -left government led by António Costawhich began to reverse the austerity measures, while maintaining the Fiscal responsibility. They started spending a little more, especially on wages, which had a multiplier effect on the economy. This moderate increase in spending resulted in a GDP increase and tax revenue.

The recovery became evident in 2017, when the Portuguese GDP grew 2.7%, the highest rate since the beginning of the new millennium, and the unemployment rate fell to precrisis levels.

Source: Ambito

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