Portugal has received plenty of bad press over recent weeks. After the well-publicised financial problems facing Greece, many have claimed that the likes of Portugal and Ireland are set to follow suit as their economies continue to falter.
However, a recent report from the Office of Economic Co-Operation and Development (OECD) has stated that they are ‘confident’ that Portugal will weather its current financial problems.
Challenges to investor confidence
Portugal was hit particularly hard by the global financial crisis. However, the OECD report claims that this was ‘unfair in many ways’ considering that fact that ‘Portugal pushed through major economic reforms prior and during the crisis, including of labour markets and pensions.’
A lack of investor confidence in Portugal has also hit economic growth and house prices, which have fallen over the last couple of years.
However, the Portuguese government have agreed drastic and swift action to tackle the financial problems. This is intended to return the country to positive economic growth and to increase the number of British investors wanting to buy property.
Confident, courageous and appropriate
In his comments accompanying the report, OECD secretary-general Angel Gurria said: "I am confident Portugal will weather this crisis. The ambitious fiscal consolidation strategy must be backed by a strong political consensus which the country has in the past been able to achieve.”
The OECD report itself said: “The comprehensive, fiscal consolidation implemented by the government was courageous and appropriate. It signals the commitment over the coming years to bring public finances to a sustainable path. It is essential that the consolidation measures continue to be implemented swiftly. It is also important that they are well communicated to markets.”
So, as Portugal’s government continue to take the steps needed to reassure the markets, property prices will stabilise. Whilst there are plenty of British investors buying property in Portugal to take advantage of low prices, these steps can only help confidence in the country’s property market.
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Nick Marr
I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.