Portugal: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2007 Issue 342

Publication date: October 2007

ISBN: 9781451832297

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Labor , Taxation - General , ISCR , CR , export , market share , rate , product , VAT rate increase , product market reform , further tax system reform , export rebound , export boom , Labor markets , Exports , Labor market flexibility , Tax administration core functions , Income tax systems , Global , Eastern Europe

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Summary

This Selected Issues paper analyzes Portugal’s export performance in 2006 and assesses whether it might augur a sustained recovery. The paper examines the factors underlying the recent export rebound, and searches for signs of fundamental changes in structures of the export industries during the last decade. It highlights the importance of labor market flexibility. Using a four-country version of the IMF Global Economic Model, the paper attempts to illustrate the benefits of labor market reform to help close the competitiveness gap.