“No recession next year” in Portugal
The head of government responded to the only deputy of the Book, Rui Tavares, in the debate in parliament on general policy. MP Livre asked António Costa if he could guarantee that in the event of a recession in 2023, the government “modifies its target for the share of wages in GDP”. [Gross Domestic Product]by revising upwards and increasing the wage share”.
In response, Costa said that “Portugal will continue to grow. On the contrary, the scenario we have is that Portugal will continue to grow, obviously at a slower pace than this year 2022, and that we will continue to converge with the European Union and we hope that this convergence will also take place with the convergence wages, and what is more, that wage growth will continue to support the growth of the Portuguese economy, as it has been since November 2015″, he underlined.
The prime minister said that “from 2015 to today, nominal GDP has grown by 20%” and that “this has been the country’s sustained growth trajectory”.
“Unfortunately, growth is not linear and even in 2020 and 2021 we have already exceeded the 48% share of wages in GDP, not because wages have increased, but because GDP has fallen. And so, it is not the trajectory, the trajectory is the growth of the share of wages in GDP in a scenario of convergence with the European Union”, he added.
Costa said that this scenario was presented “with all seriousness” in the electoral platform and was maintained in the government’s program but, he stressed, “obviously it must be adjusted in the face of reality”.