According to data released today by Eurostat, the statistical agency of the European Union, Foreign Direct Investment (FDI) in Portugal fell by more than 50% in 2007. And this was so for FDI originating in other EU country-members as well as for FDI originating in countries outside the EU. FDI is investment made by foreign companies in Portugal (v.g., opening and expansion of subsidiaries of foreign companies in Portugal; purchase of Portuguese companies by foreign companies).
For the Portuguese people this means fewer jobs and a lower standard of living.
The data just released is a sign - I would say, a dramatic sign - of the loss of confidence of foreign companies in the Portuguese economy. Although there are no statistics discriminating the reasons that led to this outcome, I would consider the most important to be: high unit labour costs (that is, high wages and comparatively lower productivity); a justice system that does not work; high taxes and a taxation system that is in many respects purely arbitrary.
For the Portuguese people this means fewer jobs and a lower standard of living.
The data just released is a sign - I would say, a dramatic sign - of the loss of confidence of foreign companies in the Portuguese economy. Although there are no statistics discriminating the reasons that led to this outcome, I would consider the most important to be: high unit labour costs (that is, high wages and comparatively lower productivity); a justice system that does not work; high taxes and a taxation system that is in many respects purely arbitrary.
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