Economics in a picture
The competitiveness of the Portuguese economy improved in 2021, maintaining the positive trajectory of recent years
The Composite Competitiveness Indicator combines annual aggregated data from the 27 EU Member-states for a set of variables related to competitiveness organized into four major dimensions: i) macroeconomic stability and income distribution; ii) education and innovation; iii) investment and infrastructure; iv) institutions and markets. The indicator's metrics is the distance to the best performing country relative to the gap between the best and worst performers. Weights attributed to each dimension and to each variable inside the respective dimension are identical.
In 2021 the indicator improved, maintaining the upward trajectory started in 2015. Nevertheless, the level of the indicator is still well below the value observed for countries with the best performances in the EU 27. In terms of the four dimensions considered, progress is observed in three of them, especially in education and innovation, but there was a slight deterioration in terms of institutions and markets in 2021.
For more details see article “The competitiveness of the Portuguese economy: A view from a composite indicator”, published in the Banco de Portugal Economic Studies, volume VIII - nº2.
Prepared by João Amador and Guida Nogueira. The analyses, opinions and findings expressed above represent the views of the author and not necessarily those of Banco de Portugal, Ministry of Economy or the Eurosystem.
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