As the Minister of the Economy, Pires de Lima, set off for the fourth leg of a promotional roadshow – this time to the US – he spoke publicly about the new “wave of entrepreneurship” sweeping the country. But is this political spin or another echo of the mantra being pushed across the globe that “it is time to look carefully at Portugal” – when the first-glance reality shows a country still in the vice-grip of economic desperation with businesses going bust every day? The Algarve Resident finds out.
Economist and successful businessman António Pires de Lima knows how to present a balance sheet, and this he did when he presented Portugal as a success story in the making.
Speaking in Porto at a conference entitled ‘Crescer & Competir 2020’, the Minister of Economy cited the creation of 27,000 new companies – “more than double those that have gone under” – increased exports and a five-year plan to take them to “at least 52% of GDP”, as well as “concrete investment opportunities” ripe for the picking.
A former winner of the Best Leader Awards (2009), Pires de Lima proclaimed: “Today Portugal is experimenting with a period of entrepreneurship that shows a new energy within the economy and society.”
The efforts, he said, have been responsible “in good part” for the 130,000 new jobs created from the end of March to the end of October.
Along with the “wave of entrepreneurship”, there has been a “growing force of competitiveness” within Portuguese companies, translating into an increase in exports over five years from 28% of GDP in 2008 to an impressive 41% in 2013.
“The vision is to end the decade with a strength in exports in GDP that is almost double that which Portugal enjoyed in 2009 – fruit of market gains in a wide variety of sectors, including the closer markets of the European Community as well as new markets and new geographies.”
Pires da Lima was talking at a conference aimed at highlighting the plus-points of the government programme ‘Compete’, designed to support businesses in their bid for innovation, internationalisation and competitiveness.
Days later, with an entourage of business brains, he was off on a five-day promotional tour of the United States. His mission: to bring further investment to Portugal. A message he had already relayed in the UK, Germany and Russia.
Pires de Lima won the Best Leader Awards category for “Leader in Internationalisation” in 2009, so high hopes are placed on this minister to work magic on the country’s economy.
With meetings scheduled in New York, San Francisco and Washington, Pires de Lima outlined his strategy in an interview with Diário de Notícias newspaper: “My perspective for the meetings in the US is very positive.
“We will have an intense agenda of contacts with private equities, multinational consultants and investment funds on a global scale, and present the competitive advantages for North American investment in Portugal. At the same time, we will be promoting in detail some of the sectors of our economy and their associated concrete investment opportunities.”
Summing up the nation with an apparently indefatigable supply of good energy, Pires de Lima stressed that Portugal is in a “privileged geostrategic position with excellent communications and logistical infrastructures and highly competent, flexible human resources.”
At roughly the same time, the OECD (Organisation for Economic Cooperation and Development) published more positive news, declaring that figures for October “identified tendencies of improvement” in the Portuguese economy with an “increase in expectations for the recovery”.
So is it really time to celebrate? Have we finally reached a plateau where the economic outlook is at long last looking less fraught?
Business leaders in the Algarve are reserved. Repeated calls and emails to business association NERA got us nowhere, but ACRAL, the association for commerce and services in the region, was much more forthcoming – and while president Victor Guerreiro conceded that there are signs of improvement, he told us it will take a long-time to filter down to the small and medium-sized businesses that Portugal used to pride itself on.
“Businesses are still shutting down every day,” he said. “The macro-economic situation does not correspond with the micro-economic. Small businesses up and down the country are still faced with the same problems, the same frustrations – problems from the Bank of Portugal, from the tax offices, rules and regulations from practically every corner, and, of course, lack of consumption.
“Without consumption, our internal economy cannot survive, so yes, there are positive signs in some sectors – the agricultural sector being the best – but there is still a long, long way to go.”
Guerreiro put his best estimate at “half a dozen years” before central government initiatives (and spin) filters through to make any lasting changes to the local economy.
And he stressed a second area of “grave problems” – one which never seems to show any sign of improvement. It has to do with politicians as a whole, and the way they function. It’s all very well having brave speeches, full of hope from business award-winning ministers, he said, but politicians need to change.
“Instead of talking about their parties and their policies, they should all get round the table and talk about the country; work together,” suggested Guerreiro.
“Portugal would get ahead much more quickly if politicians acted in the best interests of the country and not of themselves or their party.
“Instead of the Partido Socialista or Partido Social Democrático, we should have Partido Portugal,” the business leader concluded.
By NATASHA DONN news@algarveresident.com
