Portuguese government's efforts to overhaul economy 'have been paying off'
The efforts of the Portuguese government to "come to grips" over difficult and varied economic problems are starting to pay off, according to a financial ratings agency.
Fitch, which has upgraded the country's credit rating to "stable" from "negative", cited better-than-expected progress in cutting the country's public debt during 2006, without resorting to temporary or one-off measures.
And although Portugal's public debt is still higher than other countries in the European Union, the company noted that the government is now "well-placed" to continue its economic progress.
Chris Pryce, director of Fitch's sovereign team, commented: "Thanks to a notable fiscal policy effort to date, Portugal's public debt ratio now looks set to stabilise sooner and at a significantly lower level than previously expected, improving the credit outlook."
The company also noted that Portugal's booming export market "gives cause for optimism", despite increasing competition from China and the Far East.
Recently, the World Economic Forum's last Global Competitiveness Report placed Portugal's economy in 34th place, based on a comprehensive survey of countries.
< Back to latest news