Between 2018 and 2021, 15% of the GDP growth will be motivated by the increase in productivity. However, employment is still the number one cause for economic growth in Portugal.
Productivity, for the first time in 22 years, will help boost the economic growth in Portugal, with 15.2% of GDP growth being explained by that variable between 2018 and 2021. However, the employment rate is still going to have a more meaningful impact on GDP growth in the country.
This is one of the many bullet points found in the Portuguese central bank’s (BdP) analysis of the Portuguese economic growth, which was released this Tuesday. This Economic Bulletin updates BdP’s projections for the growth of the Portuguese economy until 2021.
In this period, employment per capita will remain as the major reason for economic growth in the country (contributing with 43.7%). Human capital emerges as the second largest contributor to economic growth (28.9%), a variable which is connected with the average level of education.
Productivity is the third largest contributor to the Portuguese economic growth, by 15.2% — whereas the contribution of the capital stock was the weakest (12.2%).