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Societies that successfully strive for an investment-friendly environment will succeed in transforming their economies after the pandemic and will address the digital and environmental challenges prior to COVID-19. An efficient combination of private and public investment will be crucial.
In the long run, countries with higher private investment experience higher rates of growth. Therefore, good public policies that encourage permanent increases in private investment rates lead to increases in long-term economic growth and welfare.
Economic activity continued to expand in the fourth quarter of 2020, albeit at a much slower pace. This reflected both solid ongoing momentum and the negative consequences of lower fiscal support and rising Covid-19 cases.
The Portuguese economy grew by 0.8% QoQ in 3Q16, considerably more than expected (0.3% QoQ). In contrast with previous quarters, domestic demand contributed negatively to growth (-0.4 pp), while the external sector did so positively, by 1.3 pp, due to the strong increase in exports and an unexpected fall in imports.