The large stocks of foreign debt, both private and public, and the high proportion of non-performing loans were vulnerabilities in a context of falling, but still very high, unemployment and the low productivity”, the EC said.
Brussels also said that growth was a weak point in the Portuguese economy since “growth potential is still under the level seen before the crisis” and is being penalised “by persistent obstacles” and by “rigidity in the product and work markets, along with huge external imbalances”.
The Community leaders also regret that “the momentum of reforms has slowed down since 2014” and warned that “there are still political gaps in the product and service market, of qualifications and innovation, of budget sustainability, business debt restructuring and labour market rigidity.”