“We have to increase our capacity to export goods and services. Tourism is a very important sector for Portugal's economy, it represents close to 20% of GDP, but we have to reduce this importance. The only way for the country to grow in order to increase people's income and improve public services is with innovation, services and high technology”, defended Joaquim Miranda Sarmento, during his participation in a panel at the Web Summit, in which the economic challenges for Portugal were addressed.
According to the Finance Minister, Portugal has seen this transformation, arguing that the country is “exporting much more than 15 years ago”, especially in terms of technology, and that this portion currently represents 50% of GDP. “This is the path we must follow”, he defended.
In addition to the need to diversify revenue sources, in the eyes of the Minister of Finance, “the main problem of the economy” is the “lack of human capital”, a challenge that affects, above all, the economic sectors most dependent on foreign human resources, such as hotels, restaurants and agriculture.
“There is not an economic sector that does not complain about a lack of workers. We are changing immigration rules, regulating and attracting people who work in these areas with contracts”, explained the official during the panel, noting the efforts that are being undertaken to also attract the most qualified, whether through the tax regime to avoid residents, such as IRS Jovem. These tax benefits, he says, will allow for the country “to attract workers from all sectors”.
When tourists come they bring their dollars with them, be it pounds, dollars, yen or euros earned outside of Portugal. In the national income accounts, these dollars are considered an export. We export our lovely country to others, in a way. So while Portugal wants to export tech, exporting the landscape via tourism also brings in foreign capital. You would prefer to be a net exporter not an importer.
By Larry Chisesi from Algarve on 15 Nov 2024, 13:00