The Portuguese Prime Minister Luís Montenegro claimed that Portugal “wants to grow between 3.5% and 4%” and advocated an economic transformation strategy based on corporate competitiveness, innovation, and valuing labour.

At the swearing-in of the new President of the Portuguese Trade and Services Confederation Gustavo Paulo Duarte, the Prime Minister claimed that the country has the right conditions to accelerate economic growth and take on a more competitive stance in the European context.

“The country must decide if it wants to remain put or cast our eyes to the future and the others who cast their eyes on us, ahead of them, running further than them”, he declared.

Trade and services as drivers for the economy

Trade and services were indicated as strategic sectors for the Portuguese economy’s modernisation, with Luís Montenegro noting the companies’ capacity to adapt to digitalisation, online commerce and new technologies, including artificial intelligence.

Reforms to boost growth and wages

Cutting income tax and corporate income tax was presented by the Prime Minister as a structural measure to boost productivity, attract investment and create better conditions for companies to grow and pay better wages.

“We are valuing labour more. We are telling people it is worthwhile producing more because the part of their income that comes back to them is greater”, he stated.

According to Luís Montenegro, the aim includes allowing companies to invest more in human capital, technology and innovation, boosting the capacity to compete in international markets.

The Prime Minister also reiterated the Government’s intention to move forward with reforms to the labour legislation, administrative simplification and the State reform, considering that Portugal needs to set up the conditions to grow above the EU average.

“It’s possible to grow 2% in our economy. Except that we want to grow from 3.5% to 4%”, he claimed.

Government maintains support to companies

In his speech, Luís Montenegro assured that the Government will continue attentive to the economic impacts triggered by the storms that hit the country and international instability, particularly in the Middle East.

Portugal was “one of the first countries in Europe” to have energy cost mitigation measures, the Prime Minister stressed, adding that the Portuguese State’s efforts are “among the biggest in Europe”.

The speech ended with a call to reinforce the partnership between the Government and corporate confederations, considering trade and services sectors that are “crucial” to economic growth, productive modernisation, and the country’s territorial cohesion.