The Portuguese economy grew 7.5% in the last seventeen years, while the neighboring Spain registered a growth of 31.3% in the same period, according to the November conjunctural note of the Forum for Competitiveness, released on Tuesday, based on in the AMECO data.
The director of the organization's study office, Pedro Braz Teixeira, said that if between 2000 and 2017 "Portugal had grown as much as Spain", the Gross Domestic Product (GDP) would now be 43 billion euros higher, which would represent a margin of 18 billion euros of additional public revenue, impacting on a lower public deficit, lower taxes and increasing public investment.
"In order to have a more palpable idea of this simulation (with all its limitations), it would mean GDP would be 43 billion euros higher (238 instead of 195 billion euros in 2017), which, by applying the current tax rates, contributions and other current revenues (42.5% of GDP) would generate € 18 billion of additional public revenue (more than 9% of current GDP), "he points out.
"If the growth" had had the quality of Spanish (with limited external deficits), it would not have been necessary to ask for help from the troika, nor a high dose of austerity.
In the scenario outlined by the Forum for Competitiveness, "public debt could be at a level very similar to that of our neighbor", with interest rates similar and "taxes could be lower, especially on fuels".