Tag Archive for: GDP

‘Portugal is becoming a country of minimum wages’

Joana Gonçalves is 47 years old and works for 20 years as an operating assistant at the same hospital. Last year she earned 665 euros per month, just as much as the minimum wage. Deducting € 103,08 for Social Security and adding a food allowance of € 81.09, her net salary was 643,01 euros. Fifteen years ago Ana earned € 580, while the minimum wage was 430 euros. In the meantime, salaries have been frozen as a result of austerity measures while minimum wages increased. Her daughter Maria had to drop out of university because Joana had no longer money to support her. Maria is now cleaning in a supermarket.

Minimum wages in the EU member states range from € 332 per month in Bulgaria to  € 2257 euros in Luxembourg. Since the Socialist Government of António Costa seized power in 2015, the minimum wage has increased by 40% to € 705 this year. Average salaries, however, have only increased 10% during the same period.

‘This neglect to update the salaries of more qualified workers has caused strong distortions in the country. Nowadays more and more workers receive a salary very close to the minimum wage’, says economist Eugénio Rosa, advisor to the Confederation of Portuguese Workers (CGTP). ‘Portugal is transforming into a country of minimum wages’.

The IEFP (Institute of Employment and Professional Training) proves the point. Of the 150 job vacancies on its site – aimed at civil engineers, electro technicians, mechanics, etc – the majority of salaries offered vary between €750 and €1000.

‘But it’s anything but easy to get out of this trap’, explains Fernando Alexandre, professor at the School of Economics from the University of Minho in Braga.

‘Not only is our minimum wage one of the lowest in Europe, our country was last year one of the EU countries with the lowest Gross Domestic Product (GDP) per capita, the country’s wealth-producing capacity per worker. Only Bulgaria was doing worse’.  

To make matters worse, the pandemic has condemned hundreds of thousands of Portuguese into poverty. These ‘new poor’ are almost all people who already earned a minimum wage – or even less – before the pandemic. Workers in the tourism sector, restaurants, and hospitality were most hit by the restrictions to contain the pandemic. Women – especially the elderly – are among the most affected.

The bottom line is that today one in five Portuguese is at risk of poverty. In children, the risk is even greater (22%). Food banks have become indispensable. There are more than 2000 institutions – parishes and councils identifying the populations’ needs – which have partnerships with the 21 food banks that are feeding approximately 450.000 persons (4% of the population).

Enjoy your week                   Aproveite a semana               (pic Público/Sapo)

Happiness has many faces, traveling is probably one of them — José Saramago

Tourism is injecting 30 million euros per day into the local economy, whereas the number of hotels in Lisbon has doubled over the last 10 years.

Tourism has not only become one of the most important pillars of the Portuguese gross domestic product (GDP), it also diminished regional asymmetries and unemployment, while increasing the national self-esteem.

Discussing its massive expansion in public, however, has become a new taboo. “The ones who are concerned about the gentrification of the historic city centres, want to destroy the economy. Those who ask for more regulation by government are unrealistic and whoever talks about the negative impact mass tourism has on other European cities, is said to be a manipulator.”

Fact remains that Lisbon and Porto have twice the number of tourists per resident than Barcelona or London and that there exists a lot of discontent about holiday rental services – such as Airbnb – and exorbitant rising rents for local tenants.

Although international tourism is more and more becoming an all year long issue, most tourists prefer to spend their summer holidays in August. They mainly come from the UK and Germany or –by car – from Spain and France,  residing in apartments and small villages, either on the mainland or on the islands of Madeira and the Azores.

The vast majority of the Portuguese celebrate the long school holidays in their own country. Also in August, just like the tourists from abroad. Traveling by car to the northern and central countryside, and staying with the family in a hotel is their favourite way of spending leisure time. Residents of Lisbon love to visit local beaches around the capital or savour free time in their summer cottages in the sunny Algarve.

Only 10% of the Portuguese travel abroad, mostly to nearby European destinations, although Cabo Verde, Morocco, and Turkey are gaining ground. When traveling – both inside and outside the country – the Portuguese spend about 40% less money, compared to their fellow Europeans

(pics Sapo/Publico)