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Portugal's economic recovery is now well established, with GDP back to its pre-crisis level. However, legacies of the recent crisis remain. A high public debt burden and ongoing financial sector vulnerabilities make the economy less resilient. The country is also facing a rapidly ageing population. In this context, there should be a continued focus on getting unemployed or marginalised workers back into jobs and promoting productivity growth. The latter will further boost the external competitiveness of the economy. Existing strict regulations in some sectors including professional services and transport harm productivity prospects, as do those that hold back competition in the ports. However, the institutions implementing regulations also matter. Improving judicial efficiency is particularly important in this regard. Recent reforms have lowered the time to resolve a court case, but it remains long. The information system that registers court proceedings should thus be better utilised and the courts should be granted stronger autonomy in managing their resources.

SPECIAL FEATURES: FURTHER RAISING EXPORT PERFORMANCE; ENHANCING JUDICIAL EFFICIENCY