Among others, we are faced with the unwinding of easy monetary policy in advanced economies, which if it becomes disorderly could have serious spillover effects on our economy. At the same time, the threat of unbridled market exuberance could create imbalances in asset markets that could adversely impact the banking system’s ability to effectively intermediate funds.
On average, in the period 1995-2007, Gross Fixed Capital Formation in the non-tradable sector represented more than 60% of total GFCF, amounting to 15.2% of GDP. In my opinion, the real challenge Portugal is currently confronted with is that of generating and maintaining high levels of employment and productivity to ensure a lasting trajectory of growth and convergence with its EU partners.