The Portuguese economy is growing strongly
The Portuguese economy has grown 2.7% in 2017, which is the strongest yearly performance since 2000. The country is getting this news without much fanfare, but it is a very interesting development, nonetheless. Even more, if you think that just four years ago the Portuguese government was considering if it should leave the Bailout programme without an additional “parachute”; as the predicted three year period of the bailout was ending.
Exportations and tourism
It is well known that the country has a good exportation potential, in different sectors like textiles, moulds or footwear. However, and according to the national stat agency (INE), which published the latest “flash” report about it, domestic demand has been clearly on the rise. This is a direct reflex of the tourist effect, and we can’t even say that it is only a Lisbon-Porto-and-Algarve matter. Tourism numbers are on the rise everywhere in the country, even in the “countryside” like in Alentejo or Central Portugal – even if Lisbon and Porto are concentrating the rush for hostel and restaurant openings.
This means that the tourist sector is no longer a “promise”, as has been touted through a couple of decades. Now, it is rather a certainty that the Portuguese economy is relying heavily on the tourist sector for its development in the forthcoming years.
A good sign for investors
This means two things. First, the country is able to deliver the best conditions for tourism – the mix of climate, interesting natural and cultural reasons to visit, security, social services and political stability. Foreigners can come here and very quickly feel they’re at home, that they’re welcomed and that their presence is valued.
Second, this means that for the foreseeable future the country will remain a hot property, either for tourism sector investment and for real estate investment. And as this gets more and more a strategic asset, you can expect that all the public authorities will turn their eyes to it, to assure that everything works right and properly about it.
Real Estate Investment
All of this news is great for the Real Estate prospects throughout the country, with a highlight on the Algarve of course. With the country once again back on its feet, there will be a “mini-boom” of Portuguese looking for a holiday home in the Algarve. And of course, those local residents looking at “upgrading” their current properties. The Portuguese from the North of the country has always been heavily invested in the Algarve, in fact, many of the resorts were owned massively by Portuguese before the huge influx of foreigners discovered it much to their annoyance! Since then, of course, there’s been no hiding the attraction to Portugal and the Algarve coast and the investment, along with property prices, strongly reflects that.
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