What is the state of the Portuguese economy?

in Business · 15-05-2020 01:00:00 · 8 Comments
What is the state of the Portuguese economy?

The borders between Spain and Portugal remain closed. In the meantime, the economy has suffered enormous damage and the future in this area does not look bright.

Kaspar Huijsman of BinckBank Spain & Portugal keeps a close eye on all (international) developments. Not only because he wants to provide his customers with the right information but because he is also an investor himself.
In the first weeks, investors panicked because the stock markets plummeted and the BinckBank team in Marbella worked 12-hour days answering phone calls from clients. Then came the people who see opportunities on the stock market and want to start investing.
“Here and there you heard people criticising investors that they were only interested in their personal gain. But let’s be honest: everyone who invests (be it money, time or energy) hopes to get something in return. Many of our clients invest money that they do not immediately need in the stock market so they can realise a dream later in life.

“But also don’t forget that as long as people continue to invest money in company shares, those companies also continue to hold value. Although they may have less or no production at the moment, investors continue to have confidence in the future of that company. How else do you explain that there is still plenty of trading in the shares of large airlines? Those planes are all grounded. Prices are now lower, but investors think that they will rise again,” said Kaspar.
Trading on the stock market continues as usual, with the gains and losses as always. But what about the actual economy and what people are experiencing in their daily lives? There seem to be only losses for the time being. Kaspar thinks the near future will be very hard, but it will flourish again with new and fresh ideas. According to him, the biggest problem has to do with the longer term. “An enormous amount of money has been spent to contain the consequences of this sanitary crisis as much as possible. Money that has to be repaid and you have to come up with good solutions. We will see if that actually happens. Otherwise we will continue to stumble from crisis to crisis. ”
Kaspar Huijsman is not really optimistic about the Portuguese economy “With a few exceptions, Portugal is a country of small businesses. Entrepreneurs know there are risks when doing business, but this kind of crisis wasn’t in anybody’s business calculations. The losses are enormous, and I fear that many will not overcome them” says Kaspar. According to him it makes a difference that the Algarve is an area where people are used to short and violent economic cycles. “When things go well, many people come and when things go bad, they leave. But there are always people who want to come here. Portugal has an advantage as a European country that it is emotionally a safe destination. As soon as people are allowed to travel again and it is clear that measures have been taken, planes full of visitors will arrive here again.”



Comments:

Like John I will be retiring to Portugal next year. Not only do I disagree with the premise of the article I disagree with the spirit. I have been in finance for 30 years and I don't see the same future at all. You have handled your affairs better than most in the EU both economically and politically. I look forward to travelling soon.

by Craig from USA on 17-05-2020 12:13:00

I applied for a residency visa at the beginning of the year. Everything has been on hold. I also leased an apartment when I was there in February. I got just back into the US two weeks before the borders were closed. I was supposed to return to Coimbra April first. I've been in limbo all this time. I'm afraid with our government and citizens being so reckless the Schengen borders will not be open to US citizens anytime soon. I have got to get out of here. I'm so afraid I'm going to get sick. I don't feel safe.

by Angel Ryan from USA on 17-05-2020 02:49:00

I have interest in retiring in Portugal, but China investment worries me, Covid 19 there responsability and all E U countries should hold them liable and responsable for the current pandemic...thank you

by Albert Valencia from USA on 16-05-2020 10:46:00

Its anecdotal but over the last two months I have seen small business owners working harder. Its a good sign. However when a bank holding loans to zombie concerns gets a large tranche from State coffers prior to an audit one wonders.....

by Roland from Porto on 16-05-2020 07:04:00

My wife and I live in the United States and are applying for a D-7 VISA when the consulates open up again. I have been following Portugal’s handling of the crisis.
Believe me if you were in the United States right now it would be obvious why people would want to come to Portugal. We have no leadership or planning so in essence we plan to fail. We look forward to hopefully arriving in Portugal in the fall.

by John from USA on 15-05-2020 09:41:00

Yes, Portugal is a small country with just volatile and short term businesses due to the late economic strategies implemented over the last decades by miopic governments, opportunists and hypocrites who have jeopardized its viability as a resilient and sustainable country. With a huge puplic debt and with almost all of its patrimony, resources and production alienated to global interests there is a lack of moderate elements with a social and national conscience that will stop the laundering and return/nationalize significant components of our mineral, agricultural, maritime and production resources to us. This will happened with only a government and leaders leaders who will put national prioritiesband interests ahead of individual ones! Most utilities, patrimony, mineral and natural resources and production do not belong to us anymore! We just provide touristic infrastructure, ludic services, and wonderful natural resources to those rich enough to enjoy, own and trade them!

by Tony Fernandes from Other on 15-05-2020 01:02:00

In my opinion it's a every limited view yes Portugal is a enterprenual economy to a extent we all agree the risk appetite of this nature was not taken in any balance sheet the resilience will come with government stimulus and these are seen from statement made by Pedro and others as to the country and European block as whole
I am positive Portugal will be one of the better placed countries compared to other EU block countries that have a higher debt ration to their GDP
What Portugal needs is 're industrialisation approach with its abundant resources and keep China out of the country from taking over real estate businesses and resources my strong bets are on food industry technology and textile

by Alan from Other on 15-05-2020 09:26:00

The finish sound sso optimistic, which is nice - but not realistic. Certainly foreigners with their own property in Portugal will return (if they are allowed to go back home without quarantine), but why and how would tourists really want to come. Unless the states will use helicopter money, lots of people won't have the fund to go on holiday? And where is the fun going to a restaurant or museum that feels like a cholera hospital.

by John Dough from Lisbon on 15-05-2020 08:29:00
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