Our comprehensive assessment of Portugal's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Portugal, as well as the latest industry developments that could impact Portugal's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Portugal before your competitors.
Portugal Country Risk
While support for Portugal's centre-right governing coalition, comprising the Social Democratic Party and the Popular Party has risen in recent months, main opposition Socialist party is likely to emerge as the winner in the parliamentary elections in October 2015, translating into a decisive turn away from austerity for Portugal in the coming years.
While the Portuguese economy will remain in a cyclical upturn in the coming quarters, propped up by ECB quantitative easing and low oil and commodity prices, the significant structural deficiencies of the economy will underpin low growth trajectory in the medium - to long term.
We have adjusted upward our real GDP growth forecast for 2015 - to 1.5% from 1.4% previously on account of lower oil prices,...
Portugal Industry Coverage (4)
Portugal Medical Devices
BMI Industry View: The Portuguese medical device market is the second smallest in Western Europe and per capita expenditure is low by regional standards. Most of the market is accountable to the public sector, which has implemented price cuts in order to contain public health expenditure. Market growth is expected to remain subdued, with low prices and lower volume purchases. Small and medium-sized companies have to deal with large debts owed by public hospitals.
Headline Industry Forecasts...
Pharmaceuticals & Healthcare
Portugal Pharmaceuticals & Healthcare
BMI View: Despite sustained economic growth and buoyant consumption indicators, high public and private debt levels in Portugal will remain a significant drag on the country's attractiveness to pharmaceutical companies. While hospital debt levels and payment delays have declined in 2015, the ongoing inability of public hospitals to manage their finances is still a cause for concern...
BMI View: Portugal's economic situation is slowly improving, but the after effects of the global economic crisis, and Portugal's own recession, which only ended at the end of 2014, continue to affect growth in the country's power sector, which will remain slow during the next ten years. In early 2015, Portugal began making early repayments on the loan it borrowed from the IMF in 2011, increasing investor confidence in the market. This resulted in the upgrading of state utility Energias de Portugal (EDP) and state grid company Redes Energeticas Nacionais (REN), to investment grade status, allowing both to sell bonds and reduce their considerable debt. This signifies that investor confidence is gradually returning, although BMI believes growth in the country's renewable sector will not return to pre-economic crisis levels before 2024....
BMI View : With the mature mobile market exhibiting volatile growth due to the dual effects of saturation and multi-service bundling and the high cost of fibre limiting the opportunities in the wireline broadband sector, the outlook for Portugal's telecoms industry is far from optimistic. That said, the sale of Portugal Telecom to Altice and the likely sale of the latter's surplus cable broadband units to Vodafone suggest that a change of strategy will emerge in the next 12-18 months. This will be a boon to the weak consumer market, but the surviving operators will need to be leaner and fitter to survive the changing market dynamics.