The IMD World Competitiveness Yearbook 2016 provides a comprehensive analysis of Portugal's competitiveness across multiple metrics, ranking the country 39th out of 61. Key strengths include high public expenditure on education and startup facilitation, while challenges involve reducing public debt and attracting foreign investment. The report emphasizes the importance of competitiveness in creating sustainable value through effective governance and economic policies.

2. IMD World Competitiveness Center
2016 IMD World Competitiveness Yearbook:
Portugal
Christos Cabolis
Chief Economist, IMD World Competitiveness Center

3. IMD &
The World Competitiveness Center
 Leading Global Business School
 The IMD World Competitiveness Center (WCC)
- Publisher of the annual IMD World Competitiveness Yearbook (since 1989)

4. IMD Definition of Competitiveness
“the extent to which a country is able to
facilitate an environment in which enterprises
can generate sustainable value,”
…sustainable value creation is the long term capacity of
enterprises to remain profitable, create fulfilling jobs,
while minimizing the environmental impact of their
activities

5. Economic
Performance
Government
Efficiency
Business
Efficiency
Infrastructure
 Domestic Economy
 International Trade
 International Investment
 Employment
 Prices
 Public Finance
 Fiscal Policy
 Institutional Framework
 Business Legislation
 Societal Framework
 Productivity
 Labor Market
 Finance
 Management Practices
 Attitudes and Values
 Basic
 Technological
 Scientific
 Health & Environment
 Education
OVERALL
RANKING
2/3s Statistics
Competitiveness
that can be
measured!
The emphasis on
HARD FACTS
ensures
objectivity and
transparency
342 Criteria 20 Sub-Factors 4 Factors Overall Ranking
1/3 Survey
Competitiveness
as it is perceived!
Over 6,200
respondents
Competitiveness Breakdown:
Methodology / Overall Ranking

6. Overall Ranking 2016
Top 10 countries

7. Economic
Performance
Government
Efficiency
Business
Efficiency
Infrastructure
 Domestic Economy
 International Trade
 International Investment
 Employment
 Prices
 Public Finance
 Fiscal Policy
 Institutional Framework
 Business Legislation
 Societal Framework
 Productivity
 Labor Market
 Finance
 Management Practices
 Attitudes and Values
 Basic
 Technological
 Scientific
 Health & Environment
 Education
OVERALL
RANKING
48th
28th
46th
48th
43
33
42
55
15
39
46
50
49
35
38
33
32
21
17
2/3s Statistics
Competitiveness
that can be
measured!
The emphasis on
HARD FACTS
ensures objectivity
and transparency
342 Criteria 20 Sub-Factors 4 Factors Overall Ranking
39th
Out of 61
1/3 Survey
Competitiveness
as it is perceived!
Over 5,400
respondents
Competitiveness Breakdown: Portugal
Methodology / Overall Ranking
57
46
39
22
31

8. Competitiveness Landscape: Portugal
2016 & 2015
Portugal 2016 43 33 42 55 15 57 46 39 22 31 39 46 50 49 35 38 33 32 21 17
Portugal 2015 44 36 22 54 21 52 41 33 14 31 42 47 47 52 38 36 30 32 23 15
+1
+3
-20
-1
+6
-5
-5
-6
-8
-
+3
+1
-3
+3
+3
-2
-3
-
+2
-2
DomesticEconomy
InternationalTrade
InternationalInvestment
Employment
Prices
PublicFinance
FiscalPolicy
InstitutionalFramework
BusinessLegislation
SocietalFramework
Productivity&Efficiency
LaborMarket
Finance
ManagementPractices
AttitudesandValues
BasicInfrastructure
TechnologicalInfrastructure
ScientificInfrastructure
HealthandEnvironment
Education
Economic Performance Government Efficiency InfrastructureBusiness Efficiency
Overall
26
28
48
46
34
48
45
48
36
39
Portugal
2016
Portugal
2016
Portugal
2016
Portugal
2016
Portugal
2016
Portugal
2015
Portugal
2015
Portugal
2015
Portugal
2015
Portugal
2015
2015 2015 2015 2015

9. Attitudes & Values: 35th
International Trade: 33rd
Business legislation: 22nd
Education: 17th
Health: 21st
Key Strengths 2016: Portugal
Export Concentration
by product 6th Start up days 4th
Start up procedures 6th
Public Expenditure on
Education per pupil 3rd
Tariff
Barriers
15th
Language
Skills12th
Green Technology 4th Medical
Assistance11th
Flexibility &
Adaptability
15th
National
Culture
11th

10. Key Challenges 2016: Portugal
 Maintain public deficit reduction trend and foster public/private
debt reduction.
 Promote a healthy and well-capitalised banking system.
 Attract and retain foreign investment, particularly through stable
fiscal policies.
 Improve qualifications and promote labour market reforms that
favour merit and flexibility.
 Boost productivity and keep up a sustainable trade balance
surplus.
Provided by: Porto Business School

11. Key Attractiveness Indicators 2014 - 2016
The Top Perceptions of Portuguese Executives
2014 2015 2016
From a list of 15 indicators, respondents of the Executive Opinion Survey select the
five that they perceived as the key attractiveness factors of their economy. The chart
shows the percentage of responses for the top choices over three years.

12. Openness is correlated with competitiveness. We argue it is a key driver.
Competitiveness and Trade Openness
Most competitive – rolling averages – Least competitive
Trade as a % GDP Protectionism does not
impair business [Survey]

13. IMD World Talent Report: Portugal
2013 - 2015
Portugal
Rank 2015
of 61
25
11
38
Overall
Investment &
Development
Appeal
33Readiness
11
2011

14. Talent Factor 1: : Portugal
Investment and Development
Criteria Value 2015 Rank
Total Public Expenditure on Education Percentage of GDP 6.77 % 5
Public Expenditure on Education per Pupil (Secondary) Percentage of GDP per capita 36.31 % 3
Pupil-Teacher Ratio (Primary Education) Ratio of students to teaching staff 11.87 Ratio 11
Pupil-Teacher Ratio (Secondary Education) Ratio of students to teaching staff 8.56 Ratio 4
Apprenticeships Are sufficiently implemented 4.63 Survey 33
Employee Training Is a high priority in companies 4.41 Survey 57
Female Labor Force Percentage of total labor force 48.69 % 6
Health Infrastructure Meets the needs of society 7.09 Survey 22
Factor 1 : Investment and Development

15. Talent Factor 2: : Portugal
Appeal
Criteria Value 2015 Rank
Cost-of-Living Index Index of a basket of goods & services 78.70 Index 24
Attracting and Retaining Talents Is a priority in companies 5.70 Survey 49
Worker Motivation Is high 5.05 Survey 44
Brain Drain Does not hinder competitiveness in your economy 3.67 Survey 46
Quality of Life Is high 7.24 Survey 26
Foreign High-Skilled People Are attracted to your country's business environment 4.36 Survey 43
Remuneration in Services Professions Gross annual income including supplements such as bonuses 26,400 US$ 28
Remuneration of Management Total base salary plus bonuses and long-term incentives 177,599 US$ 29
Effective Personal Income Tax Rate Percentage of an income equal to GDP per capita 17.65 % 33
Personal Security and Private Property Rights Are adequately protected 8.08 Survey 21
Factor 2 : Appeal

16. Talent Factor 3: : Portugal
Readiness
Criteria Value 2015 Rank
Labor Force Growth Percentage change -1.12 % 55
Skilled Labor Is readily available 5.74 Survey 28
Finance Skills Are readily available 5.60 Survey 45
International Experience Of senior managers is generally significant 4.18 Survey 57
Competent Senior Managers Are readily available 4.11 Survey 50
Educational System Meets the needs of a competitive economy 6.16 Survey 20
Science in Schools Is sufficiently emphasized 5.40 Survey 28
University Education Meets the needs of a competitive economy 6.95 Survey 16
Management Education Meets the needs of the business community 7.38 Survey 7
Language Skills Are meeting the needs of enterprises 8.11 Survey 10
Student Mobility Inbound Foreign tertiary-level students per 1000 inhabitants 1.76 Number 29
Educational Assessment - PISA PISA survey of 15-year olds 487.0 Value 30
Factor 3 : Readiness

17. More Information?
IMD
www.imd.org
IMD World Competitiveness Center
www.imd.org/wcc
wccinfo@imd.org
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