One of the main characteristics of the recent economic recovery in Portugal has been the surprising progress of the labour market. In fact, between 2014 and 2017, the number of jobs grew by more than 351,000, which represents an average annual growth of 1.9%, slightly higher than the average GDP growth of 1.8% in the same period. CaixaBank Research details the main factors that are contributing to this change.
Fitch has been the last agency to raise its rating on Portugal to investment grade last Friday. The previous increase from S&P in September already showed signs of the sick person being in very good health. Neighbouring Spain should also see an improvement in its credit quality and be included in the A tranche, at least by S&P and Fitch.
The PSI outpaced other European stock markets yesterday, boosted by S&P’s decision to raise Portugal’s investment grade (BBB-) for the first time since 2012: the Portuguese market “celebrated” the milestone with a 1.9% rise.