The European Crisis: Repercussions on the Portuguese Economy

The recent economic and sovereign debt crisis strongly affected several European countries. This paper examines the implications on the Portuguese economy by exploring the effects of the crisis on the most relevant macroeconomic variables. We analyse the overall economic context in Portugal from the time it joined the euro until its bailout from Troika to understand the several factors that justify the need for the Economic and Financial Assistance Programme. Additionally, we investigate the repercussions of the crisis from 2008 onward, emphasizing the effects after 2011 that already include the impact of the austerity measures. Finally, we carry out an analysis of the projections in the medium term and we assess the challenges and opportunities for Portugal in the near future.