Industrial productivity: a condition for transformation

Portugal has made significant economic and social progress but still lags in productivity compared to other European economies. This gap stems from a production model that relies heavily on low-tech, low-value-added activities. To enhance productivity, Portugal must modernize its industrial base through digitalization, automation, and investment in critical intangibles like R&D. The transformation requires not only corporate efforts but also systemic improvements in institutions and regulatory frameworks. A focus on creating more sophisticated economic activities will enable Portugal to compete effectively in the global economy. Increasing productivity is essential for building a more competitive and resilient economy.