Nightmare in Portugal

The FT has a long, deeply depressing portrait of conditions in Portugal, focusing on the plight of family-owned businesses — once the core of the nation’s economy and society, now going under in droves.

Pressure mounts on bailed-out Portugal’s government with motion of no confidence

Opposition parties in Portugal presented a motion of no confidence in the government Wednesday, giving voice to widespread discontent as the bailed-out country endures a predicted third year of recession and a jobless rate of 17.5 percent.

The center-right coalition government had enough votes to easily defeat the motion in Parliament. But the political pressure added another dose of uncertainty into financial markets already jittery about the fate of Cyprus and the wider eurozone.

Público: ‘Portugal has smaller debt but pays interest rate close to Greece’s’

Público, 1 March 2013

Of all the countries receiving bailout, Portugal is one that has seen the lowest reduction in its interest rates, writesPúblico.

As a consequence, the proportion of debt repayments to GDP for Portugal will be at a level very close to that of Greece (4.4 per cent for Portugal, against 4.7 per cent for Greece) even though the latter has a substantially higher level of debt.

Now Portugal’s former colonies are performing much better than Portugal

This year’s list of fastest-growing economies, as ranked by the Economist Intelligence Unit, is mostly made up of what just a few years ago would have been considered a roster of economic underdogs, with most located in far-flung parts of Asia and Africa:

Economist/ Olga Khazan

Mongolia is the clear front-runner, its growth driven by China’s demand for minerals. In the first half of 2013, Mongolia is expected to reach full production in its “Oyu Tolgoi,” or “Turquoise Hill,” copper and gold mine near the Chinese border, which will eventually account for one-third of its GDP. 

Portugal, Greece seek technical advice from World Bank: Kim

(Reuters) - Greece and Portugal have sought technical advice from the World Bank to help their economies recover from deep fiscal crises and talks are at the early stages, bank President Jim Yong Kim said on Sunday at the G20 meeting in Mexico.

It is the first time in recent history that developed countries have turned to the World Bank for advice, a major shift for an institution known for its work in the world's poorest nations.

"For both Portugal and Greece we are in the very early stages of conversation," Kim told reporters on the sidelines of the G20 meetings. "In another few weeks, in another month, we will have much more detail on exactly what we're going to do," he added.