Lisbon, February 15, 2019: The National Institute of Statistics (INE) revealed yesterday that the Portuguese economy grew by 2.1% in 2018, two tenths below the forecasted 2.3%. According to INE’s rapid estimate compared to 2017, the increase in domestic demand and investment were not sufficient to counteract the slowdown in exports in 2018.
The Portuguese Family Businesses considers that the growth of the Portuguese economy can only be achieved through significant growth of Gross Domestic Product (GDP), and points as an ambitious goal a value of 4% per year.
“This is not a promise, but a challenge: Government, workers, unions and of course ourselves, entrepreneurs and business managers. We have been avoiding this kind of challenge because it is easier not to compromise so that nobody tells us we have failed, ”said Peter Villax, President of the Portuguese Family Businesses.
According to Portuguese Family Businesses, it is necessary to mobilise all economic agents for this great objective, which requires a great alignment of priorities, efforts and execution. “Right now our media is completely devoted to covering social conflicts, degraded infrastructure and a big debate about the role of the private in the provision of public services – rather than putting pressure on economic agents to produce more and solve the country’s problems, ”added Peter Villax.
The Portuguese Family Businesses has repeatedly expressed its willingness to participate in the definition of progress plans and policies aimed at increasing the output and increasing wages without decreasing employment through business innovation, new products, new markets and new strategies.
“We cannot keep thinking we will get different results by using the same methods. If we do not change, we will be trailing behind our European partners, growing at 1 to 2% per year, and continuing to increase our debt. But it wasn’t just the state that made mistakes, those of us in charge of the companies also made them, so we all have to change, ”concluded Peter Villax.
The Portuguese Family Businesses advocates a new relationship model between rulers, workers, unions and entrepreneurs, collaborating on a growth plan for Portugal. As an example of the various measures to be evaluated, the Portuguese Family Businesses announces three:
- Establishment of a long-term economic growth plan with objectives set for companies;
- Investment in exporting industries;
- Success incentive systems – reward the companies that most increase employment, margins and investment.
About the Portuguese Family Businesses:
The Portuguese Family Businesses (EFs) is a private non-profit association, established in 1998. Its main purpose is to promote and represent Family Businesses in the Portuguese economy, helping them to improve their management and to face future challenges. The Association plays a significant role in raising public awareness regarding Family Businesses as an important pillar of the Portuguese economy. Recent studies estimate that family businesses make up 70% to 80% of the Portuguese business fabric. Including all business sectors and types: Small, medium and large businesses; regional, national and multinational businesses, they contribute to 50% of employment and make up 65% of the national GDP. In the rest of the world, EFs are even more significant, making up 70%-90% of their countries’ GDP and 50% to 80% of employment.