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Portuguese market snapshot
Portuguese market snapshot
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Portuguese market snapshot

09/04/2018

Portugal has become a diversified and increasingly service-based economy since joining the European Union (EU) in 1986. The financial crisis in 2008 deeply affected the country. In 2015, Portugal started to show economic recovery with a strong export performance and a rebound in private consumption

The Portuguese Republic under the spotlight

For several years, Portugal was in a difficult economic situation, drawing the attention of Europe. The financial crisis, from 2008, combined with the rigidity of the labor market and the high level of public and private debt, led to a slowdown of the economy.

Portugal has returned to economic growth, thanks to market reforms, a rigorous taxation policy initiated in 2011, and the broader return of market confidence in the Eurozone. Portugal has successfully managed to decrease its budget deficit from 11.2% of gross domestic product (GDP) in 2010 to 2.0% in 2016 allowing it to finalise the EU/IMF bail-out programme in 2014 and to exit the EU Excessive Deficit Procedure in 2017. GDP growth reached 1.6% in 2016 and 2.7% in 2017.

In addition, Portugal has successfully managed to regain access to capital markets, benefiting from the ECB quantitative easing programme. Regaining an investment grade rating from Standard & Poor’s in September 2017 was a further step in its financial recovery.

Today, Portugal can rely on a flourishing tourism industry, high-quality infrastructure and competitive costs. Portugal’s main challenge is to consolidate its medium-term growth by diversifying its manufacturing industry, expanding its workforce services industry and increasing its investments in research.

The “At a glance” table gathers figures of the portugal economy. We show the domestic market capitalization evolution between 1998 and 2018. Three critareias have been taken into account: “population”  in 1998 it’s “10.1mn” and in 2018 it’s “10.4mn”; second criteria “Gross Domestic Product” in 1998 it’s “$124bn” and in 2018 it’s “$223bn”.  Last criteria “GDP per capita”  in 1998 it’s “$12,220” and in 2018 it’s “$21,390”. The source is “international monetary fund”.  The sovereign risk rating is BB with a positive outlook. The source is standard & Poors.

Guiding you through a recovering market

Leveraging on the presence of the BNP Paribas Group in Portugal since 1985, BNP Paribas Securities Services started its coverage of the Portuguese market in 1999, in what was at the time an innovative solution, using the benefits of the EU Passport.

Since we have been operational in the Portuguese market, clients can rely on our deep understanding of local practices and rules, access to market authorities and our commitment in the development of the Portuguese post-trading environment. We have led the Portuguese Securities Market Clearing and Custody Committee for 10 years to represent client interests in front of the regulator, the tax authorities and the market infrastructures.

We have also integrated the operational and strategic challenges created by new regulations and market initiatives such as TARGET2-Securities (T2S). Indeed, the Portuguese market migrated to the T2S settlement platform in March 2016. Our local custody, local clearing and settlement solutions in the Portuguese market are fully integrated within our Euronext solution, providing linkage to the T2S pan-European settlement platform, to the clearing house (LCH) and the local central securities depository (Interbolsa).

By drawing from the BNP Paribas Securities Services offer and expertise, investors, corporates and financial intermediaries benefit from a diversified product range for their activity, supported by our global operating model, whilst relying on a team of local experts who speak the language and understand the culture.

The Portuguese hub for global asset servicing operations

BNP Paribas Securities Services has been operating in Portugal since 1999. Our centre of excellence in the country was created in 2008 and supports our custody activities, providing essential operational services to 14 of our European locations. The external clients served by our teams in Portugal include European fund managers, insurance companies, sovereign wealth funds, corporates, financial intermediaries and other institutional investors. The centre acts as a dual office for our Paris headquarters and is part of our business contingency programme.

The “At a glance” table gathers figures of the portugal market situation. We show the evolution between 2007 and 2017. Two critareias have been taken into account: “domestic market capitalisation”  in 2007 it’s “$254.1bn” and in 2017 it’s “$287.8bn”; second criteria “Number of listed companies” in 2007 it’s “106” and in 2017 it’s “110”. The source is “Market capitalization, CMVM. Number of listed companies, Euronext Lisbon”.

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This visual represents a grey rectangular frame, where we present the moroccan economy with numbers and data visualisation. At the top left side there is the title “At a glance”. In the center of the frame, there is a table which fills the whole frame. In the first box, which corresponds to the intersection of the first column and first line, the box is empty. In the second box, which corresponds to the intersection of the second column and the first line, it is written “1998”. In the third box, which corresponds to the intersection of the third column and the first line, it is written “2018”. In the fourth box, which corresponds to the intersection of the first column and the second line, it is written “population” with two fellows’ pictogram. In the fifth box, which corresponds to the intersection of the second column and the second line, there are eight fellows’ pictogram, with 5 in dark green and 2 and a third in white, accompanied by a blue bubble where it is written “10.1mn”. In the sixth box, which corresponds to the intersection of the third column and the second line, there are eight fellows’ pictogram, with five and a half in dark green and 2 and a half in white, accompanied by a blue bubble where it is written “10.4mn”. In the seventh box, which corresponds to the intersection of the first column and the third line, there is written “Gross Domestic Product” accompanied by a bourse pictogram. In the eighth box, which corresponds to the intersection of the second column and the third line, there is a bourse pictogram a little bit filled in by dark green, accompanied by a blue bubble where it is written “$124bn”. In the ninth box, which corresponds to the intersection of the third column and the third line, there is a bourse pictogram half-filled in by light green, accompanied by a blue bubble where it is written “$223bn”.  In the tenth box, which corresponds to the intersection of the first column and the fourth line, it is written “GDP per capita”, accompanied by two stock of pieces pictogram.  In the eleventh box, which corresponds to the intersection of the second column and the fourth line, there is a four stock of pieces pictogram, a half of the first stock in dark green, accompanied by a blue bubble where it is written “$12,220”. In the twelfth box, which corresponds to the intersection of the third column and the fourth line, there is a four stock of pieces pictogram, with one stock in light green, accompanied by a blue bubble where it is written “$21,390”. At the bottom right side of the grey frame, there is written “source: international monetary fund”. Under the source, at the bottom center of the grey frame, it is written, in a blue frame, “sovereign risk rating: BB with a positive outlook”. Under this blue frame, at the bottom right side, it is written “source: standard & Poors”.

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