Introduction:
The aim of this report is to investigate the competitiveness of the ‘poorest’ region, defined as the lowest level of Gross Value Added (GVA) per Capita in 2008, in Portugal.
Using data from 1980 to 2008, this report will compare the tendencies of convergence and divergence amongst the regions in Part I. An analysis of the extent to which prosperity was affected by productivity and employment levels in the poorest region will follow in Part II. Lastly, in Part III, 2 scenarios are developed for the poorest region looking 2 decades into the future.
Below in table 1 is a regional breakdown of levels of GVA per Capita in 2008, including the national GVA level and the GVA level of the Continente (mainland Portugal, excluding the autonomous regions of the Acores and Madeira):
Table 1: National and regional breakdown of GVA per Capita
Country/Region Name GVA per Capita (2008)
PT Portugal 9.30
PT1 Continente 9.33
PT11 Norte 7.16
PT12 Centro 7.59
PT13 Lisboa e V.do Tejo 12.72
PT14 Alentejo 7.83
PT15 Algarve 9.82
PT2 Acores 7.08
PT3 Madeira 10.40
The poorest region for the criteria explained above is Acores (PT2).
Part I
Section A
This section of part one outlines the extent of convergence and divergence of the Portuguese Regions.
Figure 1 below shows overall divergence of Portuguese regions (excluding the Continente) based on average GVA per Capita growth rates from 1980 to 2008.
Figure 1: Divergence of Portuguese Average % Regional Growth Rates (1980 to 2008)
Below in table 2, the average growth rates of the regions, between 1981and 2008 are shown. PT14 has grown the least in the last 27 years, while the autonomous region of PT3 ...