Chart of the week: Portugal’s remarkable recovery

"Portugal is overtaking Italy in the bond-market pecking order," says Aimee Donnellan on Breakingviews. At the height of Portugal's debt crisis in 2011, it cost Lisbon around 11% more to borrow for ten years than Rome. Now the ten-year yield has slipped below Italy's for the first time since 2009.

This cements an impressive rebound. The deficit will slide to just 1.3% of GDP this year, while loosening labour laws has boosted growth to an estimated 2.5% this year. The debt pile of 125% of GDP is shrinking. Italy is growing more slowly, has implemented virtually no structural change, and is politically unstable.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up