Economic Freedom of the World
economic-freedom-of-the-world-2016
economic-freedom-of-the-world-2016
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148 • <strong>Economic</strong> <strong>Freedom</strong> <strong>of</strong> <strong>the</strong> <strong>World</strong>: 2016 Annual Report<br />
Portugal<br />
1980 1990 2000 2005 2010 2013 2014<br />
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)<br />
Summary Ratings (Rank) 5.62 (41) 6.20 (38) 7.55 (25) 7.25 (50) 6.95 (75) 7.43 (33) 7.49 (35)<br />
Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data)<br />
Area 1. Size <strong>of</strong> Government 3.63 5.22 5.26 5.23 4.48 5.41 5.46<br />
A. Government consumption 6.83 (16.76) 5.95 (19.76) 4.18 (25.80) 4.61 (24.33) 4.52 (24.62) 5.09 (22.70) 5.31 (21.95)<br />
B. Transfers and subsidies 5.69 (16.30) 5.91 (15.50) 5.88 (15.64) 4.81 (19.54) 3.89 (22.91) 4.05 (22.35) 4.05 (22.35)<br />
C. Government enterprises and investment 2.00 (42.20) 6.00 (29.90) 8.00 (16.45) 8.00 (17.65) 6.00 (25.66) 10.00 (14.30) 10.00 (14.30)<br />
D. Top marginal tax rate 0.00 3.00 4.00 3.50 3.50 2.50 2.50<br />
(i) Top marginal income tax rate 0.00 (84) 5.00 (40) 6.00 (40) 5.00 (42) 5.00 (47) 4.00 (55) 4.00 (55)<br />
(ii) Top marginal income and payroll tax rate 1.00 (57) 2.00 (57) 2.00 (58) 2.00 (62) 1.00 (68) 1.00 (68)<br />
Area 2. Legal System and Property Rights 8.00 7.73 7.64 7.32 6.69 6.99 6.99<br />
A. Judicial independence 7.01 7.76 4.89 5.82 6.07<br />
B. Impartial courts 6.35 5.33 2.91 3.65 3.64<br />
C. Protection <strong>of</strong> property rights 6.48 7.43 6.31 6.41 6.16<br />
D. Military interference in rule <strong>of</strong> law and politics 10.00 10.00 10.00 10.00 10.00<br />
E. Integrity <strong>of</strong> <strong>the</strong> legal system 8.33 8.33 8.33 8.33 8.33<br />
F. Legal enforcement <strong>of</strong> contracts 5.25 5.55 5.50 5.50<br />
G. Regulatory costs <strong>of</strong> <strong>the</strong> sale <strong>of</strong> real property 6.04 7.58 7.58 7.58<br />
H. Reliability <strong>of</strong> police 7.42 6.70 7.22 7.22<br />
I. Business costs <strong>of</strong> crime 8.29 7.94 8.37 8.40<br />
Area 3. Sound Money 5.61 6.05 9.51 9.54 9.75 9.86 9.82<br />
A. Money growth 7.96 (10.18) 8.23 (8.87) 8.77 (6.14) 8.83 (5.83) 9.78 (1.12) 9.91 (-0.46) 9.69 (1.57)<br />
B. Standard deviation <strong>of</strong> inflation 8.66 (3.34) 8.54 (3.66) 9.85 (0.39) 9.78 (0.55) 9.51 (1.23) 9.60 (0.99) 9.63 (0.92)<br />
C. Inflation: most recent year 5.82 (20.90) 7.45 (12.77) 9.43 (2.85) 9.54 (2.29) 9.72 (1.39) 9.95 (0.27) 9.94 (-0.28)<br />
D. <strong>Freedom</strong> to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00<br />
Area 4. <strong>Freedom</strong> to Trade Internationally 6.73 7.55 8.95 7.98 8.08 7.79 8.23<br />
A. Tariffs 8.60 8.26 9.18 8.39 8.34 8.25 8.43<br />
(i) Revenue from trade taxes (% <strong>of</strong> trade sector) 8.60 (2.10) 9.13 (1.30) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.64 (0.54) 9.81 (0.28)<br />
(ii) Mean tariff rate 8.52 (7.40) 9.78 (0.33) 9.46 (2.70) 8.98 (5.10) 8.90 (5.50) 8.94 (5.30)<br />
(iii) Standard deviation <strong>of</strong> tariff rates 7.12 (7.20) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.22 (9.46) 6.54 (8.64)<br />
B. Regulatory trade barriers 8.62 7.80 7.78 7.55 8.73<br />
(i) Non-tariff trade barriers 7.73 7.78 7.67 7.00 7.50<br />
(ii) Compliance cost <strong>of</strong> importing and exporting 9.50 7.82 7.89 8.10 9.96<br />
C. Black-market exchange rates 9.60 9.40 10.00 10.00 10.00 10.00 10.00<br />
D. Controls <strong>of</strong> <strong>the</strong> movement <strong>of</strong> capital and people 2.00 5.00 7.99 5.72 6.20 5.37 5.77<br />
(i) Foreign ownership/investment restrictions 9.05 7.67 6.03 5.63 6.82<br />
(ii) Capital controls 2.00 5.00 6.92 3.08 6.15 4.62 4.62<br />
(iii) <strong>Freedom</strong> <strong>of</strong> foreigners to visit 6.40 6.42 5.87 5.87<br />
Area 5. Regulation 4.10 4.45 6.40 6.17 5.73 7.10 6.93<br />
A. Credit Market regulations 4.42 5.76 7.88 7.09 6.53 8.32 8.36<br />
(i) Ownership <strong>of</strong> banks 0.00 2.00 5.00 5.00 8.00 8.00 8.00<br />
(ii) Private sector credit 9.27 7.29 8.64 6.28 1.58 6.95 7.08<br />
(iii) Interest rate controls (negative real interest rates) 4.00 8.00 10.00 10.00 10.00 10.00 10.00<br />
B. Labor Market regulations 3.78 3.13 4.46 5.26 4.76 6.46 6.11<br />
(i) Hiring regulations and minimum wage 4.05 6.70 2.23 5.57 5.57<br />
(ii) Hiring and firing regulations 3.40 2.83 2.86 2.30 3.90 2.44<br />
(iii) Centralized collective bargaining 5.18 5.18 4.88 5.51 5.53 6.25 5.62<br />
(iv) Hours regulations 6.16 3.96 5.51 5.30 6.00 6.00 6.00<br />
(v) Mandated cost <strong>of</strong> worker dismissal 1.19 2.52 7.04 7.05<br />
(vi) Conscription 0.00 0.00 5.00 10.00 10.00 10.00 10.00<br />
C. Business regulations 6.87 6.15 5.91 6.53 6.33<br />
(i) Administrative requirements 7.58 3.68 2.48 3.30 3.23<br />
(ii) Bureaucracy costs 7.20 3.57 3.46 3.46 3.46<br />
(iii) Starting a business 5.65 9.53 9.82 9.90 9.90<br />
(iv) Extra payments/bribes/favoritism 7.04 8.33 6.09 6.51 5.41<br />
(v) Licensing restrictions 5.48 6.67 9.07 9.07<br />
(vi) Cost <strong>of</strong> tax compliance 6.32 6.92 6.92 6.92<br />
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