Yet, survive it did. In 1996, GDP grew 2.8 percent, compared to the EU average of 1.6 percent. Since then, Portugal's economy has continued to grow faster than the EU average, slowly closing the gap in wealth that separates it from other member countries. Experts predict this economic surge will hold until at least the turn of the century. Economic growth was at 3.5 percent in 1997 and is expected to top that figure this year.
Disposable income is up, and real wages and productivity are on the rise at an even faster pace.
Job prospects are abundant and home purchases are soaring, with loans more affordable than ever. Consumption, exports and building investments are all performing at peak levels. Inflation has been falling even faster than expected, with an annual average rate of 1.9 percent in 1997, about half of 1995's. Long-term interest rates are now about a third of 1991 levels. Alcatel, Cascais, telecommunications network software 2.