"Portugal, unlike Greece, is a debtor nation that has done everything that the European Union and the International Monetary Fund have asked it to, in exchange for a financial bailout. And yet, by the broadest measure of a country’s ability to repay its debts, Portugal is going deeper into the hole.
The ratio of Portugal’s debt to its overall economy, or gross domestic product, was 107 percent when it received the bailout. But the ratio has grown since then, and by 2013 is expected to reach 118 percent.
That’s not necessarily because Portugal’s overall debt is growing, but because its economy is shrinking. And economists say the same vicious circle could be taking hold elsewhere in Europe"(...).The New York Times