10% of companies in these sectors do not generate revenues to maintain activity. They live at the expense of credit. PERs drag problem, says AECOPS
More than 10% of Portuguese construction and service companies are zombie companies, that is, "without economic viability" and "with very low productivity", and that "undermine the growth" of the economy. The data are from the study Zombie Companies in Portugal - The sectors not tradable the construction and services, the responsibility of the Office of Strategy and Studies of the Ministry of Economy and Innovation. At stake are more than 7,500 companies, ranging from construction and real estate, to trade, car repair and water distribution and waste management services. The data from the last two years seem to indicate that there is a "trend reversal" after the crisis, but Gabriel Osório de Barros, one of the authors of the paper, believes that "it is still early to draw conclusions."
Read more (in portuguese): More than 7500 zombie companies 'suck' competitiveness to construction and services