During a recent conference in Lisbon, Nobel laureate Paul Krugman highlighted Portugal's significant economic progress since the Carnation Revolution in 1974, noting that the country's GDP per capita has risen approximately 155% since the mid-1970s.

Krugman reflected on the choices Portugal made to embrace democracy and build a decent society, often sharing this 'happy story' amidst troubling times in the U.S.

Reflecting on his first visit to Portugal in 1976 as an MIT student, Krugman contrasted the country's past poverty and political uncertainty with its current state, which he described as a success story.

Mário Centeno, Governor of the Bank of Portugal, acknowledged the advancements made since the revolution but emphasized that challenges remain, urging continued vigilance and effort.

Despite this progress, Krugman expressed concerns about ongoing issues such as an aging population and youth emigration, which could impact the country's future.

Krugman noted that while Portugal is not entirely dependent on American tourism and businesses, its significance increases its exposure to U.S. economic policies, particularly amidst ongoing trade tensions.

He criticized former President Donald Trump's economic policies, stating they place the U.S. at the 'epicenter of global chaos' and pose risks to global stability.

He emphasized the importance of assessing Portugal's vulnerability as trade wars evolve, but reassured that historical context suggests no immediate cause for alarm.

Concluding his remarks, Krugman expressed apprehension about returning to the U.S., citing current conditions that make him fearful about the journey home.

In a broader context, Krugman highlighted the disconnect between American and European expectations regarding economic policies and their implications for global stability.

At the Falar em Liberdade conference, Krugman reassured attendees that Portugal has successfully navigated past crises, including the eurozone crisis in 2011.

Centeno reiterated that while the revolution brought significant improvements, the full realization of its achievements is still a work in progress.