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Jorge Machado reveals forecasts for economic recovery


Jorge Machado, Managing Director of CCA Law Firm, speaking to Jornal Económico, comments on the current situation and reveals his forecasts for economic recovery.

"The economic recovery in 2020 is expected to be residual, as there are still many uncertainties in the EU aid packages - for example, how and when will these values be injected into the economy - so I believe that for many companies, this will be a year of survival and not a year of recovery. The State has a central role here in the renewal of support programs and measures implemented in companies in the most affected sectors, such as simplified lay-off or the injection into the economy of European funds. The great challenge will be to define the proper application of the money that will arrive in Portugal in the years to come, namely to ensure the prioritization of the sectors where its positive impact is maximized", declares CCA’s Managing Director.

Due to the effects of the crisis caused by COVID-19, Jorge Machado predicts "a reduction of between 5% to 10% in 2020 revenue"; further stressing that "there are areas that ended up not suffering from the pandemic, such as for example Labour and Real Estate which, due to the bureaucracy of the programs launched, were forced to provide continuous assistance to clients".

Regarding consolidation movements between offices, CCA’s Managing Director states that "it is possible that these consolidation movements exist, however, if they occur it should not be exclusively due to the current situation - any entrepreneur/manager in Portugal is used to unfavourable situations. I think this type of movement could occur due to other factors that already exist in the legal sector, such as digital transformation or the paradigm shift in the way services are delivered".