OECD's annual report on Portugal's economy. Part 1 of the survey reviews macroeconomic policies in the medium-term context, emphasizing the need for a better policy mix in order to achieve nominal convergence with other EC countries. Part II analyzes government expenditure trends, reforms to control them over recent years, and the allocation of public spending across different levels of government. Macroeconomic and structural policies are discussed in Part III, followed by a review of of recent trends and the presentation of OECD projections for 1993 and 1994 in Part IV.