Since 2010 Portugal has faced a severe economic crisis, which has resulted in considerable fiscal consolidation and has affected all parts of the Portuguese economy and society. This DAC peer review of Portugal’s development co-operation takes place as the country is starting to show signs of recovery, though still facing significant challenges. Portugal submitted to an Economic and Financial Assistance Programme with the European Union and the International Monetary Fund between May 2011 and June 2014. Wide-ranging structural reforms and fiscal consolidation brought by the programme have started to help the economy return to modest growth, with GDP projected to reach 1.5% in 2015. Competitiveness is improving, and export performance has risen. However, unemployment, while declining, remains high at 13.9%, investment has plummeted, and external debt levels remain elevated.