The poor performance of the Portuguese economy was explored in April 2007 by The Economist, which described Portugal as "a new sick man of Europe". From 2002 to 2007, the number of unemployed increased by 65% (270,500 unemployed citizens in 2002, 448,600 unemployed citizens in 2007). By early December 2009, the unemployment rate had reached 10.2% – a 23-year record high. In December 2009, ratings agency Standard & Poor's lowered its long-term credit assessment of Portugal to "negative" from "stable," voicing pessimism on the country's structural weaknesses in the economy and weak competitiveness that would hamper growth and the capacity to strengthen its public finances and reduce debt. In July 2011, ratings agency Moody's downgraded its long-term credit assessment of Portugal after warning of deteriorating risk of default in March 2011.

What magazine described Portugal as "a new sick man of Europe?"