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The Economy of Portugal

Portuguese Economy

Portugal's map

Economy - overview: Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified for the European Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies. Economic growth had been above the EU average for much of the 1990s, but fell back in 2001-08. GDP per capita stands at roughly two-thirds of the EU-27 average. A poor educational system, in particular, has been an obstacle to greater productivity and growth. Portugal has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target for foreign direct investment. The budget deficit surged to an all-time high of 6% of GDP in 2005, but the government reduced the deficit to 2.6% in 2007 - a year ahead of Portugal's targeted schedule. Nonetheless, the government faces tough choices in its attempts to boost the economy, which grew by 0.9% in 2008, while keeping the budget deficit within the eurozone's 3%-of-GDP ceiling.

GDP:

GDP - real growth rate: 0.2% (2008 est.) 1.9% (2007 est.) 1.4% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 3% industry: 25.6% services: 71.5% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 3.1% highest 10%: 28.4% (1995 est.)

Distribution of family income - Gini index: 38.5 (2007)

Inflation rate (consumer prices):

Labor force: 5.64 million (2008 est.)

Labor force - by occupation: agriculture: 10% industry: 30% services: 60% (2007 est.)

Unemployment rate: 7.6% (2008 est.)

Budget: revenues: $108.6 billion expenditures: $114.7 billion (2008 est.)

Industries: textiles, clothing, footwear, wood and cork, paper, chemicals, auto-parts manufacturing, base metals, diary products, wine and other foods, porcelain and ceramics, glassware, technology, telecommunications; ship construction and refurbishment; tourism

Industrial production growth rate: 1% (2008 est.)

Electricity - production: 44.83 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 48.02 billion kWh (2006 est.)

Electricity - exports: 1.906 billion kWh (2007 est.)

Electricity - imports: 8,371 kWh (2007 est.)

Oil - production: 6,281 bbl/day (2007 est.)

Oil - consumption: 301,000 bbl/day (2007 est.)

Oil - exports: 50,490 bbl/day (2005)

Oil - imports: 390,300 bbl/day (2005)

Oil - proved reserves: NA bbl

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 4.112 billion cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 4.095 billion cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: grain, potatoes, tomatoes, olives, grapes; sheep, cattle, goats, swine, poultry, dairy products; fish

Exports: $57.8 billion f.o.b. (2008 est.)

Exports - commodities: agricultural products, food products, oil products, chemical products, plastics and rubber, skins and leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, minerals and mineral products, base metals, machinery and tools, vehicles and other transport material, and optical and precision instruments

Exports - partners: Spain 27.1%, Germany 12.9%, France 12.3%, UK 5.9%, US 4.8%, Angola 4.5%, Italy 4% (2007)

Imports: $87.92 billion f.o.b. (2008 est.)

Imports - commodities: agricultural products, food products, oil products, chemical products, plastics and rubber, skins and leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, minerals and mineral products, base metals, machinery and tools, vehicles and other transport material, and optical and precision instruments, computer accessories and parts, semi-conductors and related devices, household goods, passenger cars new and used, and wine products

Imports - partners: Spain 29.5%, Germany 12.9%, France 8.4%, Italy 5.2%, Netherlands 4.6% (2007)

Debt - external: $461.2 billion (31 December 2007)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year: