Portugal

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 (purchasing power parity):
$237.3 billion (2008 est.)
$236.8 billion (2007)
$232.4 billion (2006)
GDP (official exchange rate):
$255.5 billion (2008 est.)
GDP - real growth rate:
0.2% (2008 est.)
1.9% (2007 est.)
1.4% (2006 est.)
GDP - per capita (PPP):
$22,000 (2008 est.)
$22,300 (2007 est.)
$21,900 (2006 est.)
GDP - composition by sector:
agriculture: 3%
industry: 25.6%
services: 71.5% (2008 est.)
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.)
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)
Investment (gross fixed):
21.9% of GDP (2008 est.)
Budget:
revenues: $108.6 billion
expenditures: $114.7 billion (2008 est.)
Public debt:
64.2% of GDP (2008 est.)
Inflation rate (consumer prices):
2.9% (2008 est.)
Commercial bank prime lending rate:
7.92% (31 December 2007)
Stock of money:
NA
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
Stock of quasi money:
NA
Stock of domestic credit:
$451.9 billion (31 December 2007)
Market value of publicly traded shares:
$132.3 billion (31 December 2007)
Agriculture - products:
grain, potatoes, tomatoes, olives, grapes; sheep, cattle, goats, swine, poultry, dairy products; fish
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 - 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.)
Current account balance:
-$23.97 billion (2008 est.)
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)
Reserves of foreign exchange and gold:
$11.55 billion (31 December 2007 est.)
Debt - external:
$461.2 billion (31 December 2007)
Stock of direct foreign investment - at home:
$118.1 billion (2008 est.)
Stock of direct foreign investment - abroad:
$69.24 billion (2008 est.)
Exchange rates:
euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)