Portugal Economy Profile 2009

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 declined 0.1% in 2008, while keeping the budget deficit within the euro-zone 3%-of-GDP ceiling.

GDP (purchasing power parity)

$236.5 billion (2008 est.)
$236.8 billion (2007 est.)
$232.3 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$244.5 billion (2008 est.)

GDP - real growth rate

-0.1% (2008 est.)
1.9% (2007 est.)
1.4% (2006 est.)

GDP - per capita (PPP)

$22,200 (2008 est.)
$22,200 (2007 est.)
$21,900 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2.8%
industry: 25%
services: 72.2% (2008 est.)

Population below poverty line

18% (2006)

Labor force

5.625 million (2008 est.)

Labor force - by occupation

agriculture: 10%
industry: 30%
services: 60% (2007 est.)

Unemployment rate

7.6% (2008 est.)
8% (2007 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)
35.6 (1995)

Investment (gross fixed)

21.7% of GDP (2008 est.)

Budget

revenues: $105.5 billion
expenditures: $111.9 billion (2008 est.)

Public debt

66.4% of GDP (2008 est.)
61.5% of GDP (2004 est.)

Inflation rate (consumer prices)

2.6% (2008 est.)
2.4% (2007 est.)

Central bank discount rate

3% (31 December 2008)
5% (31 December 2007)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

Commercial bank prime lending rate

NA% (31 December 2008)
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

$425.6 billion (31 December 2008)
$412.7 billion (31 December 2007)

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

-2.2% (2008 est.)

Electricity - production

44.83 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 64.5%
hydro: 31.3%
nuclear: 0%
other: 4.1% (2001)

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 - imports

390,300 bbl/day (2005)

Oil - exports

50,490 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

-$29.6 billion (2008 est.)
-$21.18 billion (2007 est.)

Agriculture - products

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

Exports

$56.42 billion (2008 est.)
$51.81 billion (2007 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 25.7%, Germany 12.7%, France 11.1%, Angola 5.9%, UK 5.3% (2008)

Imports

$87.83 billion (2008 est.)
$75.98 billion (2007 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 28.9%, Germany 11.6%, France 8%, Italy 4.9%, Netherlands 4.4% (2008)

Reserves of foreign exchange and gold

$11.95 billion (31 December 2008 est.)
$11.55 billion (31 December 2007 est.)

Debt - external

$484.7 billion (31 December 2008)
$483.9 billion (31 December 2007)

Stock of direct foreign investment - at home

$117.8 billion (31 December 2008 est.)
$114.2 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$69.24 billion (31 December 2008 est.)
$69.24 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$132.3 billion (31 December 2007)
$104.2 billion (31 December 2006)

Economic aid - donor

ODA, $396 million (2006)

Currency (code)

EUR

Currency (code)

euro (EUR)

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

calendar year