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Portugal Economy Profile 2017

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Economy - overviewPortugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.

The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014. A modest recovery gathered steam in 2015 due to strong export performance and a rebound in private consumption. Growth slowed slightly in the first half of 2016, but rebounded in the last two quarters of the year to register at 1.4 percent for the year. Unemployment remains high, at 10.2%, at the end of 2016, but has improved steadily since peaking at 18% in 2013.

The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 2.0% in 2016, the country’s lowest since democracy was restored in 1974, and surpassing the EU and-IMF projections of 3%. Portugal is expected to exit the EU’s excessive deficit procedure by mid-2017.
GDP (purchasing power parity)$297.1 billion (2016 est.)
$294.1 billion (2015 est.)
$289.9 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$205.9 billion (2016 est.)
GDP - real growth rate1% (2016 est.)
1.5% (2015 est.)
0.9% (2014 est.)
GDP - per capita (PPP)$28,500 (2016 est.)
$28,300 (2015 est.)
$27,900 (2014 est.)
note: data are in 2016 dollars
Gross national saving15% of GDP (2016 est.)
15.7% of GDP (2015 est.)
15.3% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 66.3%
government consumption: 18.1%
investment in fixed capital: 14.7%
investment in inventories: -0.1%
exports of goods and services: 39.9%
imports of goods and services: -38.9% (2016 est.)
GDP - composition by sectoragriculture: 2.4%
industry: 21.9%
services: 75.9% (2016 est.)
Population below poverty line19% (2015 est.)
Labor force5.167 million (2016 est.)
Labor force - by occupationagriculture: 8.6%
industry: 23.9%
services: 67.5% (2014 est.)
Unemployment rate10.2% (2016 est.)
12.4% (2015 est.)
Unemployment, youth ages 15-24total: 34.8%
male: 34.2%
female: 35.4% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 2.6%
highest 10%: 25.9% (2015 est.)
Distribution of family income - Gini index33.9 (2015 est.)
34 (2014 est.)
Budgetrevenues: $87.26 billion
expenditures: $92.25 billion (2016 est.)
Taxes and other revenues42.4% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-2.4% of GDP (2016 est.)
Public debt126.2% of GDP (2016 est.)
129% of GDP (2015 est.)
note: data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
Inflation rate (consumer prices)0.8% (2016 est.)
0.5% (2015 est.)
Central bank discount rate0% (2016)
0.05% (2015)
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 rate4.1% (31 December 2016 est.)
4.49% (31 December 2015 est.)
Stock of narrow money$87.6 billion (31 December 2016 est.)
$72.29 billion (31 December 2015 est.)
note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Stock of broad money$296.1 billion (31 December 2014 est.)
$316.2 billion (31 December 2013 est.)
Stock of domestic credit$321.8 billion (31 December 2016 est.)
$326.2 billion (31 December 2015 est.)
Market value of publicly traded shares$59.84 billion (31 December 2015 est.)
$57.77 billion (31 December 2014 est.)
$79.18 billion (31 December 2013 est.)
Agriculture - productsgrain, potatoes, tomatoes, olives, grapes; sheep, cattle, goats, pigs, poultry, dairy products; fish
Industriestextiles, clothing, footwear, wood and cork, paper and pulp, chemicals, fuels and lubricants, automobiles and auto parts, base metals, minerals, porcelain and ceramics, glassware, technology, telecommunications; dairy products, wine, other foodstuffs; ship construction and refurbishment; tourism, plastics, financial services, optics
Industrial production growth rate0.9% (2016 est.)
Current Account Balance$1.722 billion (2016 est.)
$138 million (2015 est.)
Exports$52.2 billion (2016 est.)
$54.33 billion (2015 est.)
Exports - commoditiesagricultural products, foodstuffs, wine, oil products, chemical products, plastics and rubber, hides, leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, machinery and tools, base metals
Exports - partnersSpain 25%, France 12.1%, Germany 11.8%, UK 6.7%, US 5.2%, Angola 4.2%, Netherlands 4% (2015)
Imports$61.7 billion (2016 est.)
$64.49 billion (2015 est.)
Imports - commoditiesagricultural products, chemical products, vehicles and other transport material, optical and precision instruments, computer accessories and parts, semiconductors and related devices, oil products, base metals, food products, textile materials
Imports - partnersSpain 32.9%, Germany 12.9%, France 7.4%, Italy 5.4%, Netherlands 5.1% (2015)
Reserves of foreign exchange and gold$19.4 billion (31 December 2015 est.)
$19.62 billion (31 December 2014 est.)
Debt - external$449 billion (31 March 2016 est.)
$447 billion (31 March 2015 est.)
Stock of direct foreign investment - at home$138.2 billion (31 December 2016 est.)
$138.1 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$88.27 billion (31 December 2016 est.)
$87.44 billion (31 December 2015 est.)
Exchange rateseuros (EUR) per US dollar -
0.9214 (2016 est.)
0.885 (2015 est.)
0.7525 (2014 est.)
0.7634 (2013 est.)
0.78 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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