Portugal

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Since it joined the European Union in 1986, Portugal has enjoyed considerable economic progress mainly due to growing international trade with member countries. From 2005, the country embarked on a policy of stabilization of public accounts, establishment of free-market reforms and dynamization of exports (market diversification especially towards Angola and China). However, Portugal was affected by the international financial crisis.

Since the beginning of 2009, Portugal is in the middle of a deep recession because of the collapse of external demand and restrictive financial conditions which have affected all sectors of the economy, especially exports and investments. Growth dropped in 2009 while unemployment exceeded the 9% threshold. The State had to nationalize one of the country's major banks, the Banco Portugués de Negocio (website in Portuguese). Because of the increase in public expenditure aimed at supporting the economy, the budgetary situation degenerated greatly in 2009. In the meantime, a budgetary stabilization and structural reforms will be essential in order to improve growth prospects, reduce long-lasting unemployment and help reinforce the sustainability of public finances.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	195.19	223.74	244.49	209.14e	209.58e
GDP (constant prices, annual % change)	1.4	1.9	-0.0	-4.1	-0.5
GDP per capita (USD)	18,467	21,109e	22,997e	19,624e	19,624e
General government balance (in % of GDP)	-3.9	-2.6	-2.6	-5.9e	-6.1
Inflation rate (%)	3.0	2.4	2.6	0.3	1.0e
Unemployment rate (% of the labor force)	7.7	8.0	7.8	9.6	11.0
Current Account (billions USD)	-19.69	-21.26	-29.44e	-18.98	-18.48
Current Account (in % of GDP)	-10.1	-9.5	-12.0	-9.1e	-8.8

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The agricultural sector is less mechanized than in most western European countries and consequently it is less productive. Agriculture represents about 3% of the GDP. Main crops are cereal, fruit, vegetables and wine. Port wine exports represent 1.4% of total exports. Portugal has many natural resources. The mining sector (copper, tin) represents 6% of the GDP and Portugal is one of the main exporters of marble. The forests of Portugal provide a large part of the world cork supplies.
The manufacturing industry is modern and is made up of small and medium enterprises. Its main sectors of activity are metallurgy, mechanical engineering, textiles and construction. Moreover, the country has increased its role in the European automobile sector and has a world class mold manufacturing industry.
Services, particularly tourism, play a more and more important role. The tertiary sector contributes to more than 70% of the GDP.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	11.8	30.6	57.5
Value added (in % of GDP)	2.7	24.5	72.9
Value added (annual % change)	-3.8	2.3	1.9

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Euro (EUR) - Average annual exchange rate for 1 USD	0.81	0.80	0.80	0.73	0.68

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 64.9/100
Position:: moderately free
World Rank:: 53 out of 179
Regional Rank:: 25 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Joining the EU has changed the structure of Portuguese imports and exports. The country exports more and more technological equipment, instead of the traditional agricultural products or products from the textiles and clothing industry.
The EU is by far Portugal's main customer, followed by the United States.
Portugal showed a trade balance deficit in 2008 and 2009. This trend should reverse itself from 2010.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	46,337	55,386	58,916	64,510	75,853
Exports of goods (millions USD)	32,055	36,986	38,577	43,592	51,746
Imports of services (millions USD)	8,293	9,746	10,456	11,758	13,950
Exports of services (millions USD)	12,354	14,701	15,193	17,839	23,156
Imports of goods and services (annual % change)	-0.8	6.7	3.5	4.8	5.6
Exports of goods and services (annual % change)	3.9	4.0	2.0	9.3	7.4
Imports of goods and services (in % of GDP)	34.5	36.2	37.4	39.3	40.1
Exports of goods and services (in % of GDP)	28.0	28.4	28.5	31.2	32.9
Trade Balance (millions USD)	-14,282	-18,401	-20,339	-20,918	-24,108
Trade Balance (including service) (millions USD)	-10,221	-13,445	-15,603	-14,836	-14,901
Foreign trade (in % of GDP)	62.5	64.6	65.9	70.5	73.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
Spain	26.7%
Germany	12.5%
France	12.0%
United Kingdom	5.8%
United States	4.5%
Angola	4.5%
Italy	3.8%
Netherlands	2.7%
Belgium	2.4%
Singapore	1.9%
Sweden	1.1%
Malaysia	1.1%
Japan	0.8%
Brazil	0.7%
Switzerland	0.7%
Denmark	0.7%
Poland	0.6%
Cape Verde	0.6%
Finland	0.6%
Morocco	0.5%
See more countries	38.5%

Main suppliers (% of imports)	2007
Spain	29.5%
Germany	12.8%
France	8.3%
Italy	5.2%
Netherlands	4.5%
United Kingdom	3.4%
Belgium	2.8%
Brazil	2.4%
China	1.8%
Nigeria	1.8%
United States	1.6%
Libya	1.4%
Norway	1.2%
Sweden	1.1%
Algeria	1.0%
Japan	1.0%
Russia	1.0%
Austria	0.9%
Ireland	0.8%
Turkey	0.8%
See more countries	39.6%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	11.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	11.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	7.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	4.4%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	4.4%
Plastics and articles thereofPlastics and articles thereof	3.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	3.4%
Iron and steelIron and steel	2.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.6%
Articles of iron or steelArticles of iron or steel	2.5%
Beverages, spirits and vinegarBeverages, spirits and vinegar	2.2%
Cork and articles of corkCork and articles of cork	2.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	2.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.8%
Aluminium and articles thereofAluminium and articles thereof	1.7%
Rubber and articles thereofRubber and articles thereof	1.7%
Organic chemicalsOrganic chemicals	1.7%
Ceramic productsCeramic products	1.6%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	1.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.4%
Ores, slag and ashOres, slag and ash	1.2%
Glass and glasswareGlass and glassware	1.1%
Pharmaceutical productsPharmaceutical products	1.0%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.9%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.9%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.9%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.7%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.7%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.6%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.6%
Man-made staple fibresMan-made staple fibres	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.6%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.6%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.5%
Copper and articles thereofCopper and articles thereof	0.4%
CottonCotton	0.4%
Ships, boats and floating structuresShips, boats and floating structures	0.4%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.4%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.4%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.4%
Miscellaneous chemical productsMiscellaneous chemical products	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.2%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.2%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.2%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.2%
FertilizersFertilizers	0.2%
Man-made filamentsMan-made filaments	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.2%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
Meat and edible meat offalMeat and edible meat offal	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.1%
CerealsCereals	0.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.1%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
See more products	60.5%

Main imports (% of imports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	13.9%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.7%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.8%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	9.2%
Iron and steelIron and steel	4.2%
Plastics and articles thereofPlastics and articles thereof	3.6%
Pharmaceutical productsPharmaceutical products	3.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	2.2%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.9%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.7%
Aluminium and articles thereofAluminium and articles thereof	1.7%
Articles of iron or steelArticles of iron or steel	1.6%
Organic chemicalsOrganic chemicals	1.4%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.3%
Meat and edible meat offalMeat and edible meat offal	1.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.3%
Rubber and articles thereofRubber and articles thereof	1.1%
CerealsCereals	1.1%
Copper and articles thereofCopper and articles thereof	1.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.0%
CottonCotton	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.8%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.8%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.8%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.8%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.8%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.7%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.6%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.6%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.6%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.6%
Glass and glasswareGlass and glassware	0.6%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Man-made filamentsMan-made filaments	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Man-made staple fibresMan-made staple fibres	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Ceramic productsCeramic products	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.2%
Live animalsLive animals	0.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Cork and articles of corkCork and articles of cork	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.2%
FertilizersFertilizers	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Zinc and articles thereofZinc and articles thereof	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.1%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
See more products	52.2%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Prime Minister
Ministry of Agriculture (MADRP)
Ministry of the Economy (ME)
Ministry of Foreign Affairs (MNE)
Business development agency (AICEP)
Ministry of Finance (Inland Revenue)
Statistical Office: I.N.E. Statistics Portugal
Central Bank: Banco de Portugal
Stock Exchange: Bolsa Valores Lisboa/Euronext
Search Engines: Busca
Guianet
NetIndex
Sapo
Economic portals: Eu sou economista
ISCTE-Inst. Sup. Ciencias Trabalho e Empresa
Portal da empresa
Portal Sites

Political outline

Executive Power: The President is the Head of State. He is elected by universal suffrage for a five year term. He is the Commander-in-chief of the Army. After a general election, the leader of the majority party or coalition is usually appointed to be Prime Minister by the President, for a four year term. The Prime Minister is the head of the government and he holds the executive power, which includes implementing laws and running the everyday business of the country. The Council of Ministers is appointed by the President on the recommendation of the Prime Minister. There is also a Council of State which acts as an advisory body to the President.
Legislative Power: Portuguese legislative power is unicameral. The parliament, called Assembly of the Republic, has 230 seats. The members are elected by universal suffrage for a four year term. The executive branch of government is directly or indirectly dependent on the support of parliament often expressed by a vote of confidence. The Prime Minister cannot dissolve the Assembly, but the President can do so and call for an early election if he so wishes. Portuguese citizens enjoy considerable political rights.
Main political parties: Political life in Portugal is mainly dominated by two parties which are: the PS (Socialist Party) and the PSD (Social Democratic Party). The other parties active in the country are:
- The PP (Popular Party) – Christian democrats,
- The PCP (Portuguese Communist Party) – left-wing party,
- Bloco de Esquerda (Left-wing block) - Association of parties left of the Communist party
Current political leaders: President : Anibal CAVACO Silva (since March 2006) - PSD
Prime Minister: Jose SOCRATES (since March 2005) - PS
Next election dates: Presidential elections: January 2011

Indicator of freedom of the press

World Rank:: 18/173
Evolution:: 8 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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