Portugal economy

Portugal facts: Economy

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These facts on Portugal take a brief look at Portugal's economy.

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, and shrank 2.8% in 2009. 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.

Portugal's financial sector has been relatively insulated from the global financial crisis and the government has not spent much on shoring up banks. Nonetheless, the government faces tough choices in its attempts to stimulate the economy, while trying to keep the budget deficit within the euro-zone 3%-of-GDP ceiling. In 2009, the deficit reached 6.7% of GDP.
    
GDP (purchasing power parity): 
$240.9 billion (2009 est.)
country comparison to the world: 50
$247.3 billion (2008 est.)
$247.3 billion (2007 est.)
note: data are in 2009 US dollars
GDP (official exchange rate):
$233.5 billion (2009 est.)
GDP - real growth rate
-2.6% (2009 est.)
country comparison to the world: 159
0% (2008 est.)
2.4% (2007 est.) 
GDP - per capita (PPP):

$22,500 (2009 est.)
country comparison to the world: 56
$23,200 (2008 est.)
$23,200 (2007 est.)
note: data are in 2009 US dollars   
GDP - composition by sector:
agriculture: 2.7%
industry: 23%
services: 74.3% (2009 est.)
    
Labor force:
5.583 million (2009 est.)
country comparison to the world: 67
Labor force - by occupation:
agriculture: 10%
industry: 30%
services: 60% (2007 est.)
Unemployment rate:
9.5% (2009 est.)
country comparison to the world: 113
7.6% (2008 est.)
Population below poverty line: 
18% (2006)
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)
country comparison to the world: 72
35.6 (1995)
    
Investment (gross fixed):
19.5% of GDP (2009 est.)
country comparison to the world: 101
    
Budget:
revenues: $97.06 billion
expenditures: $119.1 billion (2009 est.)
Public debt:
76.8% of GDP (2009 est.)
country comparison to the world: 19
66.3% of GDP (2008 est.)
Inflation rate (consumer prices):
-0.8% (2009 est.)
country comparison to the world: 12
2.6% (2008 est.)
Central bank discount rate:
1.75% (31 December 2009)
country comparison to the world: 126
3% (31 December 2008)
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:

6.12% (31 December 2009 est.)
country comparison to the world: 114
8.35% (31 December 2008 est.)
Stock of narrow money:
$100.9 billion 31 December 2009 est.
$102.7 billion (31 December 2008 est.)
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 circulating within their own borders
Stock of broad money:
$302.3 billion (31 December 2009 est.)
$300.8 billion 31 December 2008 est.)
Stock of domestic credit:
$556.3 billion (31 December 2009 est.)
country comparison to the world: 24
$490.8 billion (31 December 2008 est.)
Market value of publicly traded shares:
$NA (31 December 2009)
country comparison to the world: 45
$68.71 billion (31 December 2008)
$132.3 billion (31 December 2007)
    
Agriculture - products:
grain, potatoes, tomatoes, olives, grapes; sheep, cattle, goats, pigs, 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: 
-7.7% (2009 est.)
country comparison to the world: 131
Electricity - production:

44.47 billion kWh (2007 est.)
country comparison to the world: 53  
Electricity - consumption:
48.78 billion kWh (2007 est.)
country comparison to the world: 47
Electricity - exports:
1.313 billion kWh (2008 est.)
Electricity - imports:
10.74 billion kWh (2008 est.)
Oil - production:
4,721 bbl/day (2009 est.)
country comparison to the world: 95
Oil - consumption: 
272,200 bbl/day (2009 est.)
country comparison to the world: 49
Oil - exports:
53,660 bbl/day (2008 est.)
country comparison to the world: 78
Oil - imports:

323,000 bbl/day (2008 est.)
country comparison to the world: 32
Oil - proved reserves: 
0 bbl
country comparison to the world: 135
Natural gas - production:
NA (2008 est.)
Natural gas - consumption
:
4.846 billion cu m (2009 est.)
country comparison to the world: 59
Natural gas - exports:

0 cu m (2008 est.)
country comparison to the world: 141
Natural gas - imports:

4.895 billion cu m (2009 est.)
country comparison to the world: 32
Natural gas - proved reserves:

0 cu m (1 January 2010 est.)
country comparison to the world: 110
    
Current account balance:

-$23.95 billion (2009 est.)
country comparison to the world: 181
-$31.85 billion (2008 est.)
Exports:

$44.49 billion (2009 est.)
country comparison to the world: 49
$57.87 billion (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 26.25%, Germany 12.99%, France 12.04%, Angola 7.21%, UK 5.54% (2009)
Imports:

$68.9 billion (2009 est.)
country comparison to the world: 35
$91.66 billion (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 31.58%, Germany 12.41%, France 8.58%, Italy 5.55%, Netherlands 5.31% (2009)
Reserves of foreign exchange and gold:

$16.03 billion (31 December 2009 est.)
country comparison to the world: 59
$11.95 billion (31 December 2008 est.)
Debt - external:

$507 billion (30 June 2009)
country comparison to the world: 19
$484.7 billion (31 December 2008)
Stock of direct foreign investment - at home:

$102.6 billion (31 December 2009 est.)
country comparison to the world: 32
$99.82 billion (31 December 2008 est.)
Stock of direct foreign investment - abroad
:
$63.64 billion (31 December 2009 est.)
country comparison to the world: 27
$63.64 billion (31 December 2008 est.)
    
Exchange rates:

euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)

CIA World Factbook / Expatica
    

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