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Introduction - Portugal:
Location - Portugal:
People - Portugal:
Government - Portugal:
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 2001-06. GDP per capita stands at roughly two-thirds of the EU-25 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 was reduced to 4.6% in 2006. The government faces tough choices in its attempts to boost Portugals economic competitiveness while keeping the budget deficit within the eurozones 3%-of-GDP ceiling.

Gdp purchasing power parity

$210.1 billion (2006 est.)

Gdp official exchange rate

$176.8 billion (2006 est.)

Gdp real growth rate

1.3% (2006 est.)

Gdp per capita ppp

$19,800 (2006 est.)

Gdp composition by sector

agriculture: 6.6%
industry: 28.6%
services: 64.9% (2006 est.)

Labor force

5.58 million (2006)

Labor force by occupation

agriculture: 10%
industry: 30%
services: 60% (2001 est.)

Unemployment rate

7.6% (2006 est.)

Population below poverty line


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 (1997)

Inflation rate consumer prices

2.5% (2006 est.)

Investment gross fixed

20.9% of GDP (2006 est.)


revenues: $83.89 billion
expenditures: $93.09 billion; including capital expenditures of $NA (2006 est.)

Public debt

67.4% of GDP (2006 est.)

Agriculture products

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


textiles and footwear; wood pulp, paper, and cork; metals and metalworking; oil refining; chemicals; fish canning; rubber and plastic products; ceramics; electronics and communications equipment; rail transportation equipment; aerospace equipment; ship construction and refurbishment; wine; tourism

Industrial production growth rate

0.9% (2006 est.)

Electricity production

42.52 billion kWh (2004)

Electricity consumption

46.05 billion kWh (2004)

Electricity exports

2.1 billion kWh (2004)

Electricity imports

8.6 billion kWh (2004)

Oil production

NA bbl/day

Oil consumption

332,000 bbl/day (2004)

Oil exports

43,070 bbl/day (2004)

Oil imports

361,300 bbl/day (2004)

Oil proved reserves

0 bbl

Natural gas production

0 cu m (2005 est.)

Natural gas consumption

4.297 billion cu m (2005 est.)

Natural gas exports

0 cu m (2005 est.)

Natural gas imports

4.46 billion cu m (2005 est.)

Current account balance

-$16.75 billion (2006 est.)


$46.77 billion f.o.b. (2006 est.)

Exports commodities

clothing and footwear, machinery, chemicals, cork and paper products, hides

Exports partners

Spain 26.5%, Germany 12.9%, France 12%, UK 6.7%, US 6.1% (2006)


$67.74 billion f.o.b. (2006 est.)

Imports commodities

machinery and transport equipment, chemicals, petroleum, textiles, agricultural products

Imports partners

Spain 29%, Germany 13.1%, France 8.1%, Italy 5.6%, Netherlands 4.4% (2006)

Reserves of foreign exchange and gold

$9.88 billion (December 2006 est.)

Economic aid donor

ODA, $271 million (1995)

Debt external

$272.2 billion (30 September 2006 est.)

Currency code

euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Exchange rates

euros per US dollar - 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)

Communications - Portugal:
Transportation - Portugal:
Military - Portugal:
This page was last updated on 16 September, 2007
Source: CIA >>>

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