Economy - overview: Portugal is an upcoming capitalist economy with a per capita gross domestic product two-thirds that of the four big West European economies. In 1999, it continued to enjoy sturdy economic growth, falling interest rates, and low unemployment. The country qualified for the European Monetary Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on 1 January 1999. Portugal's inflation rate for 1999, 2.4%, was comfortably low. The country continues to run a trade deficit and a balance of payments[?] deficit. The government is working to modernize capital plant and increase the country's competitiveness in the increasingly integrated world markets. Growth is expected to remain stable in 2000 as the economic integration of Europe proceeds. Improvement in the education sector is critical to the catch-up process.
Membership in the European Union (EU) contributed to stable economic growth, largely through increased trade ties and an inflow of funds to improve the country's infrastructure. After a recession in 1993, the economy grew at an average annual rate of 3.3%, well above EU averages. In order to qualify for the European Monetary Union (EMU), Portugal agreed to cut its fiscal deficit and undertake structural reforms. The EMU brought to Portugal exchange rate stability, falling inflation, and falling interest rates. Falling interest rates, in turn, lowered the cost of public debt and helped the country achieve its fiscal targets.
Household debt has expanded rapidly. The European Commission, OECD, and others have advised the Portuguese Government to exercise more fiscal restraint. Portugal's public debt exceeded 3 % of GNP in 2001, the EU's self-imposed limit, and left the country open to either EU sanctions or tighter financial supervision. The overall rate of growth slowed in late 2001 and into 2002, making fiscal austerity that much more painful to implement. Portugal will be forced into greater self-sufficiency when EU funds are likely to be discontinued in 2006. In addition, EU expansion into eastern Europe also will erase Portugal's key competitive advantage, low labor costs.
Portugal's economy is based on traditional industries such as textiles, clothing, footwear, cork and wood products, beverages (wine), porcelain and earthenware, and glass and glassware. In addition, the country has increased its role in Europe's automotive sector. Services, particularly tourism, are playing an increasingly important role in the economy.
Portugal has made significant progress in raising its standard of living to that of its EU partners. GDP per capita on a purchasing power parity basis rose from 51% of the EU average in 1985 to 78% in early 2002. Unemployment stood at 4.1% at the end of 2001, which is low compared to the EU average. Real wages are flexible, but high social costs and severance packages raise fixed labor costs and make new job creation difficult.
GDP: purchasing power parity - $151.4 billion (1999 est.)
GDP - real growth rate: 3.2% (1999 est.)
GDP - per capita: purchasing power parity - $15,300 (1999 est.)
GDP - composition by sector:
agriculture:
4%
industry:
36%
services:
60% (1999 est.)
Population below poverty line: NA%
Household income or consumption by percentage share:
lowest 10%:
NA%
highest 10%:
NA%
Inflation rate (consumer prices): 2.4% (1999 est.)
Labor force: 4.75 million (1998 est.)
Labor force - by occupation: services 60%, industry 30%, agriculture 10% (1999 est.)
Unemployment rate: 4.6% (1999 est.)
Budget:
revenues:
$48 billion
expenditures:
$52 billion, including capital expenditures of $7.4 billion (1996 est.)
Industries: textiles and footwear; wood pulp, paper, and cork; metalworking[?]; oil refining[?]; chemicals; fish canning[?]; wine; tourism
Industrial production growth rate: 2.9% (1999 est.)
Electricity - production: 38.581 billion kWh (1998)
Electricity - production by source:
fossil fuel:
63.14%
hydro:
33.46%
nuclear:
0%
other:
3.4% (1998)
Electricity - consumption: 36.18 billion kWh (1998)
Electricity - exports: 3.7 billion kWh (1998)
Electricity - imports: 4 billion kWh (1998)
Agriculture - products: grain, potatoes, olives, grapes; sheep, cattle, goats, poultry, beef, dairy products
Exports: $25 billion (f.o.b., 1998)
Exports - commodities: clothing and footwear, machinery, chemicals, cork and paper products, hides[?]
Exports - partners: EU 82% (Germany 20%, Spain 16%, France 14%, UK 12% Netherlands 5%, Benelux 5%, Italy), US 5% (1998)
Imports: $34.9 billion (f.o.b., 1998)
Imports - commodities: machinery and transport equipment, chemicals, petroleum, textiles, agricultural products
Imports - partners: EU 77% (Spain 24%, Germany 15%, France 11%, Italy 8%, UK 7%, Netherlands 5%), US, Japan (1998)
Debt - external: $13.1 billion (1997 est.)
Economic aid - donor: ODA, $271 million (1995)
Currency:
1 Portuguese escudo[?] (Esc) = 100 centavos
Note: This information is outdated; since January 1, 2002, Portugal is using the Euro.
Exchange rates:
euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); Portuguese escudos (Esc) per US$1 - 172.78 (January 1999), 180.10 (1998), 175.31 (1997), 154.24 (1996), 151.11 (1995)
note:
on 1 January 1999, the EU introduced a common currency that is now being used by financial institutions in some member countries at a fixed rate of 200.482 escudos per euro; the euro will replace the local currency in consenting countries for all transactions in 2002
Fiscal year: calendar year
See also:
Common misspelling and questions (FAQ)
conomy-of-portugal eonomy-of-portugal ecnomy-of-portugal ecoomy-of-portugal econmy-of-portugal econoy-of-portugal econom-of-portugal economyof-portugal economy-f-portugal economy-o-portugal economy-ofportugal economy-of-ortugal economy-of-prtugal economy-of-potugal economy-of-porugal economy-of-portgal economy-of-portual economy-of-portugl economy-of-portuga ceonomy-of-portugal eocnomy-of-portugal ecnoomy-of-portugal ecoonmy-of-portugal econmoy-of-portugal econoym-of-portugal econom-yof-portugal economyo-f-portugal economy-fo-portugal economy-o-fportugal economy-ofp-ortugal economy-of-oprtugal economy-of-protugal economy-of-potrugal economy-of-porutgal economy-of-portgual economy-of-portuagl economy-of-portugla economy-of-portuga eeconomy-of-portugal ecconomy-of-portugal ecoonomy-of-portugal econnomy-of-portugal econoomy-of-portugal econommy-of-portugal economyy-of-portugal economy--of-portugal economy-oof-portugal economy-off-portugal economy-of--portugal economy-of-pportugal economy-of-poortugal economy-of-porrtugal economy-of-porttugal economy-of-portuugal economy-of-portuggal economy-of-portugaal economy-of-portugall 3conomy-of-portugal wconomy-of-portugal sconomy-of-portugal 4conomy-of-portugal dconomy-of-portugal 4conomy-of-portugal rconomy-of-portugal dconomy-of-portugal edonomy-of-portugal exonomy-of-portugal efonomy-of-portugal efonomy-of-portugal evonomy-of-portugal ec9nomy-of-portugal ecinomy-of-portugal ecknomy-of-portugal ec0nomy-of-portugal eclnomy-of-portugal ec0nomy-of-portugal ecpnomy-of-portugal eclnomy-of-portugal ecohomy-of-portugal ecobomy-of-portugal ecojomy-of-portugal ecojomy-of-portugal ecomomy-of-portugal econ9my-of-portugal econimy-of-portugal econkmy-of-portugal econ0my-of-portugal econlmy-of-portugal econ0my-of-portugal econpmy-of-portugal econlmy-of-portugal econojy-of-portugal econony-of-portugal econoky-of-portugal econoky-of-portugal econo,y-of-portugal econom6-of-portugal economt-of-portugal economg-of-portugal econom7-of-portugal economh-of-portugal econom7-of-portugal economu-of-portugal economh-of-portugal economy0of-portugal economypof-portugal economy[of-portugal economy-9f-portugal economy-if-portugal economy-kf-portugal economy-0f-portugal economy-lf-portugal economy-0f-portugal economy-pf-portugal economy-lf-portugal economy-or-portugal economy-od-portugal economy-oc-portugal economy-ot-portugal economy-ov-portugal economy-ot-portugal economy-og-portugal economy-ov-portugal economy-of0portugal economy-ofpportugal economy-of[portugal economy-of-0ortugal economy-of-oortugal economy-of-lortugal economy-of--ortugal economy-of-;ortugal economy-of--ortugal economy-of-[ortugal economy-of-;ortugal economy-of-p9rtugal economy-of-pirtugal economy-of-pkrtugal economy-of-p0rtugal economy-of-plrtugal economy-of-p0rtugal economy-of-pprtugal economy-of-plrtugal economy-of-po4tugal economy-of-poetugal economy-of-podtugal economy-of-po5tugal economy-of-poftugal economy-of-po5tugal economy-of-pottugal economy-of-poftugal economy-of-por5ugal economy-of-porrugal economy-of-porfugal economy-of-por6ugal economy-of-porgugal economy-of-por6ugal economy-of-poryugal economy-of-porgugal economy-of-port7gal economy-of-portygal economy-of-porthgal economy-of-port8gal economy-of-portjgal economy-of-port8gal economy-of-portigal economy-of-portjgal economy-of-portutal economy-of-portufal economy-of-portuval economy-of-portuyal economy-of-portubal economy-of-portuyal economy-of-portuhal economy-of-portubal economy-of-portugql economy-of-portugwl economy-of-portugzl economy-of-portugwl economy-of-portugsl economy-of-portugzl economy-of-portugao economy-of-portugak economy-of-portuga, economy-of-portugap economy-of-portuga. economy-of-portugap economy-of-portuga; economy-of-portuga. economy-of-poryugal economy-of-portyugal economy-of-portugalsAnd sue to me to be your advocate.<178> ZABINA. And sue to thee! I tell thee, shameless girl, How lik'st thou her, Ebea? will she serve? EBEA. Madam, she thinks perhaps she is too fine; And make her dainty fingers fall to work. ZENOCRATE. Hear'st thou, Anippe, how thy drudge doth talk? Both for their sauciness shall be employ'd For we will scorn they should come near ourselves. ANIPPE. Yet sometimes let your highness send for them [They sound to the battle within.] ZENOCRATE. Ye gods and powers that govern Persia, Now strengthen him against the Turkish Bajazeth, Pursu'd by hunters, fly his angry looks, And make him rain down murdering shot from heaven, That dare<179> to manage arms with him When first he warr'd against the Christians! And Tamburlaine is lord of Africa. ZABINA. Thou art deceiv'd. I heard the trumpets sound And led them captive into Africa. Prepare thyself to live and die my slave. ZENOCRATE. If Mahomet should come from heaven and swear Yet should he not persuade me otherwise Deliver them into my treasury. ZENOCRATE. Now let me offer to my gracious lord And crown me emperor of Africa. ZABINA. No, Tamburlaine; though now thou gat<182> the best, .