Portugal Economy - 2005

Economy - overview:
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past decade, 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 past decade, but fell back in 2001-04. GDP per capita stands at two-thirds that of the Big Four EU economies. 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 government faces tough choices in its attempts to boost Portugal's economic competitiveness while keeping the budget deficit within the eurozone's 3%-of-GDP ceiling.

GDP:
purchasing power parity - $188.7 billion (2004 est.)

GDP - real growth rate:
1.1% (2004 est.)

GDP - per capita:
purchasing power parity - $17,900 (2004 est.)

GDP - composition by sector:
agriculture: 5.9%
industry: 30.2%
services: 63.9% (2004 est.)

Labor force:
5.48 million (2004 est.)

Labor force - by occupation:
agriculture 10%, industry 30%, services 60% (1999 est.)

Unemployment rate:
6.5% (2004 est.)

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: 3.1%
highest 10%: 28.4% (1995 est.)

Distribution of family income - Gini index:
35.6 (1994-95)

Inflation rate (consumer prices):
2.1% (2004 est.)

Investment (gross fixed):
22.3% of GDP (2004 est.)

Budget:
revenues: $74.38 billion
expenditures: $79.86 billion, including capital expenditures of NA (2004 est.)

Public debt:
61.5% of GDP (2004 est.)

Agriculture - products:
grain, potatoes, olives, grapes; sheep, cattle, goats, poultry, beef, dairy products

Industries:
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:
1.1% (2004 est.)

Electricity - production:
43.28 billion kWh (2002)

Electricity - consumption:
42.15 billion kWh (2002)

Electricity - exports:
3.4 billion kWh (2002)

Electricity - imports:
5.3 billion kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
339,800 bbl/day (2001 est.)

Oil - exports:
28,830 bbl/day (2001)

Oil - imports:
357,300 bbl/day (2001)

Natural gas - production:
0 cu m (2001 est.)

Natural gas - consumption:
2.542 billion cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
2.553 billion cu m (2001 est.)

Current account balance:
$-8.12 billion (2004 est.)

Exports:
$37.68 billion f.o.b. (2004 est.)

Exports - commodities:
clothing and footwear, machinery, chemicals, cork and paper products, hides

Exports - partners:
Spain 24.8%, France 14%, Germany 13.5%, UK 9.6%, US 6%, Italy 4.3%, Belgium 4.1% (2004)

Imports:
$52.1 billion f.o.b. (2004 est.)

Imports - commodities:
machinery and transport equipment, chemicals, petroleum, textiles, agricultural products

Imports - partners:
Spain 29.3%, Germany 14.4%, France 9.7%, Italy 6.1%, Netherlands 4.6%, UK 4.5% (2004)

Reserves of foreign exchange and gold:
$12.3 billion (2004 est.)

Debt - external:
$274.7 billion (2004 est.)

Economic aid - donor:
ODA, $271 million (1995)

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 - 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000)