Portugal Economy 2007

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 Portugal's economic competitiveness while keeping the budget deficit within the eurozone's 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: 8%
industry: 25.8%
services: 66.2% (2006 est.)

Labor force:
5.59 million (2006 est.)

Labor force - by occupation:
agriculture: 10%
industry: 30%
services: 60% (2001 est.)

Unemployment rate:
7.6% (2006 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:
38.5 (1997)

Inflation rate (consumer prices):
3.1% (2006 est.)

Investment (gross fixed):
20.9% of GDP (2006 est.)

Budget:
revenues: $81.9 billion
expenditures: $89.49 billion (2006 est.)

Public debt:
65.3% of GDP (2006 est.)

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

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:
0.9% (2006 est.)

Electricity - production:
43.69 billion kWh (2005)

Electricity - consumption:
46.3 billion kWh (2005)

Electricity - exports:
2.802 billion kWh (2005)

Electricity - imports:
9.626 billion kWh (2005)

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 (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
4.125 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
4.281 billion cu m (2005)

Current account balance:
$-18.28 billion (2006 est.)

Exports:
$43.58 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)

Imports:
$64.45 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)

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

Reserves of foreign exchange and gold:
$9.883 billion (2006 est.)

Debt - external:
$368.2 billion (2006 est.)

Stock of direct foreign investment - at home:
$85.52 billion (2006 est.)

Stock of direct foreign investment - abroad:
$54.85 billion (2006 est.)

Market value of publicly traded shares:
$66.98 billion (2005)

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)