Portugal Economy 2008

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 2001-07. 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 estimates it at 3% in 2007 - a year ahead of Portugal's targeted schedule - thanks partly to deficit-cutting efforts. Nonetheless, 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):
$232 billion (2007 est.)

GDP (official exchange rate):
$184.2 billion (2007 est.)

GDP - real growth rate:
1.7% (2007 est.)

GDP - per capita (PPP):
$21,800 (2007 est.)

GDP - composition by sector:
agriculture: 7.9%
industry: 25.9%
services: 66.2% (2007 est.)

Labor force:
5.62 million (2007 est.)

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

Unemployment rate:
8% (2007 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 (2005)

Inflation rate (consumer prices):
2.4% (2007 est.)

Investment (gross fixed):
21% of GDP (2007 est.)

Budget:
revenues: $92.35 billion
expenditures: $99.59 billion (2007 est.)

Public debt:
65.8% of GDP (2007 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:
1.8% (2007 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:
4,032 bbl/day NA bbl/day (2005)

Oil - consumption:
335,400 bbl/day (2005)

Oil - exports:
43,070 bbl/day (2004)

Oil - imports:
361,300 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

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)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
-$18.53 billion (2007 est.)

Exports:
$50.72 billion f.o.b. (2007 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:
$72.19 billion f.o.b. (2007 est.)

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:
$10.4 billion (31 December 2007 est.)

Debt - external:
$415.5 billion (30 June 2007)

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 - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)