Economy - overview Portugal's short-term economic fundamentals remain strong: 1997 was marked by a reduction in inflation, a rise in the GDP growth rate, a reduction in the fiscal deficit, and a lowering of interest rates. The Socialist government's primary economic goal is to place Portugal in the initial group of countries adopting the single European currency; Lisbon looks well positioned to be in the first tranche of EMU countries. As for the long run, Portugal is increasing its infrastructure spending, in anticipation of hosting the world's International Exposition, which began in May 1998. Lisbon also is working to modernize its capital plant and increase competitiveness in hope of moving up closer to the EU average.

GDP purchasing power parity - $149.5 billion (1997 est.)

GDP - real growth rate 3.3% (1997 est.)

GDP - per capita purchasing power parity - $15,200 (1997 est.)

GDP - composition by sector
agriculture: 6%
industry: 36%
services: 58% (1995 est.)

Inflation rate - consumer price index 2.3% (1997 est.)

Labor force
total: 4.53 million (1996 est.)
by occupation: services 56%, manufacturing 23%, agriculture, forestry, fisheries 11%, construction 8%, utilities 1%, mining 1% (1995)

Unemployment rate 7% (January 1998)

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 2.2% (1996 est.)

Electricity - capacity 8.831 million kW (1995)

Electricity - production 31.446 billion kWh (1995)

Electricity - consumption per capita 3,072 kWh (1995)

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

Exports
total value: $23.8 billion (f.o.b., 1996)
commodities: clothing and footwear, machinery, cork and paper products, hides
partners: EU 76%, other developed countries 9% (US 5%)

Imports
total value: $33.9 billion (c.i.f., 1996)
commodities: machinery and transport equipment, agricultural products, chemicals, petroleum, textiles
partners: EU 72%, other developed countries 8% (US 3%), less developed countries 17% (1995)

Debt - external $13.1 billion (1997 est.)

Economic aid
donor: ODA, $220 million (1996)
recipient: ODA, $70 million (1993)

Currency 1 Portuguese escudo (Esc) = 100 centavos

Exchange rates Portuguese escudos (Esc) per US$1 - 185.81 (January 1998), 175.31 (1997), 154.24 (1996), 151.11 (1995), 165.99 (1994), 160.80 (1993)

Fiscal year calendar year

NOTE: The information regarding Portugal on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Portugal Economy 1998 information contained here. All suggestions for corrections of any errors about Portugal Economy 1998 should be addressed to the CIA.