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 its new currency, the euro, on 1 January 2002 along with 11 other EU member economies. Economic growth has been above the EU average for much of the past decade, but GDP per capita stands at just 75% of that of the leading EU economies. The government has failed to reign in a widening deficit and to advance structural reforms needed to boost Portugal's economic competitiveness. 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.

GDP purchasing power parity - $174.1 billion (2001 est.)

GDP - real growth rate 1.7% (2001 est.)

GDP - per capita purchasing power parity - $17,300 (2001 est.)

GDP - composition by sector
agriculture: 3.8%
industry: 30.5%
services: 65.7% (2000)

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) 4.4% (2001 est.)

Labor force 5.1 million (2000)

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

Unemployment rate 4.4% (2001 est.)

Budget
revenues: $45 billion
expenditures: $48 billion, including capital expenditures of $NA (2001 est.)

Industries textiles and footwear; wood pulp, paper, and cork; metalworking; oil refining; chemicals; fish canning; wine; tourism

Industrial production growth rate 2.4% (2001 est.)

Electricity - production 43.242 billion kWh (2000)

Electricity - production by source
fossil fuel: 70.03%
hydro: 25.91%
other: 4.06% (2000)
nuclear: 0%

Electricity - consumption 41.146 billion kWh (2000)

Electricity - exports 3.767 billion kWh (2000)

Electricity - imports 4.698 billion kWh (2000)

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

Exports $24.8 billion (f.o.b., 2001)

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

Exports - partners EU 79% (Spain 19%, Germany 18%, France 13%, UK 11%, Benelux 6%), US 6% (2000)

Imports $37.8 billion (f.o.b., 2001)

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

Imports - partners EU 74% (Spain 25%, Germany 14%, France 11%, Italy 7%, UK 6%), US 3%, Japan 3% (2000)

Debt - external $13.1 billion (1997 est.)

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

Currency euro (EUR); Portuguese escudo (PTE)
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

Currency code EUR; PTE

Exchange rates euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); Portuguese escudos per US dollar - 180.10 (1998), 175.31 (1997)

Fiscal year calendar year

NOTE: The information regarding Portugal on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Portugal Economy 2002 information contained here. All suggestions for corrections of any errors about Portugal Economy 2002 should be addressed to the CIA.