Portugal/Economy

Economy - overview: Portugal is an upcoming capitalist economy with a per capita GDP two-thirds that of the four big West European economies. In 1999, it continued to enjoy sturdy economic growth, falling interest rates, and low unemployment. The country qualified for the European Monetary Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on 1 January 1999. Portugal's inflation rate for 1999, 2.4%, was comfortably low. The country continues to run a trade deficit and a balance of payments deficit. The government is working to modernize capital plant and increase the country's competitiveness in the increasingly integrated world markets. Growth is expected to remain stable in 2000 as the economic integration of Europe proceeds. Improvement in the education sector is critical to the catch-up process.

GDP: purchasing power parity - $151.4 billion (1999 est.)

GDP - real growth rate: 3.2% (1999 est.)

GDP - per capita: purchasing power parity - $15,300 (1999 est.)

GDP - composition by sector:
agriculture: 4%
industry: 36%
services: 60% (1999 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 2.4% (1999 est.)

Labor force: 4.75 million (1998 est.)

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

Unemployment rate: 4.6% (1999 est.)

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: 2.9% (1999 est.)

Electricity - production: 38.581 billion kWh (1998)

Electricity - production by source:
fossil fuel: 63.14%
hydro: 33.46%
nuclear: 0%
other: 3.4% (1998)

Electricity - consumption: 36.18 billion kWh (1998)

Electricity - exports: 3.7 billion kWh (1998)

Electricity - imports: 4 billion kWh (1998)

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

Exports: $25 billion (f.o.b., 1998)

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

Exports - partners: EU 82% (Germany 20%, Spain 16%, France 14%, UK 12% Netherlands 5%, Benelux 5%, Italy), US 5% (1998)

Imports: $34.9 billion (f.o.b., 1998)

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

Imports - partners: EU 77% (Spain 24%, Germany 15%, France 11%, Italy 8%, UK 7%, Netherlands 5%), US, Japan (1998)

Debt - external: $13.1 billion (1997 est.)

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

Currency: 1 Portuguese escudo (Esc) = 100 centavos

Exchange rates: euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); Portuguese escudos (Esc) per US$1 - 172.78 (January 1999), 180.10 (1998), 175.31 (1997), 154.24 (1996), 151.11 (1995)
note: on 1 January 1999, the EU introduced a common currency that is now being used by financial institutions in some member countries at a fixed rate of 200.482 escudos per euro; the euro will replace the local currency in consenting countries for all transactions in 2002

Fiscal year: calendar year