Portugal Overview

Contents extracted from the comprehensive atlas of international trade by Export Entreprises

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Capital City: Lisbon

After a three-year weak economic activity, Portugal seems to have started a slow recovery since 2006. Its GDP growth rate was -1.2% in 2003, it faltered to 1% in 2004 and was 0.5% in 2005. The IMF forecasts a 1.2% growth in 2006. The Portuguese economy remains fragile and the country has the lowest per capita revenue in the euro zone. The economy's competitiveness is being questioned by European subsidies' mid term diminution and by high labour force costs, Portuguese labour force being less competitive than new EU members.

The Agriculture sector is little productive. Agriculture accounts for about 4% of the GDP and provides only a third of the country's needs in food. The main crops are cereals, fruits, vegetables and wine. Porto wine exports represent 1.4% of total exports. Portugal holds huge natural ore resources. The mining sector (copper, tin) as a whole amounts to 6% of the GDP and Portugal is one of the main marble exporters. The manufacturing industry is modern and is essentially made up of SMEs. Its main activity sectors are metallurgy, mechanical engineering, textile, building and civil engineering, plus tourism.

After it became a member of the European Community in 1986, Portugal has been enjoying an extensive expansion of its external trade. Today, Portugal achieves 80% of its trade with the European Union. Its top three trade partners are Spain, Germany and France. Portugal mainly imports vehicles, machinery, capital goods and hydrocarbons.