Economy ———-
Economic overview: Portugal's short-term economic fundamentals are strong - the economy grew by 2.8% in 1995, with similar growth expected in 1996 and 1997, and unemployment is among the lowest in the EU. The Socialist government has pledged its dedication both to meeting the Maastricht monetary convergence criteria and to increasing social spending, including provision of a guaranteed minimum income. The government's 1996 budget, passed in March 1996, includes a budget deficit target of 4.2%, to be attained largely through cuts in non-social-service government spending and income from an ambitious privatization program. As for the long run, Portugal hopes for a steady modernization of its capital plant, its work force, and its infrastructure in order to catch up with the productivity and income levels of the Big Four economies of Western Europe.
GDP: purchasing power parity - $116.2 billion (1995 est.)
GDP real growth rate: 2.8% (1995 est.)
GDP per capita: $11,000 (1995 est.)
GDP composition by sector: agriculture: 6% industry: 35.8% services: 58.2% (1995 est.)
Inflation rate (consumer prices): 4.6% (1995 est.)
Labor force: 4.24 million (1994 est.) by occupation: services 54.5%, manufacturing 24.4%, agriculture, forestry, fisheries 11.2%, construction 8.3%, utilities 1.0%, mining 0.5% (1992)
Unemployment rate: 7.1% (1995 est.)
Budget:
revenues: $31 billion
expenditures: $41 billion, including capital expenditures of $NA
(1994)