Economy Portugal
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 the
euro on 1 January 2002 along with 11 other EU member economies.
Economic growth had been above the EU average for much of the past
decade, but fell back in 2001-05. GDP per capita stands at
two-thirds that of the Big Four EU economies. 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. The government faces tough choices in its
attempts to boost Portugal's economic competitiveness while keeping
the budget deficit within the eurozone's 3%-of-GDP ceiling.
GDP (purchasing power parity):
$200.6 billion (2005 est.)
GDP (official exchange rate):
$170.3 billion (2005 est.)
GDP - real growth rate:
0.4% (2005 est.)
GDP - per capita (PPP):
$19,000 (2005 est.)
GDP - composition by sector: agriculture: 5.3% industry: 27.4% services: 67.3% (2005 est.)
Labor force: 5.52 million (2005 est.)
Labor force - by occupation: agriculture: 10% industry: 30% services: 60% (1999 est.)
Unemployment rate:
7.6% (2005 est.)