Portugal Economy
Is Portugal a wealthy country?
Portugal's economic history is deeply intertwined with its colonial past, maritime prowess, and periods of economic hardship. During the Age of Discovery, during the 15th and 16th centuries, Portugal established a vast overseas empire, enriching the nation through trade in spices, gold, and other commodities. However, the decline of its empire and the devastating earthquake of 1755 ushered in a period of economic stagnation.
Modern Economic Evolution:
In the 20th century, Portugal underwent significant economic transformations. Joining the European Union in 1986 paved the way for economic integration and development. The country embraced structural reforms, privatization, and investments in infrastructure, leading to robust economic growth during the 1990s and early 2000s. However, Portugal faced challenges such as high public debt, low productivity, and unemployment, exacerbated by the global financial crisis 2008.
Post-Crisis Recovery:
In response to the crisis, Portugal implemented austerity measures and pursued fiscal consolidation, albeit with social costs. The country underwent structural reforms in labor markets, pensions, and the financial sector, supported by external financial assistance from the EU and IMF. Despite initial hardships, Portugal's economy rebounded, with improved competitiveness, export growth, and a gradual decline in unemployment.
Current Economic Landscape:
According to the latest data, Portugal's economy continues to show resilience amidst the challenges posed by the COVID-19 pandemic. The government's swift response, including fiscal stimulus measures and support for businesses, helped cushion the crisis's impact. However, Portugal faces persistent structural issues, including an aging population, low productivity growth, and regional disparities.
Key Economic Indicators:
GDP Growth: Portugal's GDP growth has shown recovery, albeit at a moderate pace. In recent years, growth rates have hovered around 2%, driven by domestic consumption, exports, and tourism.
Unemployment: While declining, unemployment rates remain above the EU average. Efforts to address youth unemployment and skills mismatches are ongoing.
Public Debt: Portugal's public debt, though high, has gradually decreased from its peak. Continued fiscal discipline and debt sustainability are priorities for the government.
External Trade: Portugal maintains a positive trade balance, with exports accounting for a significant portion of GDP. Key export sectors include automotive, textiles, and agro-food products.
Portugal Economy Data
What is the GDP of Portugal?
| Currency Name and Code | Euro (EUR) |
| GDP - Gross Domestic Product (PPP) | $331,640,000,000 (USD) |
| GDP - official exchange rate | $197,500,000,000 (USD) |
| GDP - real growth rate | 1.6% |
| GDP Per Capita | $27,800.00 (USD) |
| GDP by Sector- agriculture | 2.3% |
| GDP by Sector- Industry | 21.6% |
| GDP by Sector- services | 76.1% |
| GDP - composition, by end use |
household consumption: 66.2% government consumption: 18.5% investment in fixed capital: 15.3% investment in inventories: 0.3% exports of goods and services: 41.4% imports of goods and services: -41.7% |
| Population Below Poverty Line | 18% |
| Inflation Rate | 1.1% |
| Labor Force | 5,570,000 |
| Labor Force By Occupation- agriculture | 11.7% |
| Labor Force By Occupation- industry | 28.5% |
| Labor Force By Occupation- services | 59.8% |
| Unemployment Rate | 10.7% |
| Fiscal Year | calendar year |
| Annual Budget | $93,610,000,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -5.1% |
| Public Debt (% of GDP) | 69.4% |
| Taxes and other revenues - percent of GDP | 43.5% |
| Major Industries | textiles and footwear; wood pulp, paper, and cork; metalworking; oil refining; chemicals; fish canning; wine; tourism |
| Industrial Growth Rate | 0.9% |
| Agriculture Products | grain, potatoes, olives, grapes; sheep, cattle, goats, poultry, beef, dairy products |
| Exchange Rate per US Dollar | euro (EUR) |
| Child Labor - % of children ages 5-14 | 3% |
| Child Labor - # of children ages 5-14 | 36,569 |
| Child Labor - note | note: data represents children ages 6-14 |
| Commercial Bank Prime Lending Rate | 6% |