Portugal Basic Data

Portugal - Basic Data
aicep Portugal Global

Portugal - Basic Data (March 2011)
Index
1. Background
1.1 Geography
1.2 Population and language
1.3 Summary
2. Politics
3. Infrastructures
4. Economy
4.1 Economic structure
4.2 Current economic situation and outlook
5. International trade
6. International investment
6.1 Foreign direct investment in Portugal
6.2 Portuguese foreign direct investment
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Background
The coast of mainland Portugal is mostly unbroken, except for

two major estuaries (Tagus and Sado). There are also small bays
Mainland Portugal is geographically located in Europes West

Coast, on the Iberian Peninsula. It is bordered by Spain to the
North and East and by the Atlantic Ocean to the West and South,
making it a privileged geo strategic location between Europe,
America and Africa.
In addition to the mainland, Portugals territory also includes
the Autonomous Regions of the Azores and Madeira, two
archipelagos located in the Atlantic Ocean.
Portuguese borders have remained unchanged since the XIII
Century, making Portugal one of the oldest countries in the
(Peniche, Sines and Lagos) and lagoons (Vouga-Aveiro, bidos

and Faro). Headlands are few in number, small in size but of great
beauty: these include the Capes of Mondego, Carvoeiro, Roca,
Espichel, Sines, S. Vicente and Santa Maria.
Portugals agreeable climate offers mild winters and pleasant
summers. The wettest months are November and December,
whilst the driest are from April to September.
Population and language
world, with nearly 900 years of history that clearly demonstrates

its strong identity and internal cohesion.
Portugals population is estimated at 10.6 million people, of

which more than half are economically active. The demographic
concentration is higher near the coastal areas, with Lisbon (the
Geography
capital city) and Porto showing the highest population density.
On mainland Portugal, the Tagus River, Portugals largest river,

divides the high mountainous lands and plateaus of the North,
The Portuguese language is spoken by more than 200 million
from the low lying plains of the South. Also the flat coastal area
people spread over all continents: Europe, Africa, America and
contrasts with that of the inland. The highest peaks are found in
Asia. This diversity greatly contributes to the strong historical and
a mountainous range in the centre of the country, of which Serra
cultural ties that Portugal has with the world.
da Estrela is the highest with 1,991 m. On the archipelagos, Pico

(2,351 m) is the highest peak in the Azores, while Pico Ruivo
(1,862 m) is the highest peak in Madeira.
Summary
Area:
92,207.4a sq km
Population (thousands):
10,636 (2010)
Working population
(thousands):
5,581 (2010)
Population density
(inhabit./sq km):
115.4 (2010)
Official designation:
Republic of Portugal
Capital:
Lisbon (2.1 million inhabit. metropolitan area)
District Capitals:
Aveiro, Beja, Braga, Bragana, Castelo Branco,

Coimbra, vora, Faro, Funchal (in Madeira),
Guarda, Leiria, Ponta Delgada (in the Azores),
Portalegre, Porto, Santarm, Setbal, Viana do
Castelo, Vila Real and Viseu.
Main religion:
Roman Catholic
Language:
Portuguese
Currency:
Euro (in units of 100 cents)

EUR = 200.482 PTE (fixed parity 1/01/99)
EUR = 1.3257 USD (average rate in 2010)
GDP at market prices:
172,837 million EUR (2010)
GDP per capita:
16,300 EUR (2010)
Source: INE - Instituto Nacional de Estatstica; Banco de Portugal

Note: (a) INE Portuguese Statistical Yearbook 2010

Politics
Maritime Routes: Mainland Portugal has nine major ports: Viana

do Castelo and Leixes, in the North; Aveiro and Figueira da Foz,
The Republic of Portugal is a Parliamentary democracy, based
in the Centre; Lisbon and Setbal in the Lisbon region; Sines in
on the respect and the effective guarantees for fundamental
the Alentejo; Faro and Portimo in the Algarve. The Autonomous
rights and freedoms and the separation and interdependence of
Region of the Azores has five ports and the Autonomous Region
powers. Under the Portuguese Constitution, sovereign powers
of Madeira has three. Only Lisbon and Leixes on the mainland
are vested in the President of the Republic, the Assembly of the
offer passenger services, though the number of passengers
Republic, the Government and the Courts.
embarking and disembarking at Leixes port is insignificant. The

port infrastructure is thus primarily geared to handling goods.
The President of the Republic is the Head of State, elected by
This is particularly so at Sines (39.3% of total in 2010), Leixes
direct universal suffrage for a five year term, with a maximum of
(22.4%) and Lisbon (18.5%).
two terms. The current President of the Republic is Anbal Cavaco

Silva who was re-elected on 23rd January 2011.
Economy
Legislative power lies with the Parliament (Assembly of the
Economic structure
Republic) represented by 230 members which are elected by

popular vote to serve a four year term.
Executive power lies with the Government, headed by the Prime
Minister, the Ministers and the Secretaries of State. Jos Socrates,
Portugals Prime Minister and the leader of the Socialist Party
won the legislative elections in 2009.
The Portuguese judicial system consists of several categories of
Court, independent of each other, with their own structure and
rules. Two of these categories are composed only by one Court
Following the trend of its European partners, over the last decades
one of the most important characteristics of the structure of the
Portuguese economy is the increase in the services sector. In 2010,
agriculture, forestry and fishing generated only 2.7% of GVA
(compared with 24% in 1960), and 10.9% of employment, while
industry, construction, energy and water represented 22.8% of GVA
and 27.7% of employment. The services sector generated 74.5% of
GVA and represented 61.4% of the labour force.
(the Constitutional Court and the Court of Auditors). The Judicial,
Apart from a greater focus on services, there has also been significant
Administrative and Fiscal Courts are numerous, hierarchically
change in manufacturing, which has undergone a modernization
structured and respond to a Supreme Court. In addition, there are
process. Traditional manufacturing has been gradually replaced by
Maritime Courts, Courts of Arbitration and Justices of the Peace.
new activity sectors that offer a larger incorporation of technology

and that have contributed to the growth of the Portuguese economy,
Infrastructures
namely motor vehicles and parts thereof, electronics, energy,

pharmaceutical and the new technologies.
Road Infrastructures: Portugal has one of the most developed

road networks in Europe, comprising of motorways (AE), main roads
(IP), secondary roads (IC), national roads (EN) and municipal routes.
In 2009, the mainland road network reached 13,112 km, of which
2,705 km was motorway, more than 1/5 of the total road network.
Portugals geographic position also impacts on the growth of the

services sector. The mild Mediterranean climate regulated by the
influence of the Atlantic, together with its extensive coastline, are
significant factors driving the growth of the tourism industry.
GVA Breakdown 2010
Rail Network: The rail network comprises 3,600 km (2,842 km
2.7%
with rail traffic) providing North-South connection down the

coastline and East-West across the country. Railway network
22.8%
density tends to be more significant in regions with a higher

population concentration.
Airports: There are 14 airports. On the mainland the three major
international airports are located in the coastal cities of Lisbon,
Porto and Faro. A new airport is to be built in the Lisbon region.
74.5%
Due to the isolation of the Autonomous Regions there are a

larger number of airports. The Azores have nine and Madeira has
two. Most international airlines serve the countrys main airports.
The Portuguese airline is TAP Portugal.
Services
Industry, construction,
energy and water
Source: INE Instituto Nacional de Estatstica
Agriculture, forestry,
and fishing
Note: GVA - Gross Value-Added

initiated the rise allowing progress towards a more sustainable
Employment Breakdown - 2010
economy; Portugal was seriously affected by the international

crisis, that strongly influenced the countrys economic activity
10.9%
performance since 2008, culminating with the contraction of

2.6% of GDP in 2009.
However, the gradual improvement of demand on a global scale
and of the economy of our main trade partners, which started at
27.7%
the end of 2009, allowed Portugal to retake a growth trajectory
61.4%
in 2010 (GDP rose 1.4% during the same period). The main
reason for that recovery was the performance of our exports.
Services
Industry, construction,
energy and water
In an uncertain financial market and with the negative effects of
Agriculture, forestry
and fishing
the risk of national debt default in accessing finance, the evolution

of the Portuguese economy continues to be determined by the
Source: INE Instituto Nacional de Estatistica
necessity of budget consolidation and by the strengthening of
Current economic situation and outlook
the process of adjustment of the macroeconomic imbalance,
After significant progress in the modernization of the economy

over the last years, in conjunction with the implementation of
consolidating budget measures and structural reforms which
Economic Indicators
GDP at market prices
Per capita
2008
2009
2010
2011a
2012a
Million EUR
160,273
168,737
172,022
168,074
172,837
174,100
175,400
Million USD
201,944
231,170
252,872
233,623
229,873
217,625
210,480
Real change
1.4
2.4
0.0
-2.5
1.4
-1.4
0.3
Euro
15,143
15,906
16,194
15,805
16,300
16,350
16,437
USD
19,080
21,791
23,805
21,969
20,438
19,724
19,720
Nominal change
Million EUR
GFCF (excl, construction)
and a moderate improvement in 2012.
2007
Private consumption
Investment/GFCF
The forecast indicates a new constraint in the economy for 2011
2006
Per person employed
Public consumption
with repercussions in the economic growth and employment.
3.5
5.1
1.4
0.5
4.4
2.3
0.7
104,746
110,635
115,704
111,949
116,033
116,400
117,200
Real change
1.8
2.5
1.8
-1.0
2.0
-1.9
-1.0
Million EUR
32,421
32,999
33,961
35,826
37,207
36,400
36,000
Real change
-0.6
2.0
-0.5
-14.0
3.2
-6.6
-1.0
Million EUR
35,890
37,629
38,151
32,756
32,056
32,300
32,800
% of GDP
22.4
22.3
22.2
19.5
18.5
18.6
18.7
Real change
-1.3
2.6
-1.8
-4.8
-5.6
-1.3
8.5
8.7
8.8
% of GDP
Real change
-11.6
7.7
7.2
n.a.
n.a.
n.a.
n.a.
4.6
7.6
4.3
-11.6
-3.6
Population (b)
000 inhabitants
10,599
10,618
10,627
10,638
10,636
10,667
10,684
Employment (b)
000 individuals
5,160
5,170
5,198
5,054
4,978
4,900
4,900
Unemployment (b)
000 individuals
428
449
427
529
603
600
700
62.5
62.6
62.5
61.9
61.9
n.a.
n.a.
7.7
8.0
7.6
9.5
10.8
11.1
11.2
Rate of economic activity (b)
% of total pop. > 15 years old
Unemployment rate Portugal (c)
% of active population
Unemployment rate EU-27 (d)
% of active population
Overall balance - General Government
% of GDP
Public Debt
% of GDP
Current Account Balance
Million EUR
% of GDP
8.2
7.2
7.0
8.9
9.6
9.5
9.1
-4.1
-2.8
-2.9
-9.3
-7.3
-7.4
-6.5
64.7
62.7
65.3
76.1
82.8
88.8
92.4
-17,187
-17,074
-21,699
-18,362
-17,060
-13,928
-11,752
-10.7
-10.1
-12.6
-10.9
-9.9
-8.0
-6.7
HCPI Portugal
Annual change average
3.0
2.4
2.7
-0.9
1.4
3.6
2.0
HCPI EU-27(d)
Annual change - average
2.3
2.4
3.7
1.0
2.0
2.5
1.8
Sources: GEE Gabinete de Estratgia e Estudos based on INE Instituto Nacional de Estatstica, and Banco de Portugal, except where stated in contrary
Notes: (a) Forecast: Eurostat; European Commission; Banco de Portugal; EIU - Economist Intelligence Unit (b) INE Employment Statistics; EIU (c) INE; European Commission
(d) Eurostat; European Commission
Exchange rate EUR/USD Banco de Portugal and EIU n.a. not available

International trade
The largest positive growth rate in value is in exports to Spain,

Germany, France and the USA, that together represented a
After the loss verified in 2009, in 2010 there was a significant
50% increase of the total registered in 2010.
increase in Portuguese exports. Portugal benefited from an

increase in international demand and from the economic
In terms of traded products, in general there was an increase
recovery of our main trade partners, which started at the end of
in 2010, in relation to the previous year, but the major
2009, and was consolidated during 2010.
contribution to the positive evolution of exports of goods was

determined by Fuels to non-EU countries; Vehicles and other
These factors were the reasons for an increase in exports of
transport equipment, Pulp and paper, Plastics and rubber to the
goods and services, with a greater emphasis on goods (15.7%)
EU countries.
than on services (7.7%).

A larger internal demand contributed to the increase of imports
In 2010, Portugals export markets for goods, continued to grow
and a slight deterioration in the trade balance. As with exports,
towards a broader diversification of trade partners (during the
Fuels and Vehicles and other transport equipment, were the
last decade, EU countries have lost market share in favour of
group of products that mostly contributed to the increase of
third countries, which already accounted for of total exports).
imports in 2010.
Portugals International Trade
2005
2006
2007
2008
2009
2010
Change %
(10/09)
Trade in goods and services1

Exports (fob)
Million EUR
43,375
50,495
55,486
57,066
48,339
54,470
12.7
Imports (fob)
Million EUR
57,689
63,883
68,159
73,449
60,148
65,692
9.2
Balance (fob)
Million EUR
-14,314
-13,388
-12,673
-16,383
-11,809
-11,222
-5.0
-9.3
-8.4
-7.5
-9.5
-7.0
-6.5
% of GDP
Trade in goods2
Exports (fob)
Million EUR
31,137
35,640
38,309
38,950
31,768
36,769
15.7
Imports (cif)
Million EUR
51,379
56,295
59,927
64,194
51,368
56,783
10.5
Balance (fob-cif)
Million EUR
-20,242
-20,654
-21,617
-25,244
-19,600
-20,014
2.1
-12.4
-12.0
-11.9
-14.0
-11.7
-11.6
% of GDP
Sources: (1) Banco de Portugal (Balance of Payments)
(2) INE Instituto Nacional de Estatstica (initial data)
Geographical Distribution - Exports - 2010

1.7%
Geographical Distribution - Imports - 2010
10.6%
16.3%
1.9%
1.1%
2,2%
2.2%
2.6%
5.2%
6.6%
75.6%
74.0%
UE 27
PALOP
NAFTA
MAGHREB (a)
Mercosul (b)
UE 27
NAFTA
PALOP
Other
Mercosul (a)
MAGHREB (b)
Other
Source: INE Instituto Nacional de Estatstica (initial data)

Note: (a) Includes: Morocco, Algeria, Tunisia, Libya and Mauritania (b) Includes associate members

Note: (a) Includes associate members (b) Includes: Morocco, Algeria, Tunisia, Libya and Mauritania

Trading Partners Main Clients - 2010
Trading Partners Main Suppliers - 2010

31.1%
22.6%
23.3%
26.6%
1.2%
2.9%
1.8%
2.4%
2.8%
2.8%
3.6%
3.8%
3.8%
3.8%
13.0%
5.2%
5.2%
5.7%
5.5%
13.9%
7.2%
11.8%
Spain
Angola
Belgium
Spain
Netherlands
Nigeria
Germany
Netherlands
Brazil
Germany
UK
Brazil
France
Italy
Others
France
Belgium
Others
UK
USA
Italy
China
Exports Main Products

0
14,9%
Machinery and tools

Vehicles and other transport material
16,2%
12,4%
11,7%
Base metals
8,0%
7,8%
Plastics and rubber

Oil products
5,0%
Clothing
Wood Pulp and paper
4,7%
6,9%
6,4%
6,8%
6,0%
6,8%
5,7%
5,6%
6,0%
5,5%
5,6%
5,4%
5,5%
5,2%
6,1%
5,0%
4,9%
Other products
Minerals and mineral products
Agricultural Products
Food Products
Chemical Products
4,1%
4,3%
3,6%
4,0%
3,5%
3,7%
Textile materials
Footwear
Wood and cork
Optical and precision instruments
0,3%
0,3%
Skins and leather
1,1%
1,1%
2010
2009
Imports Main Products

Machinery and tools
16,3%
Oil products
12,6%
Vehicles and other transport material

10,0%
10,2%
9,5%
10,0%
Chemical Products
Agricultural Products
5,1%
4,9%
Plastics and rubber
4,1%
4,5%
Food Products
Clothing
Textile materials
Wood Pulp and paper
Optical and precision instruments
Minerals and mineral products
Wood and cork
Skins and leather
Footwear
14,1%
7,9%
7,7%
Base metals
Other products
12,2%
19,2%
14,7%
3,3%
3,4%
3,0%
3,1%
2,8%
2,7%
2,3%
2,5%
2,2%
2,3%
1,4%
1,6%
1,2%
1,1%
1,0%
1,0%
0,9%
0,9%
2010
2009

International investment
crisis, not only on the economy of the countries that traditionally

invest overseas, but also of the main recipients, forcing them to
Foreign direct investment in Portugal
rethink their strategies and their external ranking.
Since 2000, FDI in Portugal has shown a steady growth, with

gross investment ranging between 20 and 35 billion EUR and
which has been directed towards the innovative and technological
By activity sector, in 2010, Wholesale and Retail Trade,

Manufacturing Industry and Financial and Insurance Activities were
the sectors that most benefited from foreign capital in Portugal,
based industries that have international markets as clients.
representing, in total, around 82% of the total gross FDI.

In 2010, FDI into Portugal reached a gross value of 35 billion
The EU countries remain the main investors in Portugal (86.6%
Euros, which represented an increase of 9.6% in relation to the
in 2010), with Germany, France, United Kingdom and Spain
previous year. In net terms the reduction was significant reaching
occupying the leading positions in the ranking. Outside the EU27
43.7%. This unfavourable behaviour of net FDI results from a
members, only Brazil and Switzerland appeared on the list of the
strong negative impact of the economic international financial
top 10 foreign investors in Portugal.
Trends in Foreign Direct Investment in Portugal
32,820
32,634
35,287
35,099
32,018
27,677
8,695
3,160
2,238
2005
2006
Gross investment
Source: Banco de Portugal (February 2011)
2007
3,185
2008
1,948
1,097
2010
2009
Net investment
Unit: Million EUR
Foreign Direct Investment in Portugal

per Country of Origin - 2010a
Foreign Direct Investment in Portugal

per Sector - 2010a
1.0%
0.6%
1.8%
1.2%
6.6%
2.4%
3.1%
5.2%
39.3%
5.6%
5.4%
18.3%
5.5%
7.0%
18.2%
10.3%
Manufacturing
Financial and insurance
activities
Information and
communication activities
13.8%
13.6%
24.4%
Wholesale and retail trade
16.7%
Consultancy, scientific and

technical activities
Germany
Netherlands
Belgium
Real estate activities
France
Luxembourg
Ireland
Construction
UK
Brazil
Others
Electricity, gas and water
Spain
Switzerland
Others
Note: (a) Gross Investment
Note: (a) Gross Investment

Portuguese foreign direct investment
In 2010, Portuguese companies invested mostly in the Financial

and Insurance Activities sector (59% of the total). The main
Over the last 10 years gross Portuguese direct investment abroad
markets for those investments were Luxembourg, Spain,
(PFDI) was estimated at between 6 and 15 billion Euros.
Netherlands and Brazil which, together, represented more than

60% of the total Portuguese FDI flow for that period.
The period from the late 90s and the beginning of the present
decade was clearly marked by great outflows of Portuguese
In recent years, there has been a broader diversification of
investment, mainly toward Spain and Brazil.
destinations for Portuguese overseas investment, with EU-27

showing a reduction in total investment. Apart from Brazil, there
After an exceptionally positive year in 2007, the following three
is an increase in interest for the PALOPs (African Portuguese
years reflected a clear slow down of the Portuguese companies
Speaking Countries), with particular emphasis on Angola, which
overseas projects, as a consequence of the environment of
received 4% of total Portuguese FDI in 2010) and for Eastern
uncertainty generated by the international financial economic
European countries, in particular Poland (an increase of 242% in
crisis, the gross transfers of overseas capital reached 5.8 billion
2010) and Romania (an increase of 30%), witch are part of the
Euros, the lowest amount since 2003.
10 top countries of destination of Portuguese FDI.

Trends in Portuguese Foreign Direct Investment
14,835
9,781
11,376
9,828
7,770
5,691
4,013
1,697
1,872
5,774
588
-6,500
2005
2006
2007
Gross investment
2008
Net investment
Unit: Million EUR
Portuguese Foreign Direct Investment

per Sector - 2010a
0.7%
2010
2009
Portuguese Foreign Direct Investment

by Major Recipients - 2010a
0.5%
5.8%
0.8%
19,7%
5.7%
6.6%
22,0%
1,5%
1,8%
2,3%
3,2%
8.6%
3,8%
59.3%
12.0%
3,9%
16,1%
11,3%
14,4%
Financial and insurance

activities
Consultancy, scientific and

technical activities
Wholesale and retail trade
Construction
Manufacturing
Electricity, gas and water
Luxembourg
Angola
Romania
Information and
communication activities
Spain
Poland
France
Netherlands
USA
Others
Brazil
UK
Real estate operations

Others
Source: Banco de Portugal (February 2011) Note: (a) Gross Investment
Source: Banco de Portugal (February 2011) Note: (a) Gross Investment

Portugal Basic Data

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Portugal - Basic Data

aicep Portugal Global

1.2 Population and language

4.1 Economic structure

4.2 Current economic situation and outlook

6.1 Foreign direct investment in Portugal

6.2 Portuguese foreign direct investment

aicep Portugal Global

The coast of mainland Portugal is mostly unbroken, except for

Mainland Portugal is geographically located in Europes West

(Peniche, Sines and Lagos) and lagoons (Vouga-Aveiro, bidos

Population and language

world, with nearly 900 years of history that clearly demonstrates

Portugals population is estimated at 10.6 million people, of

capital city) and Porto showing the highest population density.

On mainland Portugal, the Tagus River, Portugals largest river,

The Portuguese language is spoken by more than 200 million

people spread over all continents: Europe, Africa, America and

Asia. This diversity greatly contributes to the strong historical and

a mountainous range in the centre of the country, of which Serra

cultural ties that Portugal has with the world.

da Estrela is the highest with 1,991 m. On the archipelagos, Pico

Lisbon (2.1 million inhabit. metropolitan area)

Aveiro, Beja, Braga, Bragana, Castelo Branco,

Euro (in units of 100 cents)

GDP at market prices:

172,837 million EUR (2010)

GDP per capita:

16,300 EUR (2010)

Source: INE - Instituto Nacional de Estatstica; Banco de Portugal

aicep Portugal Global

Maritime Routes: Mainland Portugal has nine major ports: Viana

The Republic of Portugal is a Parliamentary democracy, based

in the Centre; Lisbon and Setbal in the Lisbon region; Sines in

on the respect and the effective guarantees for fundamental

the Alentejo; Faro and Portimo in the Algarve. The Autonomous

rights and freedoms and the separation and interdependence of

powers. Under the Portuguese Constitution, sovereign powers

of Madeira has three. Only Lisbon and Leixes on the mainland

are vested in the President of the Republic, the Assembly of the

offer passenger services, though the number of passengers

Republic, the Government and the Courts.

embarking and disembarking at Leixes port is insignificant. The

The President of the Republic is the Head of State, elected by

This is particularly so at Sines (39.3% of total in 2010), Leixes

direct universal suffrage for a five year term, with a maximum of

(22.4%) and Lisbon (18.5%).

two terms. The current President of the Republic is Anbal Cavaco

Legislative power lies with the Parliament (Assembly of the

Republic) represented by 230 members which are elected by

(the Constitutional Court and the Court of Auditors). The Judicial,

Administrative and Fiscal Courts are numerous, hierarchically

change in manufacturing, which has undergone a modernization

structured and respond to a Supreme Court. In addition, there are

process. Traditional manufacturing has been gradually replaced by

Maritime Courts, Courts of Arbitration and Justices of the Peace.

new activity sectors that offer a larger incorporation of technology

namely motor vehicles and parts thereof, electronics, energy,

Road Infrastructures: Portugal has one of the most developed

Portugals geographic position also impacts on the growth of the

GVA Breakdown 2010

Rail Network: The rail network comprises 3,600 km (2,842 km

with rail traffic) providing North-South connection down the