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

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt

aicep Portugal Global

Portugal - Basic Data (March 2011)

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

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt

aicep Portugal Global

Portugal - Basic Data (March 2011)

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

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt

aicep Portugal Global

Portugal - Basic Data (March 2011)

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

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt

aicep Portugal Global

Portugal - Basic Data (March 2011)

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

Source: INE Instituto Nacional de Estatstica (initial data)

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

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt

aicep Portugal Global

Portugal - Basic Data (March 2011)

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

Source: INE Instituto Nacional de Estatstica (initial data)

Source: INE Instituto Nacional de Estatstica (initial data)

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

Source: INE Instituto Nacional de Estatstica (initial data)

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt

aicep Portugal Global

Portugal - Basic Data (March 2011)

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

Source: Banco de Portugal (February 2011)

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

Source: Banco de Portugal (February 2011)

Note: (a) Gross Investment

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt

aicep Portugal Global

Portugal - Basic Data (March 2011)

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
Source: Banco de Portugal (February 2011)

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

aicep Portugal Global Business Development Agency Av. 5 de Outubro, 101, 1050-051 LISBOA
Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt