The CIA World Factbook Every edition, 1990 to 2025 Europe
Economic overview Portugal, in 36 editions.
The entry for Portugal published Economic overview in 36 editions of 36, from 1990 to 2025. The text changed in 31 editions. Each is shown as published. Economic overview in every entry.
- editions changed the text
- 31
- the first edition with it
- 1990
- the latest edition with it
- 2025
Published as “Overview” (1990 to 1995), “Economic overview” (1996 to 2025), “Economy - overview” (1997 to 2019), “Economy-overview” (1998) and “Economy--overview” (1999).
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2025 edition
Changed since 2024Published as “Overview”
During the past four years, the economy has made a sustained recovery from the severe recession of 1983-85. The economy grew by 4.7% in 1987, 4.1% in 1988, and 3.5% in 1989, largely because of strong domestic consumption and investment spending. Unemployment has declined for the third consecutive year, but inflation continues to be about three times the European Community average. The government is pushing economic restructuring and privatization measures in anticipation of the 1992 European Community timetable to form a single large market in Europe.
During the past four years, the economy has made a sustained recovery from the severe recession of 1983-85. The economy grew by 4.7% in 1987, 4.1% in 1988, and 3.5% in 1989, largely because of strong domestic consumption and investment spending. Unemployment has declined for the third consecutive year, but inflation continues to be about three times the European Community average. The government is pushing economic restructuring and privatization measures in anticipation of the 1992 European Community timetable to form a single large market in Europe.
Published as “Overview”
During the past four years, the economy has made a sustained recovery from the severe recession of 1983-85. The economy grew by 14% during the 1987-89 period, largely because of strong domestic consumption and investment spending. Unemployment has declined for the third consecutive year, but inflation continues to be about three times the European Community average. The government is pushing economic restructuring and privatization measures in anticipation of the 1992 European Community timetable to form a single large market in Europe.
During the past four years, the economy has made a sustained recovery from the severe recession of 1983-85. The economy grew by 4.7% in 1987, 4.1% in 1988, and 3.5% in 1989, 14% during the 1987-89 period, largely because of strong domestic consumption and investment spending. Unemployment has declined for the third consecutive year, but inflation continues to be about three times the European Community average. The government is pushing economic restructuring and privatization measures in anticipation of the 1992 European Community timetable to form a single large market in Europe.
Published as “Overview”
Although Portugal has experienced strong growth since joining the EC in 1986 - at least 4% each year through 1990 - it remains one of the poorest members. To prepare for the European single market, the government is restructuring and modernizing the economy and in 1989 embarked on a major privatization program. The global slowdown and tight monetary policies to counter inflation caused growth to slow in 1991, but it is likely to recover in 1992.
Rewritten: too little of the 1991 text remains to mark the changes.
Although Portugal has experienced strong growth since joining the EC in 1986
- at least 4% each year through 1990 - it remains one of the poorest
members. To prepare for the European single market, the government is
restructuring and modernizing the economy and in 1989 embarked on a major
privatization program. The global slowdown and tight monetary policies to
counter inflation caused growth to slow in 1991, but it is likely to recover
in 1992.
Published as “Overview”
Although Portugal has experienced strong growth since joining the EC in 1986 - at least 4% each year through 1990 - it remains one of the poorest members. To prepare for the European single market, the government is restructuring and modernizing the economy and in 1989 embarked on a major privatization program. As of 1 January 1993, Lisbon has fully liberalized its capital markets and most trade markets. The global slowdown and tight monetary policies to counter inflation caused growth to slow in 1991 and 1992. Growth probably will remain depressed in 1993, but should pick up again in 1994.
Although Portugal has experienced strong growth since joining the EC in 1986
- at least 4% each year through 1990 - it remains one of the poorest
members. To prepare for the European single market, the government is
restructuring and modernizing the economy and in 1989 embarked on a major
privatization program. As of 1 January 1993, Lisbon has fully liberalized
its capital markets and most trade markets. The global slowdown and tight
monetary policies to1991, 1991 and
1992. Growth probably will remain depressed in 1993, but it is likely to recover should pick up
again in 1992. 1994.
Published as “Overview”
Portugal's economy registered only 1.1% growth in 1992 and contracted by 0.4% in 1993, in contrast to the 4.5% average of the fast-paced 1986-90 period. Recession in the European Union, which accounts for 75% of Portugal's international trade, is the key factor in the downturn. The government's long-run economic goal is the modernization of Portuguese markets, industry, infrastructure, and workforce in order to catch up with productivity and income levels of the more advanced EU countries.
Per capita income now equals only 55% of the EU average. The government's medium-term economic objective is to be in the first tier of EU countries eligible to join the economic and monetary union (EMU) as early as 1997. Economic policy in 1993 focused on reducing inflationary pressures by lowering the fiscal deficit, maintaining a stable escudo, moderating wage increases, and encouraging increased competition. Resumption of growth in the short run depends on the revival of growth in Europe as a whole, not a likely prospect in the immediate future.
Rewritten: too little of the 1993 text remains to mark the changes.
Portugal's economy registered only 1.1% growth in 1992 and contracted
by 0.4% in 1993, in contrast to the 4.5% average of the fast-paced
1986-90 period. Recession in the European Union, which accounts for
75% of Portugal's international trade, is the key factor in the
downturn. The government's long-run economic goal is the modernization
of Portuguese markets, industry, infrastructure, and workforce in
order to catch up with productivity and income levels of the more
advanced EU countries. Per capita income now equals only 55% of the EU
average. The government's medium-term economic objective is to be in
the first tier of EU countries eligible to join the economic and
monetary union (EMU) as early as 1997. Economic policy in 1993 focused
on reducing inflationary pressures by lowering the fiscal deficit,
maintaining a stable escudo, moderating wage increases, and
encouraging increased competition. Resumption of growth in the short
run depends on the revival of growth in Europe as a whole, not a
likely prospect in the immediate future.
Published as “Overview”
Portugal's economy contracted 0.4% in 1993 but registered a 1.4% growth in 1994, with 3% growth expected in 1995 and 1996. This comeback rests on high levels of public investment, continuing strong export growth, and a gradual recovery in consumer spending. The government's long-run economic goal is the modernization of Portuguese markets, industry, infrastructure, and work force in order to catch up with productivity and income levels of the more advanced EU countries.
Per capita income now equals only 55% of the EU average. Economic policy in 1994 focused on reducing inflationary pressures by lowering the fiscal deficit, maintaining a stable escudo, moderating wage increases, and encouraging increased competition. The government's medium-term objective is to be in the first tier of the EU countries eligible to join the economic and monetary union (EMU) as early as 1997. To this end, the 1995 budget posits a cut in total deficit to 5.8% of GDP.
Portugal's economy registered only 1.1% growth in 1992 and contracted
by1993, in contrast to the 4.5% average of the fast-paced 1993 but registered a1986-90 period. Recession 1.4% growth in the European Union, which accounts for 1994, with 3% growth expected in 1995 and 1996. This75% comeback rests on high levels of Portugal's international trade, is the key factor in the public investment, continuing strongdownturn. export growth, and a gradual recovery in consumer spending. The
government's long-run economic goal is the modernization
markets, industry, infrastructure, and workforce work force in
with productivity and income levels of the more
Per capita income now equals only 55% of the EU
policy in 1994 focused on reducing inflationary pressures by lowering
the fiscal deficit, maintaining a stable escudo, moderating wage
increases, and encouraging increased competition. The government's
medium-term economic objective is to be in
eligible to join the economic and1997. Economic policy in 1993 focusedon reducing inflationary pressures by lowering 1997. To this end, the fiscal deficit, 1995 budget posits a
maintainingstable escudo, moderating wage increases, and cut in
encouraging increased competition. Resumption of growththe short total deficit torun depends on the revival 5.8% of growth in Europe as a whole, not a GDP.
likely prospect in the immediate future.
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.
Rewritten: too little of the 1995 text remains to mark the changes.
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.
Published as “Economy - overview”
Portugal's short-term economic fundamentals remain
- strong:
- the economy has grown by more than 2% during the past two years, with similar growth expected in 1997. The Socialist government's primary economic goal is to place Portugal in the first group of countries adopting the single European currency, and it has instituted a disciplined 1997 budget to bolster Lisbon's chances. Portuguese government forecasts suggest that it is likely to meet partially the Maastricht monetary convergence criteria by lowering its budget deficit from 4% of GDP in 1996 to 2.9% in 1997, although the government predicts that government debt will be cut only to 68% of GDP, overshooting Maastricht's 60% target. Social programs - a priority for the Socialists - will still grow slightly faster than GDP in 1997, mandating strict budget discipline in other areas. As for the long run, Portugal is increasing its infrastructure spending - much of it in anticipation of hosting the world's International Exposition in 1998 - while working to modernize its capital plant and increase competitiveness in hopes of increasing Portugal's GDP, which remains below 65% of the EU's average GDP per capita.
Rewritten: too little of the 1996 text remains to mark the changes.
Portugal's short-term economic fundamentals remain
strong: the economy has grown by more than 2% during the past two
years, with similar growth expected in 1997. The Socialist
government's primary economic goal is to place Portugal in the first
group of countries adopting the single European currency, and it has
instituted a disciplined 1997 budget to bolster Lisbon's chances.
Portuguese government forecasts suggest that it is likely to meet
partially the Maastricht monetary convergence criteria by lowering its
budget deficit from 4% of GDP in 1996 to 2.9% in 1997, although the
government predicts that government debt will be cut only to 68% of
GDP, overshooting Maastricht's 60% target. Social programs - a
priority for the Socialists - will still grow slightly faster than GDP
in 1997, mandating strict budget discipline in other areas. As for the
long run, Portugal is increasing its infrastructure spending - much of
it in anticipation of hosting the world's International Exposition in
1998 - while working to modernize its capital plant and increase
competitiveness in hopes of increasing Portugal's GDP, which remains
below 65% of the EU's average GDP per capita.
Published as “Economy-overview”
Portugal's short-term economic fundamentals remain
- strong:
- 1997 was marked by a reduction in inflation, a rise in the GDP growth rate, a reduction in the fiscal deficit, and a lowering of interest rates. The Socialist government's primary economic goal is to place Portugal in the initial group of countries adopting the single European currency; Lisbon looks well positioned to be in the first tranche of EMU countries. As for the long run, Portugal is increasing its infrastructure spending, in anticipation of hosting the world's International Exposition, which began in May 1998. Lisbon also is working to modernize its capital plant and increase competitiveness in hope of moving up closer to the EU average.
Rewritten: too little of the 1997 text remains to mark the changes.
Portugal's short-term economic fundamentals remain
strong: 1997 was marked by a reduction in inflation, a rise in the GDP
growth rate, a reduction in the fiscal deficit, and a lowering of
interest rates. The Socialist government's primary economic goal is to
place Portugal in the initial group of countries adopting the single
European currency; Lisbon looks well positioned to be in the first
tranche of EMU countries. As for the long run, Portugal is increasing
its infrastructure spending, in anticipation of hosting the world's
International Exposition, which began in May 1998. Lisbon also is
working to modernize its capital plant and increase competitiveness in
hope of moving up closer to the EU average.
Published as “Economy--overview”
Portugal, in 1998, continued to see strong economic growth, falling interest rates, and low unemployment. The country qualified for the European Monetary Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on 1 January 1999. Portugal's inflation rate for 1998, 2.8%, was low but higher than most of its European partners. The country continues to run a trade deficit and a balance of payments deficit.
The government is working to modernize capital plant and increase the country's competitiveness in the increasingly integrated world markets. Growth is expected to slow to 3% in 1999 because of a slowdown in public investment and sluggish demand for exports.
Rewritten: too little of the 1998 text remains to mark the changes.
Portugal, in 1998, continued to see strong
economic growth, falling interest rates, and low unemployment. The
country qualified for the European Monetary Union (EMU) in 1998 and
joined with 10 other European countries in launching the euro on 1
January 1999. Portugal's inflation rate for 1998, 2.8%, was low but
higher than most of its European partners. The country continues to
run a trade deficit and a balance of payments deficit. The
government is working to modernize capital plant and increase the
country's competitiveness in the increasingly integrated world
markets. Growth is expected to slow to 3% in 1999 because of a
slowdown in public investment and sluggish demand for exports.
Published as “Economy - overview”
Portugal is an upcoming capitalist economy with a per capita GDP two-thirds that of the four big West European economies. In 1999, it continued to enjoy sturdy economic growth, falling interest rates, and low unemployment. The country qualified for the European Monetary Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on 1 January 1999. Portugal's inflation rate for 1999, 2.4%, was comfortably low.
The country continues to run a trade deficit and a balance of payments deficit. The government is working to modernize capital plant and increase the country's competitiveness in the increasingly integrated world markets. Growth is expected to remain stable in 2000 as the economic integration of Europe proceeds. Improvement in the education sector is critical to the catch-up process.
Portugal, in 1998, Portugal is an upcoming capitalist economy with a per capita GDP two-thirds that of the four big West European economies. In 1999, it continued to see strongenjoy sturdy economic growth, falling interest rates, and low unemployment. The1998, 2.8%, 1999, 2.4%, was low but comfortably low. The country continues to
higher than most of its European partners.slow to 3% remain stable in 1999 because 2000 as the economic integration of a Europe proceeds. Improvement in
slowdownpublic investment and sluggish demand for exports. the education sector is critical to the catch-up process.
Published as “Economy - overview”
Portugal is an upcoming capitalist economy with a per capita GDP two-thirds that of the four big West European economies. The country qualified for the European Monetary Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on 1 January 1999. The year 2000 was marked by moderation in growth, inflation, and unemployment. The country continues to run a sizable trade deficit. The government is working to reform the tax system, to modernize capital plant, and to increase the country's competitiveness in the increasingly integrated world markets. Growth is expected to fall off slightly in 2001. Improvement in the education sector is critical to the long-run catch-up process.
Portugal is an upcoming capitalist economy with a per capita GDP two-thirds that of the four big West European economies. In 1999, it continued to enjoy sturdy economic growth, falling interest rates, and low unemployment. The country qualified for the European Monetary Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on 1 January 1999. Portugal's inflation rate for 1999, 2.4%, The year 2000 was comfortably low. marked by moderation in growth, inflation, and unemployment. The country continues to run a sizable trade deficit and a balance of payments deficit. The government is working to reform the tax system, to modernize capital plant plant, and to increase the country's competitiveness in the increasingly integrated world markets. Growth is expected to remain stable fall off slightly in 2000 as the economic integration of Europe proceeds. 2001. Improvement in the education sector is critical to the long-run catch-up process.
Published as “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 its new currency, the euro, on 1 January 2002 along with 11 other EU member economies.
Economic growth has been above the EU average for much of the past decade, but fell back in 2001-02. GDP per capita stands at 75% of that of the leading 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 new coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
Rewritten: too little of the 2001 text remains to mark the changes.
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 its new currency, the euro, on 1 January 2002 along with 11 other EU member economies. Economic growth has been above the EU average for much of the past decade, but fell back in 2001-02. GDP per capita stands at 75% of that of the leading 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 new coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
Published as “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 has been above the EU average for much of the past decade, but fell back in 2001-03. GDP per capita stands at 70% of that of the leading 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 coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
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 its new currency, the euro, euro on 1 January 2002 along with 11 other EU member economies. Economic growth has been above the EU average for much of the past decade, but fell back in 2001-02. 2001-03. GDP per capita stands at 75% 70% of that of the leading 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 new coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
Published as “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 Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies.
Economic growth has been above the EU average for much of the past decade, but fell back in 2001-03. GDP per capita stands at 70% of that of the leading 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 coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
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 Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies. Economic growth has been above the EU average for much of the past decade, but fell back in 2001-03. GDP per capita stands at 70% of that of the leading 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 coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
Published as “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 2001-04. 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.
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 Economic and European Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies. Economic growth has had been above the EU average for much of the past decade, but fell back in 2001-03. 2001-04. GDP per capita stands at 70% of two-thirds that of the leading 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 coalition government faces tough choices in its attempts to boost Portugal's economic competitiveness and to keep while keeping the budget deficit within the 3% EU eurozone's 3%-of-GDP ceiling.
Published as “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.
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 2001-04. 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.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, 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 1990s, but fell back in 2001-06. GDP per capita stands at roughly two-thirds of the EU-25 average. 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 budget deficit surged to an all-time high of 6% of GDP in 2005 but was reduced to 4.6% in 2006. 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.
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past decade, two decades, 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, 1990s, but fell back in 2001-05. 2001-06. GDP per capita stands at roughly two-thirds that of the Big Four EU economies. EU-25 average. 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 budget deficit surged to an all-time high of 6% of GDP in 2005 but was reduced to 4.6% in 2006. 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.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, 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 1990s, but fell back in 2001-07. GDP per capita stands at roughly two-thirds of the EU-27 average. 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 budget deficit surged to an all-time high of 6% of GDP in 2005, but the government reduced the deficit to 2.6% in 2007 - a year ahead of Portugal's targeted schedule. Nonetheless, 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.
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, 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 1990s, but fell back in 2001-06. 2001-07. GDP per capita stands at roughly two-thirds of the EU-25 EU-27 average. 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 budget deficit surged to an all-time high of 6% of GDP in 2005 2005, but was the government reduced the deficit to 4.6% 2.6% in 2006. The 2007 - a year ahead of Portugal's targeted schedule. Nonetheless, 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.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, 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 1990s, but fell back in 2001-08. GDP per capita stands at roughly two-thirds of the EU-27 average. 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 budget deficit surged to an all-time high of 6% of GDP in 2005, but the government reduced the deficit to 2.6% in 2007 - a year ahead of Portugal's targeted schedule. Nonetheless, the government faces tough choices in its attempts to boost the economy, which declined 0.1% in 2008, while keeping the budget deficit within the euro-zone 3%-of-GDP ceiling.
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, 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 1990s, but fell back in 2001-07. 2001-08. GDP per capita stands at roughly two-thirds of the EU-27 average. 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 budget deficit surged to an all-time high of 6% of GDP in 2005, but the government reduced the deficit to 2.6% in 2007 - a year ahead of Portugal's targeted schedule. Nonetheless, the government faces tough choices in its attempts to boost Portugal's economic competitiveness the economy, which declined 0.1% in 2008, while keeping the budget deficit within the eurozone's euro-zone 3%-of-GDP ceiling.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, 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 1990s, but fell back in 2001-08, shrank 2.6% in 2009, before growing 1% in 2010. GDP per capita stands at roughly two-thirds of the EU-27 average. A poor educational system and a rigid labor market have been obstacles to greater productivity and growth. Portugal also has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target for foreign direct investment.
Portugal's competitiveness problems, low growth prospects, and high levels of public debt have made it vulnerable to bond market turbulence. Lisbon is implementing austerity measures to reduce the budget deficit from 9.4% of GDP in 2009 to 4.6% of GDP in 2011, but some investors have expressed concern about Portugal's ability to achieve these targets and cover its sovereign debt. Without the option for stimulus measures, the government is focusing instead on boosting exports and implementing labor market reforms to try to raise GDP growth and tackle Portugal's competitiveness problems, which may help mitigate investor concerns over time.
Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, 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 1990s, but fell back in 2001-08. 2001-08, shrank 2.6% in 2009, before growing 1% in 2010. GDP per capita stands at roughly two-thirds of the EU-27 average. A poor educational system, in particular, has system and a rigid labor market have been an obstacle obstacles to greater productivity and growth. Portugal also has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target for foreign direct investment. The budget deficit surged to an all-time Portugal's competitiveness problems, low growth prospects, and high levels of 6% public debt have made it vulnerable to bond market turbulence. Lisbon is implementing austerity measures to reduce the budget deficit from 9.4% of GDP in 2005, but the government reduced the deficit 2009 to 2.6% in 2007 - a year ahead 4.6% of GDP in 2011, but some investors have expressed concern about Portugal's targeted schedule. Nonetheless, ability to achieve these targets and cover its sovereign debt. Without the option for stimulus measures, the government faces tough choices in its attempts is focusing instead on boosting exports and implementing labor market reforms to boost the economy, try to raise GDP growth and tackle Portugal's competitiveness problems, which declined 0.1% in 2008, while keeping the budget deficit within the euro-zone 3%-of-GDP ceiling. may help mitigate investor concerns over time.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the past two decades, 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 Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy had grown by more than the EU average for much of the 1990s, but fell back in 2001-08, and contracted 2.6% in 2009, before growing 1% in 2010. GDP per capita stands at roughly two-thirds of the EU-27 average. A poor educational system and a rigid labor market have been obstacles to greater productivity and growth. Portugal also has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a destination for foreign direct investment.
Portugal's low competitiveness, low growth prospects, and high levels of public debt have made it vulnerable to bond market turbulence. The government is implementing austerity measures, including a 5% public salary cut which went into effect on January 1, 2011 and a 2% increase in the value-added tax, to reduce the budget deficit from 9.3% of GDP in 2009 to 4.6% in 2011, but some investors have expressed concern about the government's ability to achieve these targets and cover its sovereign debt.
Without the option for stimulus measures, the government is focusing instead on boosting exports and implementing labor market reforms to try to raise GDP growth and increase Portugal's competitiveness - which, over time, may help mitigate investor concerns.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the past two decades, 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 Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU member economies. Economic growth members. The economy had been above grown by more than the EU average for much of the 1990s, but fell back in 2001-08, shrank and contracted 2.6% in 2009, before growing 1% in 2010. GDP per capita stands at roughly two-thirds of the EU-27 average. A poor educational system and a rigid labor market have been obstacles to greater productivity and growth. Portugal also has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target destination for foreign direct investment. Portugal's competitiveness problems, low competitiveness, low growth prospects, and high levels of public debt have made it vulnerable to bond market turbulence. Lisbon The government is implementing austerity measures measures, including a 5% public salary cut which went into effect on January 1, 2011 and a 2% increase in the value-added tax, to reduce the budget deficit from 9.4% 9.3% of GDP in 2009 to 4.6% of GDP in 2011, but some investors have expressed concern about Portugal's the government's ability to achieve these targets and cover its sovereign debt. Without the option for stimulus measures, the government is focusing instead on boosting exports and implementing labor market reforms to try to raise GDP growth and tackle increase Portugal's competitiveness problems, which - which, over time, may help mitigate investor concerns over time. concerns.
The same text in 2012 and 2013.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified for the Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted 2.5% in 2009, before growing 1.4% in 2010, but GDP fell again in 2011 and 2012, as the government began implementing spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, agreed to in May 2011. GDP per capita stands at roughly two-thirds of the EU-27 average.
Portugal also has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a destination for foreign direct investment, in part because its rigid labor market hindered greater productivity and growth. However, the government of Pedro PASSOS COELHO has enacted several measures to introduce more flexibility into the labor market, and, this, along with steps to reduce high levels of public debt, could make Portugal more attractive to foreign investors.
The government reduced the budget deficit from 10.1% of GDP in 2009 to 4.5% in 2011, an achievement made possible only by the extraordinary revenues obtained from the one-time transfer of bank pension funds to the social security system. The budget deficit worsened in 2012 as a sharp reduction in domestic consumption took a bigger bite out of value-added tax revenues while rising unemployment benefits increased expenditures more than anticipated.
Poor growth prospects over the next year have reinforced investors' concerns about the government's ability to achieve its budget deficit targets and regain full access to bond market financing when the EU-IMF financing program expires in 2013.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the past following two decades, 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 Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU members. The economy had grown grew by more than the EU average for much of the 1990s, but fell back the rate of growth slowed in 2001-08, and 2001-08. The economy contracted 2.6% 2.5% in 2009, before growing 1% 1.4% in 2010. 2010, but GDP fell again in 2011 and 2012, as the government began implementing spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, agreed to in May 2011. GDP per capita stands at roughly two-thirds of the EU-27 average. A poor educational system and a rigid labor market have been obstacles to greater productivity and growth. Portugal also has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a destination for foreign direct investment. Portugal's low competitiveness, low growth prospects, investment, in part because its rigid labor market hindered greater productivity and growth. However, the government of Pedro PASSOS COELHO has enacted several measures to introduce more flexibility into the labor market, and, this, along with steps to reduce high levels of public debt have made it vulnerable debt, could make Portugal more attractive to bond market turbulence. foreign investors. The government is implementing austerity measures, including a 5% public salary cut which went into effect on January 1, 2011 and a 2% increase in the value-added tax, to reduce reduced the budget deficit from 9.3% 10.1% of GDP in 2009 to 4.6% 4.5% in 2011, but some investors an achievement made possible only by the extraordinary revenues obtained from the one-time transfer of bank pension funds to the social security system. The budget deficit worsened in 2012 as a sharp reduction in domestic consumption took a bigger bite out of value-added tax revenues while rising unemployment benefits increased expenditures more than anticipated. Poor growth prospects over the next year have expressed concern reinforced investors' concerns about the government's ability to achieve these targets and cover its sovereign debt. Without the option for stimulus measures, the government is focusing instead on boosting exports budget deficit targets and implementing labor market reforms to try regain full access to raise GDP growth and increase Portugal's competitiveness - which, over time, may help mitigate investor concerns. bond market financing when the EU-IMF financing program expires in 2013.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified for the Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Austerity measures also have contributed to record unemployment and a wave of emigration not seen since the 1960s.
Booming exports will contribute to growth and employment in 2014, but the need to continue to reduce private- and public-sector debt could weigh on consumption and investment. The government of Pedro PASSOS COELHO has stated its intention to reduce labor market rigidity, and, this, along with steps to trim the budget deficit, could make Portugal more attractive to foreign investors. The government reduced the budget deficit from 10.1% of GDP in 2009 to 5.1% in 2013, lower than the EU-IMF fiscal target of 5.5%. Despite these efforts, public debt has continued to grow and, in 2013, stands among the highest in the EU. As a result, the government may have difficulty regaining full bond market financing when the EU-IMF financing program expires in May 2014.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified for the Economic and Monetary Union (EMU) in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU members. The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted 2.5% in 2009, before growing 1.4% in 2010, but GDP and fell again in from 2011 and 2012, to 2013, as the government began implementing implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, agreed to signed in May 2011. GDP per capita stands at roughly two-thirds of the EU-27 average. Portugal Austerity measures also has been increasingly overshadowed by lower-cost producers in Central Europe have contributed to record unemployment and Asia as a destination for foreign direct investment, in part because its rigid labor market hindered greater productivity wave of emigration not seen since the 1960s. Booming exports will contribute to growth and growth. However, employment in 2014, but the need to continue to reduce private- and public-sector debt could weigh on consumption and investment. The government of Pedro PASSOS COELHO has enacted several measures stated its intention to introduce more flexibility into the reduce labor market, market rigidity, and, this, along with steps to reduce high levels of public debt, trim the budget deficit, could make Portugal more attractive to foreign investors. The government reduced the budget deficit from 10.1% of GDP in 2009 to 4.5% 5.1% in 2011, an achievement made possible only by the extraordinary revenues obtained from 2013, lower than the one-time transfer EU-IMF fiscal target of bank pension funds 5.5%. Despite these efforts, public debt has continued to the social security system. The budget deficit worsened grow and, in 2012 as a sharp reduction 2013, stands among the highest in domestic consumption took the EU. As a bigger bite out of value-added tax revenues while rising unemployment benefits increased expenditures more than anticipated. Poor growth prospects over result, the next year government may have reinforced investors' concerns about the government's ability to achieve its budget deficit targets and regain difficulty regaining full access to bond market financing when the EU-IMF financing program expires in 2013. May 2014.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union (EMU) in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2014, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. A modest recovery began in 2013 and gathered steam in in 2014 due to strong export performance and a rebound in private consumption.
Although austerity measures were instituted to reduce the large budget deficit, they contributed to record unemployment and a wave of emigration not seen since the 1960s. A continued reduction in private- and public-sector debt could weigh on consumption and investment in 2015, holding back a stronger recovery. The government of Pedro PASSOS COELHO has passed legislation aimed at reducing labor market rigidity, and, this, along with sustained fiscal discipline, could make Portugal more attractive to foreign direct investment.
The government reduced the budget deficit from 11.2% of GDP in 2010 to 4.8% in 2014, a figure that is significantly higher than the EU-IMF target of 4%. The government has pledged to lower the deficit to under 3% of GDP in 2015 in order to comply with EU fiscal obligations, under the excessive deficit procedure. Legislative elections in 2015 could increase the risk of fiscal slippage and undermine investor confidence in Portugal’s economy, which has improved over the course of the EU-IMF program. EU-IMF financing expired in May 2014.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified for joined the Economic and Monetary Union (EMU) in 1998 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members. The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2013, 2014, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Austerity A modest recovery began in 2013 and gathered steam in in 2014 due to strong export performance and a rebound in private consumption. Although austerity measures also have were instituted to reduce the large budget deficit, they contributed to record unemployment and a wave of emigration not seen since the 1960s. Booming exports will contribute to growth and employment A continued reduction in 2014, but the need to continue to reduce private- and public-sector debt could weigh on consumption and investment. investment in 2015, holding back a stronger recovery. The government of Pedro PASSOS COELHO has stated its intention to reduce passed legislation aimed at reducing labor market rigidity, and, this, along with steps to trim the budget deficit, sustained fiscal discipline, could make Portugal more attractive to foreign investors. direct investment. The government reduced the budget deficit from 10.1% 11.2% of GDP in 2009 2010 to 5.1% 4.8% in 2013, lower 2014, a figure that is significantly higher than the EU-IMF fiscal target of 5.5%. Despite these efforts, public debt 4%. The government has continued pledged to grow and, lower the deficit to under 3% of GDP in 2013, stands among 2015 in order to comply with EU fiscal obligations, under the highest excessive deficit procedure. Legislative elections in 2015 could increase the EU. As a result, risk of fiscal slippage and undermine investor confidence in Portugal’s economy, which has improved over the government may have difficulty regaining full bond market financing when course of the EU-IMF program. EU-IMF financing program expires expired in May 2014.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2014, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. A modest recovery began in 2013 and gathered steam in 2014 due to strong export performance and a rebound in private consumption. Although austerity measures were instituted to reduce the large budget deficit, they contributed to record unemployment and a wave of emigration not seen since the 1960s.
A continued reduction in private- and public-sector debt could weigh on consumption and investment in 2016, holding back a stronger recovery. The prior center-right government passed legislation aimed at reducing labor market rigidity, and, this, along with sustained fiscal discipline, could make Portugal more attractive to foreign direct investment. Under the center-right government, the budget deficit fell from 11.2% of GDP in 2010 to 3.5% in 2015, reaching the EU-IMF target of 4%, but still above its EU fiscal obligations, under the excessive deficit procedure.
EU-IMF financing expired in May 2014. The new center-left Socialist government, however, has signaled that it will unwind spending cuts associated with austerity while remaining within EU fiscal targets.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union (EMU) in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2014, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. A modest recovery began in 2013 and gathered steam in in 2014 due to strong export performance and a rebound in private consumption. Although austerity measures were instituted to reduce the large budget deficit, they contributed to record unemployment and a wave of emigration not seen since the 1960s.
A continued reduction in private- and public-sector debt could weigh on consumption and investment in 2015, 2016, holding back a stronger recovery. The prior center-right government of Pedro PASSOS COELHO has passed legislation aimed at reducing labor market rigidity, and, this, along with sustained fiscal discipline, could make Portugal more attractive to foreign direct investment. The government reduced Under the center-right government, the budget deficit fell from 11.2% of GDP in 2010 to 4.8% 3.5% in 2014, a figure that is significantly higher than 2015, reaching the EU-IMF target of 4%. The government has pledged to lower the deficit to under 3% of GDP in 2015 in order to comply with 4%, but still above its EU fiscal obligations, under the excessive deficit procedure. Legislative elections in 2015 could increase the risk of fiscal slippage and undermine investor confidence in Portugal’s economy, which has improved over the course of the EU-IMF program. EU-IMF financing expired in May 2014. The new center-left Socialist government, however, has signaled that it will unwind spending cuts associated with austerity while remaining within EU fiscal targets.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014. A modest recovery gathered steam in 2015 due to strong export performance and a rebound in private consumption.
Growth slowed slightly in the first half of 2016, but rebounded in the last two quarters of the year to register at 1.4 percent for the year. Unemployment remains high, at 10.2%, at the end of 2016, but has improved steadily since peaking at 18% in 2013.
The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 2.0% in 2016, the country’s lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal is expected to exit the EU’s excessive deficit procedure by mid-2017.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. The economy contracted in 2009, and fell again from 2011 to 2014, 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014. A modest recovery began in 2013 and gathered steam in 2014 2015 due to strong export performance and a rebound in private consumption. Although austerity measures were instituted to reduce Growth slowed slightly in the large budget deficit, they contributed first half of 2016, but rebounded in the last two quarters of the year to record unemployment and a wave register at 1.4 percent for the year. Unemployment remains high, at 10.2%, at the end of emigration not seen 2016, but has improved steadily since the 1960s. peaking at 18% in
A continued reduction in private- and public-sector debt could weigh on consumption and investment2016, holding back a stronger recovery. 2013.
The prior center-right center-left minority Socialist government passed legislation aimed at reducing labor market rigidity, and, this, along with sustained fiscal discipline, could make Portugal more attractive has unwound some unpopular austerity measures while managing to foreign direct investment. Under the center-right government, the remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 3.5% 2.0% in 2015, reaching 2016, the EU-IMF target of 4%, but still above its country’s lowest since democracy was restored in 1974, and surpassing the EU fiscal obligations, under and IMF projections of 3%. Portugal is expected to exit the EU’s excessive deficit procedure. EU-IMF financing expired in May 2014. The new center-left Socialist government, however, has signaled that it will unwind spending cuts associated with austerity while remaining within EU fiscal targets. procedure by mid-2017.
The same text in 2018 and 2019.
Published as “Economy - overview”
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. After the global financial crisis in 2008, Portugal’s economy contracted in 2009 and fell into recession from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014, and its economic recovery gained traction in 2015 because of strong exports and a rebound in private consumption.
GDP growth accelerated in 2016, and probably reached 2.5 % in 2017. Unemployment remained high, at 9.7% in 2017, but has improved steadily since peaking at 18% in 2013. The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 1.8% in 2017, the country’s lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal exited the EU’s excessive deficit procedure in mid-2017.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.The After the global financial crisis in 2008, Portugal’s economy contracted in 2009, 2009 and fell again into recession from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014. A modest 2014, and its economic recovery gathered steam gained traction in 2015 due to because of strong export performance exports and a rebound in private consumption. Growth slowed slightly GDP growth accelerated in the first half of 2016, but rebounded and probably reached 2.5 % in the last two quarters of the year to register at 1.4 percent for the year. 2017. Unemployment remains remained high, at 10.2%, at the end of 2016, 9.7% in 2017, but has improved steadily since peaking at 18% in 2013.2.0% 1.8% in 2016, 2017, the country’s lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal is expected to exit exited the EU’s excessive deficit procedure by in mid-2017.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. After the global financial crisis in 2008, Portugal’s economy contracted in 2009 and fell into recession from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014, and its economic recovery gained traction in 2015 because of strong exports and a rebound in private consumption.
GDP growth accelerated in 2016, and probably reached 2.5 % in 2017. Unemployment remained high, at 9.7% in 2017, but has improved steadily since peaking at 18% in 2013. The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 1.8% in 2017, the country’s lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal exited the EU’s excessive deficit procedure in mid-2017.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members. The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. After the global financial crisis in 2008, Portugal’s economy contracted in 2009 and fell into recession from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014, and its economic recovery gained traction in 2015 because of strong exports and a rebound in private consumption. GDP growth accelerated in 2016, and probably reached 2.5 % in 2017. Unemployment remained high, at 9.7% in 2017, but has improved steadily since peaking at 18% in 2013. The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 1.8% in 2017, the country’s lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal exited the EU’s excessive deficit procedure in mid-2017.
The same text in 2021 and 2022.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. After the global financial crisis in 2008, Portugal’s economy contracted in 2009 and fell into recession from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014, and its economic recovery gained traction in 2015 because of strong exports and a rebound in private consumption. GDP growth accelerated in 2016, and probably reached 2.5 % in 2017. Unemployment remained high, at 9.7% in 2017, but has improved steadily since peaking at 18% in 2013.
The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 1.8% in 2017, the country’s lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal exited the EU’s excessive deficit procedure in mid-2017.
Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.
The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. After the global financial crisis in 2008, Portugal’s economy contracted in 2009 and fell into recession from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014, and its economic recovery gained traction in 2015 because of strong exports and a rebound in private consumption. GDP growth accelerated in 2016, and probably reached 2.5 % in 2017. Unemployment remained high, at 9.7% in 2017, but has improved steadily since peaking at 18% in 2013.
The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 1.8% in 2017, the country’s lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal exited the EU’s excessive deficit procedure in mid-2017.
- fast-growing, high-income European economy;
- EU and NATO member;
- heavy Chinese infrastructure ownership;
- key tourism, banking, and telecommunications sectors;
- declining populations;
- major energy exporter
Rewritten: too little of the 2022 text remains to mark the changes.
fast-growing, high-income European economy; EU and NATO member; heavy Chinese infrastructure ownership; key tourism, banking, and telecommunications sectors; declining populations; major energy exporter
- high-income EU and eurozone economy;
- strong services sector led by tourism and banking;
- tight labor market;
- private consumption and export recovery driving post-inflation rebound;
- EU Recovery and Resilience Plan (RRP) funds a key driver of public investment;
- high public debt but improving fiscal position
Rewritten: too little of the 2023 text remains to mark the changes.
high-income EU and eurozone economy; strong services sector led by tourism and banking; tight labor market; private consumption and export recovery driving post-inflation rebound; EU Recovery and Resilience Plan (RRP) funds a key driver of public investment; high public debt but improving fiscal position
- high-income EU and eurozone economy;
- strong services sector led by tourism and banking;
- tight labor market;
- growth driven by private consumption, trade surplus, and public investment from EU funds;
- declining public debt
high-income EU and eurozone economy; strong services sector led by tourism and banking; tight labor market; growth driven by private consumption and export recovery driving post-inflation rebound; EU Recovery consumption, trade surplus, and Resilience Plan (RRP) funds a key driver of public investment; high investment from EU funds; declining public debt but improving fiscal position
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Cite this page
Central Intelligence Agency. “Portugal: Economic overview.” The World Factbook, 1990–2025 editions. Archived by The Factbook, thefactbook.org/portugal/economic-overview.