Economy of Portugal

Economy of Portugal

Parque das Nações, Lisbon, the financial center of Portugal.
Currency	Euro (EUR, €)
Fixed exchange rates	1 euro = 200.482 Portuguese escudo
Fiscal year	Calendar year
Trade organisations	EU, WTO and OECD
Country group	Developed/Advanced[1] High-income economy[2]
Statistics
Population	10,467,366 (2022)[3]
GDP	$298.949 billion (nominal; 2024)[4] $485.742 billion (PPP; 2024)[4]
GDP rank	47th (nominal, 2024) 50th (PPP, 2024)
GDP growth	2.3% (2023)[4] 1.7% (2024f)[4] 2.1% (2025f)[4]
GDP per capita	$28,969 (nominal, 2024)[4] $47,070 (PPP, 2023)[4]
GDP per capita rank	39th (nominal, 2024) 40th (PPP, 2024)
GDP by sector	agriculture: 1.9% industry: 18.6% services: 79.5% (2022)[5]
Inflation (CPI)	2.3% (January 2024)[6] 4.3% (2023)[7] 7.8% (2022)[8]
Population below poverty line	17.0% (2022)[9] 20.1% at risk of poverty or social exclusion (2022)[9]
Gini coefficient	33.7 medium (2022)[9]
Human Development Index	0.874 very high (2022)[10] (42nd) 0.774 high IHDI (40th) (2022)[10]
Labour force	5,387,900 (Q1 2024)[11] 77.5% employment rate (2022)[12]
Labour force by occupation	agriculture: 5.1% industry: 24.0% services: 70.9%[13]
Unemployment	6.8% (Q1 2024)[14] 23.0% youth unemployment (16 to 24 year-olds; Q1 2024)[15]
Average gross salary	€1,443 / $1,557[16] monthly (2024/Q1)
Average net salary	€1,209 / $1,304[16][17] monthly (2024/Q1)
Main industries	textiles, clothing, footwear, wood and cork, paper, chemicals, auto-parts manufacturing, base metals, dairy products, wine and other foods, porcelain and ceramics, glassware, technology, telecommunications; ship construction and refurbishment; tourism, building materials
External
Exports	€126.280 billion (2023)[18]
Export goods	List agricultural products, food products, oil products, chemical products, plastics and rubber, skins and leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, minerals and mineral products, base metals, machinery and tools, vehicles and other transport material, optical and precision instruments
Main export partners	Spain(–) 25.8%  France(+) 13.0%  Germany(–) 10.8%  US(+) 6.7%  UK(–) 4.7%  Italy(–) 4.3%  Netherlands(–) 3.5%  Belgium(+) 2.6% [19]
Imports	€123.004 billion (2023)[18]
Import goods	List agricultural products, food products, oil products, chemical products, plastics and rubber, skins and leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, minerals and mineral products, base metals, machinery and tools, vehicles and other transport material, optical and precision instruments, computer accessories and parts, semi-conductors and related devices, household goods, passenger cars new and used, wine products
Main import partners	Spain(+) 33.8%  Germany(+) 11.6%  France(+) 7.0%  Netherlands(+) 5.3%  China(–) 5.0%  Italy(+) 5.0%  Brazil(–) 3.5%  Belgium(+) 3.2% [20]
FDI stock	3.7% of GDP (2022)[21]
Gross external debt	€398.714 billion (Sep 2023)[22]
Public finances
Government debt	99.1% of GDP (2023)[23] €263.085 billion (2023)[24]
Budget balance	€3.2 billion surplus (2023)[25] +1.2% of GDP (2023)[26]
Revenues	43.5% of GDP (2023)[26]
Expenses	42.3% of GDP (2023)[26]
Economic aid	€21.5 billion from European Structural and Investment Funds (2007–2013)[27] €25.79 billion from European Structural and Investment Funds (2014–2020)[28]
Credit rating	Standard & Poor's:[29] A- Outlook: Positive Moody's:[29] A3 Outlook: Stable Fitch:[29] A- Outlook: Stable DBRS:[29] A Outlook: Stable Scope:[29] A- Outlook: Stable
Foreign reserves	$32.23 billion (2022)[30]
All values, unless otherwise stated, are in US dollars.

The economy of Portugal is ranked 34th in the World Economic Forum's Global Competitiveness Report for 2019.^[31] The great majority of the international trade is done within the European Union (EU), whose countries received 71.4% of the Portuguese exports and were the origin of 74.6% of the Portuguese imports in 2020.^[32] The Portuguese currency is the euro (€) and the country has been a part of the Eurozone since its inception. Portugal's central bank is the Banco de Portugal, which forms part of the European System of Central Banks, and the major stock exchange is the Euronext Lisbon.^[33] Among OECD nations, Portugal has a highly efficient and strong social security system; social expenditure stood at roughly 24.6% of GDP.^[34][35][36]

The Portuguese economy has been steady, expanding continuously since the third quarter of 2014, with a yearly GDP growth of 1.5% registered in the second quarter of 2015.^[37] The economy's growth has been accompanied by a continuous fall in the unemployment rate (6.3% in the first quarter of 2019, compared with 13.9% registered in the end of 2014). The government budget deficit has also been reduced from 11.2% of GDP in 2010 to 0.5% in 2018. These rates mark an inversion from the negative trends caused by the impact of the financial crisis of 2007–2008 in the Portuguese economy that made it to shrink for three consecutive years (2011, 2012, and 2013), accompanied by a high increase of the unemployment rate (that achieved a record of 17.7% in early 2013).^[38] The crisis has caused a wide range of domestic problems that are specifically related to the levels of public deficit, as well as the excessive debt levels, in the economy. The problems culminated in the confirmation from Portugal to a €78 billion financial bailout from the EU in April 2011, following similar decisions from Greece and the Republic of Ireland. The government that assumed office in June 2011 had to face tough choices in regard to its attempts to stimulate the economy while at the same time seeking to maintain its public deficit around the EU average.^[39]

Portugal is home to a number of notable leading companies with worldwide reputations, such as The Navigator Company, a major world player in the international paper market; Sonae Indústria, the largest producer of wood-based panels in the world; Corticeira Amorim, the world leader in cork production; Conservas Ramirez, the oldest canned food producer;^[40] Cimpor, one of the world's 10th largest producers of cement; EDP Renováveis, the 3rd largest producer of wind energy in the world; Jerónimo Martins, consumer products manufacturer and retail market leader in Portugal, Poland and Colombia; TAP Air Portugal, highly regarded for its safety record, and one of the leading airlines linking Europe with Africa and Latin America (especially Brazil).

Education in Portugal has been in gradual modernization and relative expansion since the 1960s, achieving recognition for its world-standard practices and trends in the 21st century. According to the Programme for International Student Assessment (PISA) 2015, the average Portuguese 15-year-old student, when rated in terms of reading literacy, mathematics and science knowledge, is placed significantly above the OECD's average.^[41][42] Portugal is home to several world class universities and business schools that have been contributing to the creation of a number of highly renowned international managers^[43] and are attracting an increasing number of foreign students.^[44] Portugal has the highest emigration rate as a proportion of population in the European Union. More than two million Portuguese people (20% of the population) now live outside the country.^[45]