Economy of Azores
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.
GDP
Real Growth Rate
1%
Per Capita
USD 19,800
From Agriculture
8%
From Industry
26%
From Services
66%
Labour Force
Available for Work
5
Working in Agriculture
10%
Working in Industry
30%
Working in Services
60%
Unemployment Rate
8%
Population Below Poverty Line
0%
Inflation Rate
31%
Investment as Percent of GDP
21%
Budget
Revenues
USD Unknown (m)
Expenditures
USD Unknown (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Grain, potatoes, tomatoes, olives, grapes; sheep, cattle, goats, swine, poultry, dairy products; fish
Core Industries
Textiles and footwear; wood pulp, paper, and cork; metals and metal working; oil refining; chemicals; fish canning;
Exports
Value
USD 43,580 (m)
Commodities
Clothing and footwear, machinery, chemicals, cork and paper products, hides
Partners
Spain 26.5%, Germany 12.9%, France 12%, UK 6.7%, US 6.1% (2006)
Imports
Value
USD 64,450 (m)
Commodities
Machinery and transport equipment, chemicals, petroleum, textiles, agricultural products
Partners
Spain 29%, Germany 13.1%, France 8.1%, Italy 5.6%, Netherlands 4.4% (2006)
External Debt
USD 368,200 (m)
Fiscal Year
Calendar year
