Portugal

Economic indicators

Portugal has enjoyed considerable economic progress since it became a member of the European Community in 1986 (now the EU), largely due to increased international trade and an inflow of EU funds for infrastructure development. Until recently, average annual GDP growth rates consistently exceeded those of the EU average but since 2002 Portugal has started slowing down. The GDP growth rate was 0,5% in 2005. Portugal seems to have started a slow recovery with an estimated growth rate of 1.3% en 2006 and 1,8 in 2007. IMF forecasts a growth rate of 1.8% in 2007, largely driven by a recovery in export growth. The current-account deficit widened to 9.2% of GDP in 2005 because of rising oil prices, but is expected to narrow down to 6.6% of GDP by 2008. The unemployment rate is about 7.5% but inflation is under control at around 2.5%.

Main sectors of industry

The agricultural sector is less mechanised than most of Western European countries, and hence less productive. Agriculture accounts for about 4% of the GDP. The main crops are cereals, fruits, vegetables and wine. Porto wine exports represent 1.4% of total exports. Portugal has large natural resources. The mining sector (copper, tin) as a whole amounts to 6% of the GDP and Portugal is one of the main marble exporters. Portugal's forests provide a major portion of the world's supply of cork. The manufacturing industry is modern and is essentially made up of SMEs – government is now encouraging private participation. Its main activity sectors are metallurgy, mechanical engineering, textile, building construction. In addition, the country has increased its role in Europe's automotive sector and has a world-class mold-making industry. Services, particularly tourism, are playing an increasingly important role. The service sector contributes more than 70% to GDP.

Source: World Bank - World Development Indicators - last available data.

Sources of economic information

Statistical Office

Central Bank

Stock Exchange

Search Engines

Busca
Guianet
NetIndex
Sapo

Political outline

Executive Power

The President is the Head of State. He is elected by universal suffrage for a five year term. He is the Commander-in-chief of the Army. After a general election, the leader of the majority party or coalition is usually appointed to be Prime Minister by the President, for a four year term. The Prime Minister is the head of the government and he holds the executive power, which includes implementing laws and running the everyday business of the country. The Council of Ministers is appointed by the President on the recommendation of the Prime Minister. There is also a Council of State which acts as an advisory body to the President.

Legislative Power

Portuguese legislative power is unicameral. The parliament, called Assembly of the Republic, has 230 seats. The members are elected by universal suffrage for a four year term. The executive branch of government is directly or indirectly dependent on the support of parliament often expressed by a vote of confidence. The Prime Minister cannot dissolve the Assembly, but the President can do so and call for an early election if he so wishes. Portuguese citizens enjoy considerable political rights.

Main political parties

Political life in Portugal is mainly dominated by two parties which are: the PS (Socialist Party) and the PSD (Social Democratic Party). The other parties active in the country are:
- The PP (Popular Party) – Christian democrats,
- The PCP (Portuguese Communist Party) – left-wing party,
- Bloco de Esquerda (Left-wing block) - Association of parties left of the Communist party

Current political leaders

President : Anibal CAVACO Silva (since March 2006) - PSD
Prime Minister: Jose SOCRATES (since March 2005) - PS

Next election dates

Presidential elections: January 2011
Parliamentary elections: February 2009

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