ores)

Flag description:
two vertical bands of green (hoist side, two-fifths) and red
(three-fifths) with the Portuguese coat of arms centered on the
dividing line

Economy Portugal

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.

GDP:
purchasing power parity - $181.8 billion (2003 est.)

GDP - real growth rate:
-1.3% (2003 est.)

GDP - per capita:
purchasing power parity - $18,000 (2003 est.)

GDP - composition by sector:
agriculture: 5.8%
industry: 30.7%
services: 63.2% (2003)

Investment (gross fixed):
22.3% of GDP (2003)

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: 3.1%
highest 10%: 28.4% (1995 est.)

Distribution of family income - Gini index:
35.6 (1994-95)

Inflation rate (consumer prices):
3.3% (2003 est.)

Labor force:
5.409 million (2003)

Labor force - by occupation:
agriculture 10%, industry 30%, services 60% (1999 est.)

Unemployment rate:
6.4% (2003 est.)

Budget:
revenues: $64.81 billion
expenditures: $69.09 billion, including capital expenditures of NA
(2003 est.)

Public debt:
59.8% of GDP (2003)

Agriculture - products:
grain, potatoes, olives, grapes; sheep, cattle, goats, poultry,
beef, dairy products

Industries:
textiles and footwear; wood pulp, paper, and cork; metalworking;
oil refining; chemicals; fish canning; wine; tourism