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

- Economy
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.

GDP: $72.1 billion, per capita $6,900; real growth rate 3.5% (1989 est.)

Inflation rate (consumer prices): 11.8% (1989 est.)

Unemployment rate: 5.9% (1989 est.)

Budget: revenues $19.0 billion; expenditures $22.2 billion,
including capital expenditures of $3.1 billion (1989 est.)

Exports: $11.0 billion (f.o.b., 1988); commodities--cotton
textiles, cork and cork products, canned fish, wine, timber and timber
products, resin, machinery, appliances; partners--EC 72%, other
developed countries 13%, US 6%

Imports: $17.7 billion (c.i.f., 1988); commodities--petroleum,
cotton, foodgrains, industrial machinery, iron and steel, chemicals;
partners--EC 67%, other developed countries 13%, less developed countries
15%, US 4%

External debt: $17.2 billion (1988)

Industrial production: growth rate 5.5% (1988)

Electricity: 6,729,000 kW capacity; 16,000 million kWh produced,
1,530 kWh per capita (1989)

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

Agriculture: accounts for 9% of GDP and 20% of labor force; small
inefficient farms; imports more than half of food needs; major crops--grain,
potatoes, olives, grapes; livestock sector--sheep, cattle, goats, poultry, meat,
dairy products

Aid: US commitments, including Ex-Im (FY70-88), $1.8 billion; Western
(non-US) countries, ODA and OOF bilateral commitments (1970-87), $998 million

Currency: Portuguese escudo (plural--escudos);
1 Portuguese escudo (Esc) = 100 centavos

Exchange rates: Portuguese escudos (Esc) per US$1--149.15 (January 1990),
157.46 (1989), 143.95 (1988), 140.88 (1987), 149.59 (1986), 170.39 (1985)

Fiscal year: calendar year

- Communications
Railroads: 3,