Part 605

Flag: 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 -------

Economic overview: Portugal's short-term economic fundamentals are strong - the economy grew by 2.8% in 1995, with similar growth expected in 1996 and 1997, and unemployment is among the lowest in the EU. The Socialist government has pledged its dedication both to meeting the Maastricht monetary convergence criteria and to increasing social spending, including provision of a guaranteed minimum income. The government's 1996 budget, passed in March 1996, includes a budget deficit target of 4.2%, to be attained largely through cuts in non-social-service government spending and income from an ambitious privatization program. As for the long run, Portugal hopes for a steady modernization of its capital plant, its work force, and its infrastructure in order to catch up with the productivity and income levels of the Big Four economies of Western Europe.

GDP: purchasing power parity - $116.2 billion (1995 est.)

GDP real growth rate: 2.8% (1995 est.)

GDP per capita: $11,000 (1995 est.)

GDP composition by sector: agriculture: 6% industry: 35.8% services: 58.2% (1995 est.)

Inflation rate (consumer prices): 4.6% (1995 est.)

Labor force: 4.24 million (1994 est.) by occupation: services 54.5%, manufacturing 24.4%, agriculture, forestry, fisheries 11.2%, construction 8.3%, utilities 1.0%, mining 0.5% (1992)

Unemployment rate: 7.1% (1995 est.)

Budget: revenues: $31 billion expenditures: $41 billion, including capital expenditures of $NA (1994)

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

Industrial production growth rate: 2.1% (1995 est.)

Electricity: capacity: 8,220,000 kW production: 29.5 billion kWh consumption per capita: 2,642 kWh (1993)

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

Illicit drugs: important gateway country for Latin American cocaine entering the European market; transshipment point for hashish from North Africa to Europe

Exports: $18.9 billion (f.o.b., 1995) commodities: clothing and footwear, machinery, cork and paper products, hides partners: EU 75.1%, other developed countries 12.4% (US 5.2%) (1995)

Imports: $24.1 billion (c.i.f., 1995) commodities: machinery and transport equipment, agricultural products, chemicals, petroleum, textiles partners: EU 71%, other developed countries 10.9% (US 2.5%), less developed countries 12.9% (1995)

External debt: $11.8 billion (1995 est.)

Economic aid: donor: ODA, $248 million (1993) recipient: ODA, $70 million (1993)

Currency: 1 Portuguese escudo (Esc) = 100 centavos

Exchange rates: Portuguese escudos (Esc) per US$1 - 151.61 (January 1996), 149.97 (1995), 165.99 (1994), 160.80 (1993), 135.00 (1992), 144.48 (1991)

Fiscal year: calendar year

Transportation --------------

Railways: total: 3,068 km broad gauge: 2,761 km 1.668-m gauge (464 km electrified; 426 km double track) narrow gauge: 307 km 1.000-m gauge note: in 1992, Portugal had 3,588 km of track of which 464 km were electrified

Highways: total: 70,176 km (statistics for continental Portugal only) paved: 60,351 km (including 519 km of expressways) unpaved: 9,825 km (1992 est.)

Waterways: 820 km navigable; relatively unimportant to national economy, used by shallow-draft craft limited to 300 metric-ton cargo capacity

Pipelines: crude oil 22 km; petroleum products 58 km