Portugal - Basic Data
aicep Portugal Global                                                                                                     ...
aicep Portugal Global                                                                                                     ...
aicep Portugal Global                                                                                                     ...
aicep Portugal Global                                                                                                     ...
aicep Portugal Global                                                                                                     ...
aicep Portugal Global                                                                                                     ...
aicep Portugal Global                                                                                                     ...
aicep Portugal Global                                                                                                     ...
Portugal details - Export & Investment
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Portugal details - Export & Investment

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Portugal details - Export & Investment

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Portugal details - Export & Investment

  1. 1. Portugal - Basic Data
  2. 2. aicep Portugal Global Portugal - Basic Data (March 2011)Index1. Background 3 1.1 Geography 3 1.2 Population and language 3 1.3 Summary 32. Politics 43. Infrastructures 44. Economy 4 4.1 Economic structure 4 4.2 Current economic situation and outlook 55. International trade 66. International investment 8 6.1 Foreign direct investment in Portugal 8 6.2 Portuguese foreign direct investment 9 aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 2
  3. 3. aicep Portugal Global Portugal - Basic Data (March 2011)Background The coast of mainland Portugal is mostly unbroken, except for two major estuaries (Tagus and Sado). There are also small bays (Peniche, Sines and Lagos) and lagoons (Vouga-Aveiro, ÓbidosMainland Portugal is geographically located in Europe’s West and Faro). Headlands are few in number, small in size but of greatCoast, on the Iberian Peninsula. It is bordered by Spain to the beauty: these include the Capes of Mondego, Carvoeiro, Roca,North and East and by the Atlantic Ocean to the West and South, Espichel, Sines, S. Vicente and Santa Maria.making it a privileged geo strategic location between Europe,America and Africa. Portugal’s agreeable climate offers mild winters and pleasantIn addition to the mainland, Portugal’s territory also includes summers. The wettest months are November and December,the Autonomous Regions of the Azores and Madeira, two whilst the driest are from April to September.archipelagos located in the Atlantic Ocean.Portuguese borders have remained unchanged since the XIIICentury, making Portugal one of the oldest countries in the Population and languageworld, with nearly 900 years of history that clearly demonstratesits strong identity and internal cohesion. Portugal’s population is estimated at 10.6 million people, of which more than half are economically active. The demographicGeography concentration is higher near the coastal areas, with Lisbon (the capital city) and Porto showing the highest population density.On mainland Portugal, the Tagus River, Portugal’s largest river,divides the high mountainous lands and plateaus of the North, The Portuguese language is spoken by more than 200 millionfrom the low lying plains of the South. Also the flat coastal area people spread over all continents: Europe, Africa, America andcontrasts with that of the inland. The highest peaks are found in Asia. This diversity greatly contributes to the strong historical anda mountainous range in the centre of the country, of which Serra cultural ties that Portugal has with the world.da Estrela is the highest with 1,991 m. On the archipelagos, Pico(2,351 m) is the highest peak in the Azores, while Pico Ruivo(1,862 m) is the highest peak in Madeira. Summary Area: 92,207.4a sq km Population (thousands): 10,636 (2010) Working population 5,581 (2010) (thousands): Population density 115.4 (2010) (inhabit./sq km): Official designation: Republic of Portugal Capital: Lisbon (2.1 million inhabit.– metropolitan area) Aveiro, Beja, Braga, Bragança, Castelo Branco, Coimbra, Évora, Faro, Funchal (in Madeira), District Capitals: Guarda, Leiria, Ponta Delgada (in the Azores), Portalegre, Porto, Santarém, Setúbal, Viana do Castelo, Vila Real and Viseu. Main religion: Roman Catholic Language: Portuguese Currency: Euro (in units of 100 cents) EUR = 200.482 PTE (fixed parity 1/01/99) EUR = 1.3257 USD (average rate in 2010) GDP at market prices: 172,837 million EUR (2010) GDP per capita: 16,300 EUR (2010) Source: INE - Instituto Nacional de Estatística; Banco de Portugal Note: (a) INE – Portuguese Statistical Yearbook 2010 aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 3
  4. 4. aicep Portugal Global Portugal - Basic Data (March 2011)Politics Maritime Routes: Mainland Portugal has nine major ports: Viana do Castelo and Leixões, in the North; Aveiro and Figueira da Foz,The Republic of Portugal is a Parliamentary democracy, based in the Centre; Lisbon and Setúbal in the Lisbon region; Sines inon the respect and the effective guarantees for fundamental the Alentejo; Faro and Portimão in the Algarve. The Autonomousrights and freedoms and the separation and interdependence of Region of the Azores has five ports and the Autonomous Regionpowers. Under the Portuguese Constitution, sovereign powers of Madeira has three. Only Lisbon and Leixões on the mainlandare vested in the President of the Republic, the Assembly of the offer passenger services, though the number of passengersRepublic, the Government and the Courts. embarking and disembarking at Leixões port is insignificant. The port infrastructure is thus primarily geared to handling goods.The President of the Republic is the Head of State, elected by This is particularly so at Sines (39.3% of total in 2010), Leixõesdirect universal suffrage for a five year term, with a maximum of (22.4%) and Lisbon (18.5%).two terms. The current President of the Republic is Aníbal CavacoSilva who was re-elected on 23rd January 2011. EconomyLegislative power lies with the Parliament (Assembly of the Economic structureRepublic) represented by 230 members which are elected bypopular vote to serve a four year term. Following the trend of its European partners, over the last decadesExecutive power lies with the Government, headed by the Prime one of the most important characteristics of the structure of theMinister, the Ministers and the Secretaries of State. José Socrates, Portuguese economy is the increase in the services sector. In 2010,Portugal’s Prime Minister and the leader of the Socialist Party agriculture, forestry and fishing generated only 2.7% of GVAwon the legislative elections in 2009. (compared with 24% in 1960), and 10.9% of employment, while industry, construction, energy and water represented 22.8% of GVAThe Portuguese judicial system consists of several categories of and 27.7% of employment. The services sector generated 74.5% ofCourt, independent of each other, with their own structure and GVA and represented 61.4% of the labour force.rules. Two of these categories are composed only by one Court(the Constitutional Court and the Court of Auditors). The Judicial, Apart from a greater focus on services, there has also been significantAdministrative and Fiscal Courts are numerous, hierarchically change in manufacturing, which has undergone a modernizationstructured and respond to a Supreme Court. In addition, there are process. Traditional manufacturing has been gradually replaced byMaritime Courts, Courts of Arbitration and Justices of the Peace. new activity sectors that offer a larger incorporation of technology and that have contributed to the growth of the Portuguese economy,Infrastructures namely motor vehicles and parts thereof, electronics, energy, pharmaceutical and the new technologies.Road Infrastructures: Portugal has one of the most developed Portugal’s geographic position also impacts on the growth of theroad networks in Europe, comprising of motorways (AE), main roads services sector. The mild Mediterranean climate regulated by the(IP), secondary roads (IC), national roads (EN) and municipal routes. influence of the Atlantic, together with its extensive coastline, areIn 2009, the mainland road network reached 13,112 km, of which significant factors driving the growth of the tourism industry.2,705 km was motorway, more than 1/5 of the total road network. GVA Breakdown – 2010Rail Network: The rail network comprises 3,600 km (2,842 km 2.7%with rail traffic) providing North-South connection down thecoastline and East-West across the country. Railway network 22.8%density tends to be more significant in regions with a higherpopulation concentration.Airports: There are 14 airports. On the mainland the three majorinternational airports are located in the coastal cities of Lisbon,Porto and Faro. A new airport is to be built in the Lisbon region. 74.5%Due to the isolation of the Autonomous Regions there are alarger number of airports. The Azores have nine and Madeira has Services Industry, construction, Agriculture, forestry, energy and water and fishingtwo. Most international airlines serve the country’s main airports.The Portuguese airline is TAP Portugal. Source: INE – Instituto Nacional de Estatística Note: GVA - Gross Value-Added aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 4
  5. 5. aicep Portugal Global Portugal - Basic Data (March 2011) initiated the rise allowing progress towards a more sustainable Employment Breakdown - 2010 economy; Portugal was seriously affected by the international 10.9% crisis, that strongly influenced the country’s economic activity performance since 2008, culminating with the contraction of 2.6% of GDP in 2009. However, the gradual improvement of demand on a global scale and of the economy of our main trade partners, which started at 27.7% the end of 2009, allowed Portugal to retake a growth trajectory 61.4% in 2010 (GDP rose 1.4% during the same period). The main reason for that recovery was the performance of our exports. In an uncertain financial market and with the negative effects of Services Industry, construction, Agriculture, forestry energy and water and fishing the risk of national debt default in accessing finance, the evolutionSource: INE – Instituto Nacional de Estatistica of the Portuguese economy continues to be determined by the necessity of budget consolidation and by the strengthening ofCurrent economic situation and outlook the process of adjustment of the macroeconomic imbalance, with repercussions in the economic growth and employment.After significant progress in the modernization of the economyover the last years, in conjunction with the implementation of The forecast indicates a new constraint in the economy for 2011consolidating budget measures and structural reforms which and a moderate improvement in 2012. Economic Indicators 2006 2007 2008 2009 2010 2011a 2012a GDP at market prices Million EUR 160,273 168,737 172,022 168,074 172,837 174,100 175,400 Million USD 201,944 231,170 252,872 233,623 229,873 217,625 210,480 Real change 1.4 2.4 0.0 -2.5 1.4 -1.4 0.3 Per capita Euro 15,143 15,906 16,194 15,805 16,300 16,350 16,437 USD 19,080 21,791 23,805 21,969 20,438 19,724 19,720 Per person employed Nominal change 3.5 5.1 1.4 0.5 4.4 2.3 0.7 Private consumption Million EUR 104,746 110,635 115,704 111,949 116,033 116,400 117,200 Real change 1.8 2.5 1.8 -1.0 2.0 -1.9 -1.0 Public consumption Million EUR 32,421 32,999 33,961 35,826 37,207 36,400 36,000 Real change -0.6 2.0 -0.5 -14.0 3.2 -6.6 -1.0 Investment/GFCF Million EUR 35,890 37,629 38,151 32,756 32,056 32,300 32,800 % of GDP 22.4 22.3 22.2 19.5 18.5 18.6 18.7 Real change -1.3 2.6 -1.8 -11.6 -4.8 -5.6 -1.3 GFCF (excl, construction) % of GDP 8.5 8.7 8.8 7.7 7.2 n.a. n.a. Real change 4.6 7.6 4.3 -11.6 -3.6 n.a. n.a. Population (b) ‘000 inhabitants 10,599 10,618 10,627 10,638 10,636 10,667 10,684 Employment (b) ‘000 individuals 5,160 5,170 5,198 5,054 4,978 4,900 4,900 Unemployment (b) ‘000 individuals 428 449 427 529 603 600 700 Rate of economic activity (b) % of total pop. > 15 years old 62.5 62.6 62.5 61.9 61.9 n.a. n.a. Unemployment rate Portugal (c) % of active population 7.7 8.0 7.6 9.5 10.8 11.1 11.2 Unemployment rate EU-27 (d) % of active population 8.2 7.2 7.0 8.9 9.6 9.5 9.1 Overall balance - General Government % of GDP -4.1 -2.8 -2.9 -9.3 -7.3 -7.4 -6.5 Public Debt % of GDP 64.7 62.7 65.3 76.1 82.8 88.8 92.4 Current Account Balance Million EUR -17,187 -17,074 -21,699 -18,362 -17,060 -13,928 -11,752 % of GDP -10.7 -10.1 -12.6 -10.9 -9.9 -8.0 -6.7 HCPI – Portugal Annual change – average 3.0 2.4 2.7 -0.9 1.4 3.6 2.0 HCPI – EU-27(d) Annual change - average 2.3 2.4 3.7 1.0 2.0 2.5 1.8Sources: GEE – Gabinete de Estratégia e Estudos based on INE – Instituto Nacional de Estatística, and Banco de Portugal, except where stated in contraryNotes: (a) Forecast: Eurostat; European Commission; Banco de Portugal; EIU - Economist Intelligence Unit (b) INE – Employment Statistics; EIU (c) INE; European Commission(d) Eurostat; European Commission Exchange rate EUR/USD – Banco de Portugal and EIU n.a. – not available aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 5
  6. 6. aicep Portugal Global Portugal - Basic Data (March 2011)International trade The largest positive growth rate in value is in exports to Spain, Germany, France and the USA, that together represented aAfter the loss verified in 2009, in 2010 there was a significant 50% increase of the total registered in 2010.increase in Portuguese exports. Portugal benefited from anincrease in international demand and from the economic In terms of traded products, in general there was an increaserecovery of our main trade partners, which started at the end of in 2010, in relation to the previous year, but the major2009, and was consolidated during 2010. contribution to the positive evolution of exports of goods was determined by Fuels to non-EU countries; Vehicles and otherThese factors were the reasons for an increase in exports of transport equipment, Pulp and paper, Plastics and rubber to thegoods and services, with a greater emphasis on goods (15.7%) EU countries.than on services (7.7%). A larger internal demand contributed to the increase of importsIn 2010, Portugal’s export markets for goods, continued to grow and a slight deterioration in the trade balance. As with exports,towards a broader diversification of trade partners (during the Fuels and Vehicles and other transport equipment, were thelast decade, EU countries have lost market share in favour of group of products that mostly contributed to the increase ofthird countries, which already accounted for ¼ of total exports). imports in 2010. Change % Portugal’s International Trade 2005 2006 2007 2008 2009 2010 (10/09) Trade in goods and services1 Exports (fob) Million EUR 43,375 50,495 55,486 57,066 48,339 54,470 12.7 Imports (fob) Million EUR 57,689 63,883 68,159 73,449 60,148 65,692 9.2 Balance (fob) Million EUR -14,314 -13,388 -12,673 -16,383 -11,809 -11,222 -5.0 % of GDP -9.3 -8.4 -7.5 -9.5 -7.0 -6.5 Trade in goods2 Exports (fob) Million EUR 31,137 35,640 38,309 38,950 31,768 36,769 15.7 Imports (cif) Million EUR 51,379 56,295 59,927 64,194 51,368 56,783 10.5 Balance (fob-cif) Million EUR -20,242 -20,654 -21,617 -25,244 -19,600 -20,014 2.1 % of GDP -12.4 -12.0 -11.9 -14.0 -11.7 -11.6Sources: (1) Banco de Portugal (Balance of Payments) (2) INE – Instituto Nacional de Estatística (initial data) Geographical Distribution - Exports - 2010 Geographical Distribution - Imports - 2010 1.7% 10.6% 16.3% 1.9% 1.1% 5.2% 2,2% 2.2% 6.6% 2.6% 74.0% 75.6% UE 27 NAFTA Mercosul (b) UE 27 NAFTA PALOP PALOP MAGHREB (a) Other Mercosul (a) MAGHREB (b) OtherSource: INE – Instituto Nacional de Estatística (initial data) Source: INE – Instituto Nacional de Estatística (initial data)Note: (a) Includes: Morocco, Algeria, Tunisia, Libya and Mauritania (b) Includes associate members Note: (a) Includes associate members (b) Includes: Morocco, Algeria, Tunisia, Libya and Mauritania aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 6
  7. 7. aicep Portugal Global Portugal - Basic Data (March 2011) Trading Partners – Main Clients - 2010 Trading Partners – Main Suppliers - 2010 22.6% 31.1% 26.6% 23.3% 1.2% 2.9% 1.8% 2.4% 3.6% 2.8% 3.8% 2.8% 3.8% 3.8% 13.0% 5.2% 5.2% 5.7% 13.9% 5.5% 11.8% 7.2% Spain Angola Belgium Spain Netherlands Nigeria Germany Netherlands Brazil Germany UK Brazil France Italy Others France Belgium Others UK USA Italy ChinaSource: INE – Instituto Nacional de Estatística (initial data) Source: INE – Instituto Nacional de Estatística (initial data) Exports – Main Products 0 14,9% Machinery and tools 16,2% Vehicles and other transport material 12,4% 11,7% Base metals 8,0% 7,8% Plastics and rubber 6,9% 6,4% Oil products 6,8% 5,0% 6,0% Clothing 6,8% Wood Pulp and paper 5,7% 4,7% Other products 5,6% 6,0% 5,5% Minerals and mineral products 5,6% 5,4% Agricultural Products 5,5% Food Products 5,2% 6,1% Chemical Products 5,0% 4,9% 4,1% Textile materials 4,3% Footwear 3,6% 4,0% Wood and cork 3,5% 3,7% Optical and precision instruments 1,1% 1,1% Skins and leather 0,3% 0,3% 2010 2009 Imports – Main Products 0 16,3% Machinery and tools 19,2% Oil products 14,7% 12,6% Vehicles and other transport material 14,1% 12,2% 10,0% Chemical Products 10,2% 9,5% Agricultural Products 10,0% Base metals 7,9% 7,7% Plastics and rubber 5,1% 4,9% 4,1% Food Products 4,5% 3,3% Other products 3,4% 3,0% Clothing 3,1% Textile materials 2,8% 2,7% 2,3% Wood Pulp and paper 2,5% Optical and precision instruments 2,2% 2,3% 1,4% Minerals and mineral products 1,6% Wood and cork 1,2% 1,1% Skins and leather 1,0% 1,0% Footwear 0,9% 2010 2009 0,9%Source: INE – Instituto Nacional de Estatística (initial data) aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 7
  8. 8. aicep Portugal Global Portugal - Basic Data (March 2011)International investment crisis, not only on the economy of the countries that traditionally invest overseas, but also of the main recipients, forcing them toForeign direct investment in Portugal rethink their strategies and their external ranking.Since 2000, FDI in Portugal has shown a steady growth, with By activity sector, in 2010, Wholesale and Retail Trade,gross investment ranging between 20 and 35 billion EUR and Manufacturing Industry and Financial and Insurance Activities werewhich has been directed towards the innovative and technological the sectors that most benefited from foreign capital in Portugal,based industries that have international markets as clients. representing, in total, around 82% of the total gross FDI.In 2010, FDI into Portugal reached a gross value of 35 billion The EU countries remain the main investors in Portugal (86.6%Euros, which represented an increase of 9.6% in relation to the in 2010), with Germany, France, United Kingdom and Spainprevious year. In net terms the reduction was significant reaching occupying the leading positions in the ranking. Outside the EU2743.7%. This unfavourable behaviour of net FDI results from a members, only Brazil and Switzerland appeared on the list of thestrong negative impact of the economic international financial top 10 foreign investors in Portugal. Trends in Foreign Direct Investment in Portugal 35,287 35,099 32,820 32,634 32,018 27,677 8,695 3,160 2,238 3,185 1,948 1,097 2005 2006 2007 2008 2009 2010 Gross investment Net investmentSource: Banco de Portugal (February 2011) Unit: Million EUR Foreign Direct Investment in Portugal Foreign Direct Investment in Portugal per Sector - 2010a per Country of Origin - 2010a 1.0% 0.6% 1.8% 5.4% 1.2% 6.6% 2.4% 3.1% 5.2% 18.3% 39.3% 5.6% 5.5% 7.0% 18.2% 10.3% 16.7% 13.6% 13.8% 24.4% Wholesale and retail trade Consultancy, scientific and technical activities Germany Netherlands Belgium Manufacturing Real estate activities France Luxembourg Ireland Financial and insurance activities Construction UK Brazil Others Information and Electricity, gas and water Spain Switzerland communication activities OthersSource: Banco de Portugal (February 2011) Note: (a) Gross Investment Source: Banco de Portugal (February 2011) Note: (a) Gross Investment aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 8
  9. 9. aicep Portugal Global Portugal - Basic Data (March 2011)Portuguese foreign direct investment In 2010, Portuguese companies invested mostly in the Financial and Insurance Activities sector (59% of the total). The mainOver the last 10 years gross Portuguese direct investment abroad markets for those investments were Luxembourg, Spain,(PFDI) was estimated at between 6 and 15 billion Euros. Netherlands and Brazil which, together, represented more than 60% of the total Portuguese FDI flow for that period.The period from the late 90’s and the beginning of the presentdecade was clearly marked by great outflows of Portuguese In recent years, there has been a broader diversification ofinvestment, mainly toward Spain and Brazil. destinations for Portuguese overseas investment, with EU-27 showing a reduction in total investment. Apart from Brazil, thereAfter an exceptionally positive year in 2007, the following three is an increase in interest for the PALOP’s (African Portugueseyears reflected a clear slow down of the Portuguese companies’ Speaking Countries), with particular emphasis on Angola, whichoverseas projects, as a consequence of the environment of received 4% of total Portuguese FDI in 2010) and for Easternuncertainty generated by the international financial economic European countries, in particular Poland (an increase of 242% incrisis, the gross transfers of overseas capital reached 5.8 billion 2010) and Romania (an increase of 30%), witch are part of theEuros, the lowest amount since 2003. 10 top countries of destination of Portuguese FDI. Trends in Portuguese Foreign Direct Investment 14,835 11,376 9,781 9,828 7,770 5,691 5,774 4,013 1,697 1,872 588 -6,500 2005 2006 2007 2008 2009 2010 Gross investment Net investmentSource: Banco de Portugal (February 2011) Unit: Million EUR Portuguese Foreign Direct Investment Portuguese Foreign Direct Investment per Sector - 2010a by Major Recipients - 2010a 0.7% 0.5% 5.8% 0.8% 19,7% 5.7% 22,0% 6.6% 1,5% 1,8% 8.6% 2,3% 3,2% 3,8% 59.3% 12.0% 3,9% 16,1% 11,3% 14,4% Financial and insurance Manufacturing activities Electricity, gas and water Luxembourg Angola Romania Consultancy, scientific and technical activities Information and Spain Poland France communication activities Wholesale and retail trade Netherlands USA Others Real estate operations Construction Brazil UK OthersSource: Banco de Portugal (February 2011) Note: (a) Gross Investment Source: Banco de Portugal (February 2011) Note: (a) Gross Investment aicep Portugal Global – Business Development Agency – Av. 5 de Outubro, 101, 1050-051 LISBOA Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 aicep@portugalglobal.pt www.portugalglobal.pt 9

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