Portugal - Country Profile (Aicep - 2012)

Portugal - Country Profile
April 2012
aicep Portugal Global Portugal - Country Profile (April 2012)
Index
1. History 2. Culture 3. Geography and socio-economic characteristics 3.1 Geography, climate 3.2 Socio-economic indicators 4. Political and Administrative Organization 4.1 Political structure 4.2 Administrative organization 5. Population 5.1 Regional breakdown 5.2 Migrations 5.3 Active population 5.4 Schooling levels of the active population 6. Infrastructure networks 6.1 Roadways 6.2 Railways 6.3 Ports 6.4 Air transport 6.5 Technological infrastructures 6.6 Policies for the future 7. Resources and productive structure 7.1 Agriculture, forestry and fishing 7.2 Industry 7.3 Construction 7.4 Services
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5 6 8 8 8 10 10 11 13 13 14 15 15 17 17 17 18 18 19 21 22 23 27 37 38
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8. Economic situation 8.1 Recent economic policy 8.2 The economic outlook 8.3 The regional economies 9. Regional economic framework Portugal and the European Union 10. Foreign trade 10.1 Trade balance trends 10.2 Main trading partners 10.3 Composition of trade 10.4 International trade and the regions 11. Investment 11.1 Foreign direct investment trends in Portugal 11.1.1 Principal investors by country 11.1.2 Foreign direct investment by major sectors 11.1.3 Recent foreign direct investment projects in Portugal 11.2 Trends in Portuguese foreign direct investment 11.2.1 Portuguese foreign direct investment by major recipients 11.2.2 Main sectors 11.2.3 Recent projects indicating the internationalization of Portuguese companies 12. Tourism 13. International and regional relations 14. Legal requirements for market access 14.1 Intra-EU exchange procedures 14.2 General import procedures 14.3 Foreign investment procedures ANNEXES Annex 1 Custom procedures Annex 2 Import documentation Annex 3 Useful Internet addresses
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76 77 78
The battle of So Mamede which occurred in 1128, between the royalty of Portucale led by Dom Afonso Henriques and the Gallician nobles led by his mother Dona Teresa, was decisive for the birth of Portugal. Once the battle was won and Dona Teresa was expelled from the Condado Portucalense, Dom Afonso Henriques declared the principality independent. Various skirmishes continued against Len and Castile and against the Muslims, but it was not until the Battle of Ourique, in 1139, that Portugals independence was declared and Dom Afonso Henriques, with the help of Portuguese chiefs, was proclaimed sovereign - Dom Afonso I of Portugal. However, the independence of Portugal would only be recognized by the King of Castile in 1143 with the signing of the Treaty of Zamora. The dream of a new Brazil (this time in Africa, linking Angola There followed a long period of conquests and a number of treaties were signed between Portugal and the Kingdom of Castile and, in 1297, during the reign of Dom Dinis, the actual frontiers of Portugal were defined (the oldest in Europe). and Mozambique through regularly travelled territories that were never settled) was hindered by English imperial ambitions, stirring up forces for a change in political regime. Thus, at the beginning of the twentieth century the First Republic was established in Portugal (1910). The fourteenth century saw the appearance of the first bright lights of the Golden Age of Portugal. Its language began to develop apart from the Gallic-Portuguese, the Court became distinguished with intellectual brilliance on a European scale and the University was founded. Due to the financial crisis that swept Europe after World War I and to domestic political instability, in 1926 a military coup put an end to the parliamentary regime of the First Republic. In 1933, the regime in power gave way to the Estado Novo, or New State, which ruled the country until 1974. The fifteenth century marked the beginning of the Discoveries, during which Portugal witnesses a period of great expansion across the oceans. The archipelagos of Madeira (1419) and the Azores (1425) were officially discovered and a few cities in the Kingdom of Morocco were conquered. Among the numerous personalities involved with this period the following stand out: Diogo Co, for the discovery of the African coast, Bartolomeu Dias, who in 1488 sailed around the Cape of Good Hope and opened the route to the discovery of India by Vasco da Gama (1498) and, lastly, Pedro lvares Cabral who discovered Brazil in 1500. 5 With the end of the imperial era (with the liberation, in the mid 1970s, of Angola, Cape Verde, Guinea Bissau, Mozambique, and So Tom and Prncipe), Portugal became a member of the European Economic Community in 1986 and later joined the Euro Area, but without severing the On 25 April 1974 the Armed Forces Movement cast out the existing political regime that ruled Portugal, replacing it with a democratic regime. With democracy came economic and social development, flourishing cultural and scientific activity and the affirmation of innovation in Portugal.
Padro dos Descobrimentos (Monument to the Discoveries)
Rui Morais de Sousa
1. History
aicep Portugal Global Portugal - Country Profile (April 2012) strong links existing with the other seven Portuguesespeaking countries (which led to the creation of the Community of Portuguese Speaking Countries, or CPLP, Comunidade dos Pases de Lngua Portuguesa) and with the Portuguese communities scattered throughout the world. Clrigos Tower, in granite, in Oporto, and the Romanesque Cathedral of Braga. In many monuments one can observe in stone our relationship with the sea. Such can be seen in contemporary Portuguese architecture where names like lvaro Siza Vieira or Eduardo Souto de Moura stand out, particularly in the Park of Nations, the site of the last Currently, Portugal is a country that enjoys social and political stability that asserts itself more and more due to its ability to engage in dialogue and to understand diversity
Rui Morais de Sousa
worlds fair of the twentieth century which was dedicated to the theme of the oceans.
based on its culture and style of life resulting from centuries of living side by side with other peoples.
2. Culture
Portuguese culture is based on a past marked by the peoples that occupied its territory, of which several outstanding examples remain: the temple of Diana in vora from the Roman period and the Moorish architecture so typical of cities in the South of Portugal, such as Olho and Tavira.
Portuguese art was enriched by various foreign influences during the centuries. The Portuguese discoveries around the world led to the country becoming more receptive to oriental influences, as well as the period of the fifteenth century when the discovery of Brazil and its riches influenced the development of the Baroque style.
Pavilho de Portugal (Pavilion of Portugal) - Parque das Naes (Park of Nations)
The splendour of sculpture was expressed in the magnificent twelfth and thirteenth century tombs and in the Baroque sculptures of the eighteenth century, the crches of Joaquim Machado de Castro truly stand out. The
In architecture, Roman and Gothic influences gave the country some of its most imposing cathedrals. In the fifteenth century a completely national style was born the Manueline style that expressed the blending together of various art forms into a luxurious and ornamental style. Various examples of great architectural works can be cited: the Jeronimos Monastery in Lisbon; the S (cathedral) of Lisbon, where traces of Roman construction are still visible on the facade; the Palace of Justice in Lisbon, an example of austere modern architecture; the Castle and Church of the Convent of Christ in Tomar; the Portuguese Abbey of Santa Maria da Vitria (in the Gothic style); the 6
classic and romantic traditions of Italy and France, besides influencing the works of Machado de Castro, were also determining factors in the plastic arts expression of Antnio Soares dos Reis, in the nineteenth century.
The school of painters of the fifteenth century was the precursor of a patrician style of painting of Flemish painters, who left an eminent heritage in religious art by decorating various palaces and convents in Portugal. The romantic period of the nineteenth century, although late, led to the rebirth of national art. There followed a period of natural realism that opened doors to new experiences that
aicep Portugal Global Portugal - Country Profile (April 2012) followed in the twentieth century; worth noting are the works of Maria Helena Vieira da Silva in abstract painting and of Carlos Botelho in Lisbon street scenes. In the theatre, the outstanding figures are Gil Vicente, Antnio Jos da Silva (known as the Jew) and Bernardo Santareno.
The ceramic tile sector is equally very rich. Many sixteenth and seventeenth century buildings are covered in tiles. They were also chosen to decorate the walls of rooms and entrance halls of various palaces and stately mansions where there are panels of tiles, with blue and white colours predominating.
Popular music and dance and the traditional fado continue to be fundamental forms of musical expression of the country. The most famous fadista in the world was Amlia Rodrigues, but today names like Carlos do Carmo or Marisa keep alive this type of song long associated with Portugal.
Exceptionally good examples can be seen in the Ptio of Carranca, in the Pao of Sintra, in the Church of So Roque in Lisbon and in the Quinta da Bacalhoa, in Vila Fresca de Azeito, near Setbal. Even the Lisbon subway/ underground authority decorated some of its stations with tiles signed by contemporary Portuguese artists.
Literature stands out through the richness and variety of its lyric poetry, through writings exalting history and for subtlety in drama, biographies and essays. The first songbooks, known as cancioneiros are witness to a school of poetry based on love, a style that crossed the border and influenced Spanish cancioneiros. The romantic style absorbed the influence of our neighbours, although without preference for the heroic. Lastly, speaking of Portuguese culture is tantamount to the ability to spread the language. Portuguese is the fifth The Lusadas of Lus de Cames is the great epic work of the sixteenth century; it is the classic poem that exalts the exploits of the Portuguese beyond the sea. most spoken language in the world and the third most spoken in the West; more than 210 million people speak the language.
Centro Cultural de Belm (Lisbon)
There exist other well known names in poetry as, for example, Fernando Pessoa, Eugnio de Andrade, Florbela Espanca, Cesrio Verde, Antnio Ramos Rosa, Mrio Cesariny and Antero do Quental, among others.
It is the official language of Angola, Brazil, Cape Verde, Guinea-Bissau, Mozambique, and So Tom and Prncipe. It is also one of the official languages of Equatorial Guinea (together with Spanish and French), East Timor (with
As for prose, there are Damio de Gis, Father Antnio Vieira, Almeida Garrett, Ea de Queiroz, Camilo Castelo Branco, Miguel Torga, Fernando Namora, Jos Cardoso Pires, Antnio Lobo Antunes and Jos Saramago (winner of the Nobel Prize for literature in 1998). 7
Ttum) and Macao (with Cantonese). It is even spoken in former Portuguese India (Goa, Damo and Diu), Andorra, Luxembourg and Nambia, in addition to having official status in the European Union, Mercosul and the African Union.
Antnio Sacchetti
3. Geography and Socio-Economic Characteristics

3.1 Geography, climate
Portugal is geographically situated on the west coast of Europe, in the Iberian Peninsula. It borders Spain on the north and east, and the Atlantic Ocean on the west and south. Its frontiers were defined as long ago as the thirteenth century and include, in addition to the continental territory, the Autonomous Regions of the Azores and Madeira, archipelagos situated in the Atlantic Ocean.
Even the coastal areas, generally of lower altitude, are distinct from the highlands of the interior. The highest altitudes are located in a mountain chain situated in the centre of the country: the Serra da Estrela, at 1,991 meters in altitude, is the highest point. In the archipelagos, the mountain of Pico (2,351 meters) is the highest point in the Azores and the Pico Ruivo (1,862 meters) is the top elevation in Madeira.
On the generally not so indented continental coastline, the main deltas are estuaries (Tagus and Sado). Then there are small bays (Peniche, Sines, Lagos) and lagoon-type formations (Vouga-Aveiro, bidos, Faro). The capes of the
With a total area of 92,212 km2, Portugal benefits from an excellent geographical location, being situated in a geostrategical position between Europe, America and Africa.
coastline are few in number and small in size, but of great beauty: these are the capes of Mondego, Carvoeiro, Roca, Espichel, Sines, So Vicente, and Santa Maria.
The climate is characterized by mild winters and balmy summers. The rainiest months are November and December, while the period with the least precipitation occurs between April and September.
3.2 Socio-economic indicators

In the last ten years a series of extensive reforms were adopted which had a significant impact on the level of economic development and social cohesion (protection and social inclusion) in Portugal.
The fight against extreme poverty, minimum pensions, the Social Inclusion Income Law, and the Solidarity Supplement for the Elderly Regulation, were paradigm measures in social protection. As for measures relating to social inclusion, the highlight is the assistance to families through care centres, investment in equipment, including a network of continuing care for the elderly and dependent persons, On the continental territory, the Tagus (the longest river) divides the more mountainous north from the south with its plains and lower elevations. 8 and local intervention to combat poverty and exclusion, taking into account local requirements and the people most in need of assistance.
Socio-economic indicators
Demography Total populationa Birth rate Thousands Per Thousand 2006 10,586 10.0 2007 10,604 9.7 2008 10,623 9.8 2009 10,638 9.4 2010 10,636 9.5
Life expectancy at birth Education Preschool Elementary and secondary Higher education Public spending on education b Culture Museums, zoos, botanic gardens and aquariums visitors Art gallery exhibitions Publications c Local government spending on cultural activities Health Doctors Hospitals Hospital beds Health centres Pharmacies and mobile pharmacy points Current public spending on health b Information Society Internet subscribers Access to Internet service
Years
78.2 2006/2007
78.5 2007/2008 264 1,512 377 6.1 2007 10.0 6,609 1,994 802.8 2007 37,904 198 36,220 377 3,038 5.4 2007 1,612 15.2
78.7 2008/2009 266 1,537 373 6.3 2008 11.6 6,859 1,896 863.8 2008 38,932 189 35,803 377 3,037 5.5 2008 1,676 15.8
78.9 2009/2010 275 1,782 384 6.7 2009 12.9 7,235 1,910 997.7 2009 40,095 186 35,635 375 3,046 5.7 2009 1,898 17.8
79.2 2010/2011 274 1,740 396 5.0d 2010 13.8 7,231 1,852 721.1 2010 41,431 226 35,601 376 3,055 5.7d 2010 2,104 19.8
Thousands Thousands Thousands % of GDP
262 1,493 367 6.6 2006
Millions N N 106 EUR
10.3 6,463 2,054 802.9 2006
N N N N N % of GDP
36,924 200 36,605 378 3,037 5.6 2006
Thousands Rate of Penetration Rate of Penetration/ 100 Inhab. Subscribers (thousands) Subscribers/ 100 Inhab. Thousands Subscribers/ % Population Receipts/ % of GDP
1,580 14.9
Main telephone lines
40.0
39.7
39.1
40.8
42.2
Mobil telephone service subscribers Penetration rate land line service Cable television subscribers Penetration rate of cable network Share of the communications sector
12,236 115 1,421 13.4 5.4
13,477 127 1,489 14.0 5.2
14,953 141 1,475 13.9 5.1
15,929 151 1,452 13.6 5.1
n.a. 155 1,438 13.5 5.0
Source: INE - Instituto Nacional de Estatstica; Autoridade Nacional de Comunicaes Situao das Comunicaes 2010 (Communications Situation 2010) Notes: (a) INE Estatsticas do Emprego Employment Statistics, 4th quarter 2011 (b) Direco Geral do Oramento/Ministrio das Finanas (c) Daily, weekly, monthly and annual frequency (d) Estimates
4. Political and Administrative Organization

4.1 Political structure
As concerns the political structure, the Portuguese Republic is a nation founded on democratic law, based on popular suffrage, pluralism of expression and democratic political organization, respect and the guarantee of fundamental rights and liberties, and on the separation and independence of powers.
the political-administrative statutes of the Autonomous Regions, approve the State Budget, make proposals to the President of the Republic concerning whether to hold referenda, evaluate the programs of the Government, deal with tax matters and evaluate activities of the Government and the Administration.
The Assembly of the Republic can be dissolved by the President of the Republic following a hearing with the parties represented in the Assembly as well as the Council of State.
The sovereign bodies are the President of the Republic, the Assembly of the Republic, the Government, and the Courts.
The current President of the Assembly of the Republic is Assuno Esteves and the distribution of the party seats is as follows: Social-Democratic Party (PPD/PSD) 108
In the Portuguese constitutional system, the President of the Republic is elected by direct and universal suffrage for a term of five years and cannot be re-elected for a third consecutive term. The President of the Republic is the supreme representative of the Portuguese Republic, he guarantees national independence, the unity of the State and the normal functioning of the democratic institutions, and is, in effect, the Supreme Commander of the Armed forces.
deputies; Socialist Party (PS) 74 deputies; Popular Party (CDS/PP) 24 deputies; the Portuguese Communist Party and the Ecologist Party/ the Greens (PCP/PEV) 16 deputies and the Left Bloc (BE) 8 deputies.
The Government is the principal body in the Public Administration and is responsible for setting general policy for the country. It is composed of the Prime Minister, the Cabinet and the Secretaries of State.
Among his sovereign powers, the most important are the dissolution of the National Assembly, the nomination of the Prime Minister and the other members of the cabinet, the promulgation or veto of laws and decree laws, the naming of ambassadors upon government proposal, and the ratification of international treaties. The current President of the Republic is Anbal Cavaco Silva, re-elected on 23 January 2011. The Prime Minister, who presides over the Council of Ministers (Cabinet) meetings, is nominated by the President of the Republic. The other members of the Government are nominated by the President of the Republic upon the proposal of the Prime Minister. The current Prime Minister is Pedro Passos Coelho, leader of the Social-Democratic Party. Legislative powers are vested in the Assembly of the Republic which is comprised of 230 deputies, elected by direct universal suffrage for a term of four years. The last elections took place on 05 June of 2011. In essence, it is up to the Government to guarantee the operation of the public administration, to promote the satisfaction of collective needs and guarantee the proper execution of laws. It also has legislative competencies that The Assembly of the Republic has responsibilities at the political, legislative and fiscal levels. Among some of its duties are to approve constitutional changes, approve 10 in some cases are its own and in other cases the function is shared with the Assembly of the Republic (relative competence).
aicep Portugal Global Portugal - Country Profile (April 2012) The Courts are the sovereign bodies charged with the jurisdiction of administering justice. They are independent and are only subject to the law. The Portuguese judicial system comprises various categories or rank of courts, independent among themselves, each with its own structure and procedures. Only two of these categories include a Court (the Constitutional Court and the Court of Audits); the rest include a plurality of courts, with a hierarchical structure and a superior court at the top of the hierarchy. There could also exist Maritime Courts, Courts of Arbitration and Justice of the Peace Courts. As for the latter, its competency relates to exclusively to the evaluation and judgment of declarative actions whose importance does not go beyond the jurisdiction of the Court of First Instance. The Court of Audits This court not only has jurisdictional functions (fiscalization of legality regarding public expenditures and judgment of public accounts), but also expresses its views on the General Government Budget, with the purpose of enabling the Assembly of the Republic to render evaluation and judgment.
4.2 Administrative organization

Following accession to the European Community, for statistical purposes, the territory of Portugal was classified according to the Nomenclature of Territorial Units (commonly known as the NUT system from the French acronym), to establish similar designations that allow comparisons with other countries within the European The Constitutional Court It occupies a special and autonomous rank in the order of courts. Its very specific formation and functions make it stand out. It is the court of recourse relating to decisions of the other courts in matters concerning constitutionality. It is composed of 13 judges, of which 10 are designated by the Assembly of the Republic and three co-opted by them. The judges, who elect the President of the Constitutional Court, have a nine-year mandate that cannot be renewed. The Judicial Courts They are the first category of common courts and they have their own hierarchical structure, with judicial courts of first and second instance and the Supreme Court of Justice the topmost body. The Administrative and Fiscal Courts These courts are encharged with judgment of actions and recourse destined to determine the litigation arising from administrative and fiscal affairs. These courts have their own hierarchical structure, with the Supreme Administrative Tribunal the top ranking court. 11 They in turn are divided into 30 NUT III units equivalent to sub-regions (28 on the Continent and the two Autonomous Regions). Union. Portugal is designated NUT I, divided into 7 NUT II units equivalent to regions North Region; Centre Region; Lisbon Region; Alentejo Region; Algarve Region; the Autonomous Region of Madeira; and the Autonomous Region of the Azores.
Regions (NUT II) determined by areas

Regionsa Alentejo Centre North Algarve Lisbon Azores Madeira Total
Source: INE Portugal Statistical Yearbook, 2010 Note: (a) Includes 362 km2 of interior waterways
Areas (km2) 31,605 28,199 21,286 4,997 3,002 2,322 801 92,212
% of total 34.3 30.6 23.1 5.4 3.2 2.5 0.9 100.0
Sub-Regions NUT III Regions of the Continent

North Minho-Lima Cavado Ave Grande Porto Tmega Entre Douro e Vouga Douro Alto Trs-os-Montes Centre Baixo Vouga Baixo Mondego Pinhal Litoral Pinhal Interior Norte Do-Lafes Pinhal Interior Sul Serra da Estrela Beira Interior Norte Beira Interior Sul Cova da Beira Oeste Mdio Tejo Lisbon Grande Lisboa Pennsula de Setbal Alentejo Alentejo Litoral Alto Alentejo Alentejo Central Baixo Alentejo Lezria do Tejo Algarve Algarve
Oporto, Santarm, Setbal, Viana do Castelo, Vila Real, and Viseu. The Districts and the Autonomous Regions are subdivided into 308 Councils/Municipalities and 4,259 towns. The new juridical regime of municipal association1 determined the organization of municipal associations which can be classified into two types: for multiple ends or for specific purposes. The municipal associations with multiple purposes, denominated intermunicipal communities (CIM), are comprised of municipalities that correspond to one or more NUTS III and take those names.
Municipal associations with specific purposes were created to achieve those common goals of the municipalities that comprise them, in the defense of collective rights of a sectoral, regional or local nature. Two metropolitan areas (MA) also were created: Lisbon which includes the municipality of Greater Lisbon and the Setbal Peninsula, and Oporto which includes the municipality of Greater Oporto and the EnteDouro and Vouga, regulated by its own charter.
Major cities
It is worth highlighting the importance of cities, both in terms of geography and politics. There are now (2012) 159 cities in Portugal (146 on the Continent and 13 in the Autonomous Regions), of which 19 are District Capitals. Among the oldest Portuguese cities are Lisbon, Oporto, Viseu, Braga, Coimbra, vora, Guarda, Lamego, Silves, Faro, Lagos, and Tavira, with pre-Portucalian origins that are
Autonomous Regions
A. R. Azores A. R. Madeira A. R. Azores A. R. Madeira
repositories of an urban history that is of Roman or Arab origin or sometimes both, as in the case of the cities in the South and even Lisbon.
Source: INE Instituto Nacional de Estatstica Note: This division of regions and their subdivisions is based on the NUTS system (Nomenclature of Territorial Units for Statistics).
The city of Lisbon (population of about 470,000 2 million in Greater Lisbon) has been the capital of Portugal since the twelfth century, is the largest city in the country, the main economic hub, and has one of the largest maritime ports and the largest airport. The city of Oporto (about 205,000 inhabitants 1.3 million in Greater Oporto) is the second largest city.
1 Law n 45/2008 of 27 August
The Alentejo and the Centre share among themselves the largest territories in the country, with 34% and 31% of the total, respectively, the Autonomous Region of Madeira comprises the smallest area. According to the NUTS statistical classification, Portugal is divided into 18 Districts on the Continent and they are the following: Aveiro, Beja, Braga, Bragana, Castelo Branco, Coimbra, vora, Faro, Guarda, Leiria, Lisboa, Portalegre, 12
5. Population
The preliminary results of the 2011 Census, conducted on the 21st of March 2011, indicate that the resident population of Portugal consisted of 10,561,614 inhabitants, which implies an increase of about 2% compared with a decade ago.
24 years lost out in relative terms, reaching 25.9% in the same year. In 2011, the total population of Portugal registered a marginal increase of 0.1%.
According to the central scenario3 of the INE Projections of the resident population of Portugal, 2008-2060 (at 31 December), the resident population of Portugal will continue to increase up to 2035 when the population will
The number of families increased by about 10.8% but the average family size continues to decline and now comprises 2.6 members. On the other hand, the demographic characteristics reveal that population ageing has worsened in the last decade. In 2011, nearly 19% of the population of Portugal was aged 65 years or older. According to INE2 , the ratio of persons aged 65 and over and the population up to 14 years (the old age index) reached a peak in 2011:120.6, whereas in the year 2000 this ratio was 102.2, and in 1990 it had been 68.1. Moreover, the share of the population under the age of
2 INE - Employment Statistics Employment Survey, 2011
reach 10,897,600 individuals. Beginning that year, the trend will reverse, until the year 2060 when the population will be below the starting point year. In 2060, the total population will reach only 10,364,200 individuals.
5.1 Regional breakdown

More than three-fifths of the Portuguese population is concentrated in the North Region (which includes the city of Oporto) and the Lisbon Region. The population decline in the rural areas of the interior has continued to affect part
3 The central scenario has as its base the resident population in Portugal as of
January 1, 2008 and comprises a group of variables that are considered most probable considering recent demographic developments.
Population of Portugal - 2006-2011 Trends

Unidade Total population 0-14 years 15-64 years 65 years & over Male ratio (no. of men per 100 women) Actual increase
thousands thousands thousands thousands
2006 10,585.9 1,640.4 7,115.8 1,829.7 93.8 0.22
2007 10,604.4 1,634.9 7,135.0 1,834.6 93.8 0.17
2008 10,622.7 1,624.6 7,145.1 1,853.0 93.8 0.17
2009 10,638.4 1,615.0 7,142.6 1,880.7 93.8 0.15
2010 10,635.8 1,614.4 7,113.7 1,907.7 93.8 -0.02
2011 10,646.7 1,609.5 7,096.6 1,940.6 93.8 0.10
(%) (%)
Level of schooling completed (15 years and older) Basic (3rd level) No. (% change) No. Secondary and post secondary (% change) No. Tertiary (% change)
Source: INE - Instituto Nacional de Estatstica - Employment Statistics - 2011
6,795.2 -0.78 1,249.3 2.81 901.0 6.16
6,796.5 0.02 1,245.5 -0.30 927.6 2.95
6,776.8 -0.29 1,250.9 0.43 970.4 4.61
6,690.4 -1.27 1,324.7 5.90 1,008.2 3.90
6,539.8 -2.25 1,416.6 6.94 1,065.0 5.63
6,311.2 -3-50 1,518.4 7.19 1,207.6 13.39
13
aicep Portugal Global Portugal - Country Profile (April 2012) of the North Region (excluding Oporto), the Centre and above all, the Alentejo. The population distribution around the territory of the continent shows a contrast between the coast and the interior of the country. Its development in the last few years indicates a greater concentration of population near the coast and a decline in the number of residents in the interior regions of the country. Portugal experienced inflows of immigrants from its former colonies in Africa, from Central and Eastern Europe, and more recently from Brazil, but there were also small groups of immigrants that originated from India, China Similar to what was observed throughout the country, in 2011 there was a slight increase in the average population residing in most of the regions, except for the Alentejo (-0.49%) and the Centre (-0.21%) which continued to show a declining trend. Economic immigration is a recent phenomenon and represents a radical change compared with what took place IIn analyzing the demographic density of the Portuguese population according to the various regions of the country, Lisbon is the clear leader. In second place is Madeira with about one-third the population density of the first. The greatest gap seems to lie in the North Region which, apart from having the largest resident population in relative terms, shows a population density about 5 times lower than that of Lisbon. Then follow the Azores, the Centre, and the Algarve (the latter two are roughly the same), and finally the Alentejo, with the lowest ratio of inhabitants/km2. in the 1960s and 1970s when many Portuguese used to emigrate in search of a better life. and Pakistan, as well as from some other countries of Latin America and the northern part of Africa. inherent characteristics and its duration. Since 1993, net migration has been the primary source of Portugals population growth.
Until the 1990s, most of the immigrants to Portugal came from Portuguese speaking countries, especially Cape Verde and Angola. Beginning in 1999, Portugal began to receive a different and massive kind of immigration coming from the Eastern European countries, divided into two groups: the Slavs Ukrainians, Russians and Bulgarians; and the Latin people from the east Romanians and Moldavians. In 2003, this type of immigration fell, having been substituted by Brazilians and, to a lesser extent, by Asians of various origins (namely Indians, Pakistanis and Chinese).
Regional breakdown Annual Average 2010

Regions (a) North Lisbon Centre Alentejo Algarve Madeira Azores Total Population Thousands 3,738.8 2,835.0 2,379.5 751.0 437.9 247.6 245.9 10,635.8 % of total 35.2 26.7 22.4 7.0 4.1 2.3 2.3 100.0 Density (inhab./km2) 176.0 943.3 84.4 23.8 86.9 308.8 105.7 115.4
In 2010, in Portugal there were 445,2624 citizens of foreign nationality that had legal residency status, indicating a decline of 2% from the previous year. Among these, 39.7% came from Europe, 22.7% from Portuguesespeaking African countries, 26.8% were Brazilians, and lastly, 3.5% were from China.
The foreign population is much younger than the native population and comprises mostly members of the active labour force. Classified by gender, the men are the larger
Source: INE Instituto Nacional de Estatstica Note: (a) Regions based on NUT (Nomenclature of Territorial Units for Statistical purposes)
5.2 Migrations
The contribution of migration to the dynamics of population growth depends on the interpretation, the 14
component, being the mostly likely to emigrate while their family members follow later and then they tend to provide a more balanced situation.
4 Data available as of July 2010.
aicep Portugal Global Portugal - Country Profile (April 2012) Concerning Portuguese emigration, at first there was a big movement to Brazil that occurred at the beginning of the past century that lasted until the 1920s, followed by a trend towards Europe that occurred during the period of the colonial wars in the 1960s. Both were for periods of long duration. Starting at about the end of the 1980s, there have been emigration flows that have a more temporary nature and which continue today. About 4.5 million Portuguese live outside the country, a figure that is equivalent to nearly half of the domestic resident population. Very large communities of expatriates exist in Brazil, France, Germany, Switzerland, Luxembourg, Canada, and South Africa, among other countries. The employed population totaled 4,837,000 individuals in 2011, corresponding to a decline of 2.8% compared with the previous year. The employment rate (ages 15 and over) was 53.5%, but below that of 2010, due the working population having declined more than that of the active age population. As per NUTS II, only the Alentejo region registered a marginal increase in the employed population (0.2%). According to NUTS II, in 2011 there was an increase in the active population in all regions, except in the North (-0.15%) and the Centre (-5.5%), compared with the previous year. The number of active participants in the labor force who completed secondary, post-secondary and tertiary education increased so that in 2011, 18.1% of the active population had received some form of higher education.
5.3 Active population

Immigration now is helping to sustain the population in the labour force, whose rate of growth has not been able to compensate for the ageing of the population and the increase in life expectancy (74 years for men and 80.6 years for women, according to the OECD), a factor which is affecting not only Portugal, but the vast majority of Western European countries.
In terms of the short/medium term, the distribution of population employed by sectors of activity is relatively stable. There has been a movement going on for the past 25 or 30 years towards a greater number of people finding employment in the services sector (62.8% of the total in 2011), a trend that also has been observed in our other European partners.
According to INE5 , in 2011 the active population and the labor force participation rate (population aged 15 years or more) did not change much compared with 2010. The active population totaled 5,543,200 individuals, indicating an increase of 0.7% relative to the prior year, and the labor force participation rate remained at 61.3%, or 0.6% lower than the year before. The male labor force participation rate was 68.0% and that of females 55.2%. This relative stability in the supply of labor resulted from a decline in the employed population (141,200) being compensated for by a similar increase of the number of unemployed workers (103,500). By age bracket, there was a drop in the active population aged between 15 and 34 years of age (-0.8%) while the bracket comprising those aged between 35 and 64 years increased 0.36%.
5 INE - Employment Statistics, 2011
5.4 Schooling levels of the active population

Within the framework of the demands of the new global economy, the qualification of persons in the labour force is a major factor affecting competitiveness, economic growth, employment, and possible salary improvement.
Trends in population employed by sector of activity

1986 Agriculture, forestry and fishing Industry, construction, energy & water Services 2009 (%) 21.9 33.7 44.3 11.2 28.2 60.6 10.9 27.7 61.4 9.9 27.3 62.8 2010 2011
Source: NE - Employment Statistics, 2011
15
aicep Portugal Global Portugal - Country Profile (April 2012) As already noted, Portugal shows some not so positive indicators regarding the education and skill level of its active population that have been the focus of public policy efforts to upgrade qualifications in the human resources area. As noted from the preliminary 2011 Census results, an enormous effort has developed concerning this matter. In the past decade, Portugal once again showed an increase in the educational level of its population. In 2011, there were 1,262,449 individuals who had completed a tertiary education, about double the number noted in 2001. This excellent position is due to the development of In February 2012, the European Commission published, through its Eurydice Network, the report Key Data on Education in Europe 2012, which presents a series of data required to achieve policies associated with the Europe 2020 Strategy and analyzes the development of European educational systems over the last decade6. It is the strategic objective of the Portuguese Government to continue a strong wager on the professional formation Concerning Portugal, we can draw the following conclusion: in the school year 2009/2010, the percentage of the population registered as attending educational courses at any level (from kindergarten to tertiary) was 22.9%, much higher than the rate observed in 2000, and also higher than the EU27 average (21.5%). In this context, there is a current appraisal of the New The launch of the New Opportunities Program (Programa Novas Oportunidades) in 2005, based on two fundamental points: to allow the qualification of a million persons (focusing on adults) in the active population by 2010, and expand the number of qualifying professional courses (focusing on youth) at the secondary level in order that they represent, within the same time frame, half of the total offers at the secondary level, occurred as a response to enable Portugal to reach a similar level of manpower qualification with the rest of Europe and to strengthen the countrys competitiveness in the medium and long term, by investing in the constant improvement in the educational opportunities of both its young people and adults. There will be an announcement by September 2012 regarding changes that are to be introduced in the structure and objectives of the Program. In the meantime, 301 New Opportunities Centres will be kept functioning until August 2012, which will allow those enrolled to complete their certification process.
7 This report assessed the state of the art implementation of measures and policies
According to a report7 from the Directorate General for Education and Culture of the European Commission entitled Further measures to implement the action plan on adult learning: Updating the existing inventory on validation of non-formal and informal learning: Final report8 , Portugal together with Finland, France, the Netherlands, and Norway is one of five countries classified at the top level (High) in what concerns the level of development in the validation of apprenticeship training, both non-formal and informal.
the National System of Recognition, Validation and Certification of Competencies (SRCS), starting with the New Opportunities Initiative, which is among the policies intended to reduce the low qualification levels of the adult population.
of youth, with the goal of a genuine valorization of the qualification of the Portuguese people. They expect to improve their educational and professional orientation and promote more rigorous instruction relating to practical formation needed in the workplace.
Opportunities Initiative, to determine the degree of impact on the professional lives of people and an examination of the rigorous and demanding programs of the SRCS9 process.
designed to validate formal and non formal programs in 34 countries, including individual reports, which are the responsibility of the European Centre for the Development and Professional Formation (CEDEFOP) of every country 8 http://ec.europa.eu/education/more-information/doc/2010/inventory_en.pdf SRCS - System of Recognition, Validation and Certification of Competencies
The reference year for the academic data is 2009/2010
16
6. Infrastructure networks
With the assistance of European Community Funds during the past several years, Portugal was able to make a strong investment effort to improve transport infrastructure and that has resulted in modern networks of motorways, railways, airports, and maritime ports.
infrastructure in Portugal and one factor contributing to this development was the event of the Lisbon Worlds Fair in 1998. This major project acted as a catalyst for the construction of major public works, such as the second bridge over the Tagus River the Vasco da Gama Bridge and the railway line that was built on the existing 25th of April Bridge, establishing for the first time, a continuous railway link between the northern and southern parts
Although maritime transport continues to be the major mode of transport in Portugals foreign trade, railway transport has assumed a growing importance, especially in connection with European markets.
Jos Manuel
of the country. These infrastructures contributed in a significant way to improve north-south traffic and create new access routes in various parts of the capital, mostly in the eastern part of the city of Lisbon.
In 2010, over 218 million tons of merchandise were transported by road, which was predominantly national traffic (90.4%). In regional terms, the Centre and the North were the regions that accounted for more than 61% of total merchandise transported. The still provisional data, referring to the third quarter of 2011, point to a positive year-on-year change of 12.6% in road transport of merchandise.
6.2 Railways
Vasco da Gama bridge - Tagus River
The biggest challenge in this area is to strengthen the integration of the national railway system with the Iberian
6.1 Roadways
Portugal currently has one of the most developed roadway systems in all of Europe, including Highways (Auto-Estradas, AE), Main Trunk Roads (Itinerrios Principais, IP), Secondary Roads (Itinerrios Complementares, IC); National Roads (Estradas Nacionais, EN); and Regional Roads (Estradas Regionais). In 2010, the national roadway network reached 13,123 km in Continental Portugal divided into the basic network (2,221 km of IP), the secondary roads (6,482 km of IC and EN) and the regional roads (4,420 km). With the inclusion of the Auto-Estradas, they amount to 2,737 km, that is, more than one-fifth of the total roadway network. In the 1990s there was a significant development of roadway 17
and European network, in order to assure the same operating system as the European and trans-European railway transport networks.
Jos Manuel
Gare do Oriente (East station) - Parque das Naes (Park of Nations)
aicep Portugal Global Portugal - Country Profile (April 2012) The existing railway network is 2,843 km, of which 2,794 km with railway traffic carrying both passengers and freight. It serves a population of approximately 8.5 million inhabitants and assures North-South links along the coastal strip of the Portuguese continent as well as transversal links. The railway network density tends to be greater in regions where there are greater concentrations of population. The five principal national ports located on the Continent (Leixes, Aveiro, Lisbon, Setbal, and Sines), moved about 64.6 million tons of merchandise in 2011 (96.7% of the total). Due to the improvement of infrastructures and the efficiency improvements made over the last few years, it is estimated that the national port system will become more competitive which in turn will allow an increase in freight movement in the future years. In 2010, 9.3 million tons of merchandise were transported by rail, also indicating a predominance of national traffic (91.7%) and 153 million passengers. According to regions, the Centre, the Alentejo and Lisbon represented more than 90% of the total merchandise transported by this means. Preliminary data for the third quarter of 2011 indicate a yearon-year decline of 10.8% in merchandise transported by rail. The deep water port of Sines, the national leader when it comes to the quantity of goods moved (25.8 million tons in 2011, or 38.6% of the total), boasts unique natural conditions along the Portuguese coast to handle all types of ships. Endowed with modern terminals it has unequalled characteristics, being on the one hand the principal gateway for the countrys energy supply (petroleum derivatives, coal
6.3 Ports
The geographical position of Portugal, with an extensive Atlantic coastline, offers excellent conditions to promote and develop maritime connections. On the continent there are nine ports: Viana do Castelo and Leixes, in the North Region; Aveiro and Figueira da Foz, in the Centre; Lisbon and Setbal, in the region of Greater Lisbon; Sines, in the Alentejo; Faro and Portimo, in the Algarve. The Autonomous Region of the Azores has eight ports and the Autonomous Region of Madeira has three.
and natural gas), and on the other an important cargo container port with strong growth potential. This port, with its industrial zone and advanced logistics, with more than 2,000 hectares is already a multifaceted logistics platform on an international scale (maritime-port, industrial and logistical), that will count on full integration with the urban national platform of Poceiro and with the cross-border platform of Elvas/Caia. The expansion of the Container Terminal (Terminal XXI) has been completed, increasing infra-structure capacity to one million TEUs (measure used for 20-foot containers) per year, compared with a previous capacity for 250,000 TEU/year.
Cmara Municipal de Sines
6.4 Air transport

Portugals air transport system includes a network of 15 airports, 38 airfields and 11 certified heliports10. On the continent there are three international airports, all situated on the coastal border and an airport in Beja (in the Alentejo interior) that is awaiting certification by INAC the National Civil Aviation Institute (a process that should be concluded in 2012). The project regarding the construction of
Port of Sines - Alentejo
10
Source: INAC Instituto Nacional de Aviao Civil (National Civil Aviation Institute),
January 17, 2011
18
aicep Portugal Global Portugal - Country Profile (April 2012) a new international airport for Lisbon, on the southern edge of the city, in the Alcochete area, has been postponed by the Government due ongoing unfavorable economic conditions. The fact that the autonomous regions are made up of islands explains the presence there of a larger number of airports, as can be seen in the following table. The fact that the autonomous regions are made up of islands explains the presence there of a larger number of airports, as can be seen in the following table. In the last few years, infrastructures relating to the telecommunications sector were substantially improved and modernized, allowing Portugal to stand in a comfortable spot among its European partners. In this area there are three types of systems: a voice system (fixed line telephone and mobile); data services (Internet access) and video service (TV signal), and three types of networks: traditional fixed network, mobile network and TV distribution by satellite, cable and other radio-electric means. The deregulation of fixed and mobile networks and the entry of new telecommunications operators in the Portuguese market increased competition, improved quality and reduced rates charged.
6.5 Technological infrastructures
Main Portuguese airports

Airports Continent Number 4 Location Lisbon, Oporto, Faro and Beja Ponta Delgada, Santa Maria, Horta, Flores, Corvo, Graciosa, Pico, So Jorge, Terceira Funchal and Porto Santo
A. R. Azores
A. R. Madeira
With the arrival of third generation mobile networks, Most international airlines serve the principal airports of the country. TAP Portugal is the Portuguese national air carrier. Internet access in broadband and TV distribution were made available to mobile network clients. Within the EU at the end of 2010, Portugal was the country with the In 2010, the number of passengers passing through national airports increased 8% over the year before, reaching a total of 26 million. In the same year, air freight transport traffic also registered a considerable increase (+11.3%, +14,000 tons) due to the excellent performance of the Lisbon and Porto Airports. The Azores also contributed to the positive trend with traffic of nearly one thousand tons. An analysis of freight unloaded (imports) and uploaded (exports) indicates that export freight increased by much more and was primarily responsible for the good overall performance of air freight transport. According to ANACOM11, the penetration rate for access to broad band Internet at the end of 2010 was 19.5% per 100 inhabitants for fixed network access and 24.1% per 100 inhabitants for access to mobile networks with effective use. In the case of fixed access, the broad band The Francisco S Carneiro Airport, in Oporto, was designated by the Airports Council International (ACI) as the second best European airport in 2010 and the fifth best on a world scale in the category representing airports handling traffic of between two and five million passengers. The John Paul II Airport in Ponta Delgada (Azores) also won the ACI prize for being the European airport that registered the most significant increase in Quality of Service indicators between 2008 and 2009. 19
11 Based on the conclusions contained in the document published by the European Commission Digital Agenda Scoreboard 2011
sixth highest broad band penetration > 10 Mbps in its population (15%) and had the seventh highest penetration of active mobile broad band (effective use in the last three months) among the population (38%). In Portugal at the present time, the satellite networks are for the most part utilized to offer services for TV distribution.
penetration rate was two percentage points above that registered at the end of the previous year. This growth was greater than that recorded in the OECD countres by a difference of 0.3 percentage points.
It can also be estimated that at least 86% of households and 59% of residences in Portugal have at their disposal at
aicep Portugal Global Portugal - Country Profile (April 2012) least access to installed high speed, although geographical distribution is not homogenous and is concentrated in the Lisbon and North regions.
The combinations of services most used by the residential population refer to the exclusive use of STM (15%) and to the four electronic communication services in simultaneous use (14%), in particular, mobile phone, fixed-line phone, fixed broadband and subscription TV (M+F+FBB+TV) although not necessarily purchased as a package. Subscriptions to multiple play options by residential clients have shown a rising trend that in large measure results from higher subscription to triple play packages (F+I+TV). Moreover, it should be noted that 98% of individuals who have Internet access in their homes also have access to STM. have a high consumption of a combination of five services (M+F+MBB+FBB+TV).
In the case of business clients12 there is a trend towards an increase in the number of services, consistent with the growth in the size of the business. Among large businesses, the number of services used is three or greater, with the prevalence of telephone services and access to fixed and mobile Internet (M+F+FBB+MBB).
Use of STM together with MBB tends to be more prevalent in the northern regions of the country (Coastal North and Interior North). Also in the Interior North it is possible to observe a greater propensity to use STF exclusively, as well as acess to two types of telephone service (fixed and mobile). It is important to note that these regional differences are affected by the geographical availability of services, and
Small and medium sized companies (SMEs) also show a high degree of relative penetration of this type of services combination. The most commonly used combination includes fixed and mobile phone services, together with FBB (M+F+FBB), but the double play package comprised of STF and the Internet predominates.
thus do not necessarily reflect consumer preferences among the various geographical areas. On the other hand, given that the great majority of the Portuguese population resides in the Interior North, Greater Lisbon, Coastal North and Coastal Centre regions, the type of consumption in these geographical areas tends to have a greater overall impact. As determined by the European Commission, in 2012 (over the period January to April) all EU member countries saw the introduction of a new technology, namely the digital land signal which replaced the analog land signal for television transmission, applicable to all those not subscribing to pay television.
Microenterprises stand out because they present a totally different profile of combinations with the prevalence of STF, particularly for exclusive use, but also together with STM or FBB, as well as the exclusive use of STM. The population residing in Greater Lisbon and Greater Oporto stand out with regard to the greater intensity of integrated consumption of four services (M+F+FBB+TV), being that the residents of Greater Lisbon also tends to
12 According to ANACOM, for SMEs the analysis was conducted through the
There is an important campaign to bring people closer to the new technologies (including Internet) and an effort by
Consumer Survey of Electronic Communications SME of December 15, 2010. For large companies the analysis was based on the Consumer Survey of Electronic Communications large companies, of December 2009. The services considered were the same as for individual clients.
the public sector to make available various kinds of services electronically, aiming to facilitate engagement by citizens and businesses. 20
aicep Portugal Global Portugal - Country Profile (April 2012) of TAP. These processes are expected to be completed by year-end 2012.
In the maritime-port system, the integration of national ports in the global logistical and transport system was determined to be a priority. This would improve their attractiveness and increase export competitiveness.
As for the railway sector, the privatization of CP Cargo is expected to be completed by the end of 2012 and railway use will be promoted for the transportation of exports. In this situation, investments were planned with the intention of obtaining synergies with port and logistical activities, while having recourse to European joint participation in transEuropean projects as much as possible.
Optic fibber
In the communications sector, the measures that are to be taken focus on improving the operation of the market,
According to the eGov Benchmark 2010 Report, for the second consecutive year Portugal occupies first place in the European rankings for the availability and sophistication of Online Public Services. Within the framework of the Digital Agenda for Europe, by 2015 the European Union intends to achieve its goal of making one out of every two citizens and four out of every five companies use online services for public administration matters.
strengthening competition and promoting efficiencies. In accordance with the execution of the third postal directive, market liberalization policies are planned in the postal sector together with preparations for the definitive privatization of the CTT by the end of 2012. In the electronic communications sector, there will be policy continuity to strengthen competitition, with particular attention to introducing the fourth generation mobile in the market.
6.6 Policies for the future

Within the scope of commitments undertaken in the Memorandum of Understanding, the Government in the State Budget for 2012 defined as top prorities for the transport sector the introduction of structural reforms that are financially viable, and will develop policies promoting the mobility of persons and goods, promote greater cohesion and review of the States role in providing transport services.
In the air transport sector there will be reorganization of the system and the privatization of ANA that will be determined along the lines of the privatization model set in the example 21
7. Resources and Productive Structure

In the past few decades, Portugal, not unlike its European partners, saw its economic development become increasingly based on services. At the present time, this sector accounts
for 62.8% of employment and 74.5% of gross value added (GVA), whereas the agricultural sector only provides 9.9% of employment and contributes merely 2.1% of GVA. Industry, construction, energy, and water represent 27.3% of employment and 23.3% of GVA.
Gross Value Added by Sectors of Economic Activity
Employment by Sectors of Economic Activity
2009
2010 Portugal
2011
2011 EU27
2009
2010 Portugal
2011
2011 EU27
Agriculture, forestry and fishing Industry, construction, energy and water Services
Agriculture, forestry and fishing Industry, construction, energy and water Services
Source: IINE National Accounts by economic secotor at current prices; Eurostat
Source: INE Employment Statistics 2011; Eurostat Calculations based on hours worked
Regional Gross Value Added by Sector of Economic Activity in 2010
Portugal
North
Centre
Lisbon
Alentejo
Algarve
A.R. Azores
A.R. Madeira
Agriculture, grazing, hunting, forestry, fishing
Mining;manufacturing; electricity; gas; water; sanitary, waste management and depollution
Construction
Services
Source: INE Instituto Nacional de Estatstica National Accounts (preliminary data)
22
aicep Portugal Global Portugal - Country Profile (April 2012) As for the regional distribution of GVA, in 2010 (preliminary data) the services sector dominated productive activity in all seven Portuguese regions. The contribution of service activities was particularly high in Madeira, Lisbon and the Algarve. The primary sector continues to lose ground, although it still is important in the Alentejo and the Azores. The agricultural sector has undergone several structural adjustments, namely the increase in the area and number of farms and the increase in mechanization that have contributed to a rise in productivity, even though there continue to be disparities at sectoral and regional levels. On the other hand, agricultural services and secondary activities have increased in relative importance, contributing As for the contribution to GDP of each sector of economic activity, the Economist Intelligence Unit (EIU) calculates that in 2011 services accounted for 74.8% of GDP which represents an increase of almost 20% compared with 2000. Industry, including the energy sector, in the past few years has been declining as a share of GDP (more than one-fourth in the last 10 years). Over the same period, agriculture saw its share decline by less than half. The total farm area corresponds to 50% of national territory and small holdings continue to predominate, with more than two-thirds of all farms consisting of under five hectares. The permanent agricultural plantings, especially vineyards and olive groves, are found primarily in the interior of towards greater professionalism and multifunctionality in domestic agriculture.
Productive Structure - Share of GDP
the country, from North to South, whereas forest areas are located primarily in the area from the Centre to the continental coastline of Portugal. In the Azores, about 95% of agricultural land under cultivation is given over to pastures, meadows, and grazing areas and in Madeira 77% of this land is devoted to permanent crops. Agricultural activity is subject to a significant amount of volatility as a result of elevated exposure to both economic and climatic elements.
Agriculture, forestry and fishing 2000
Industry (including construction & energy) 2009 2010
Services
By conducting an analysis of the structure of agricultural production and the dynamics of development over the period 2000-2010, and in particular 2009-2010, the most
2011a
important component is the production of vegetable products (57.6% versus 31.7% for animal production); the concentration of production in four sectors, three of which belong to the first group (horticulture, fruits and wine) and
Source: EIU Economist Intelligence Unit Viewswire (February 15, 2012) Notes: Based on GDP at factor cost; a) Estimates
7.1 Agriculture, forestry and fishing

Agriculture
Despite the reduced role of this sector in the overall economy during the past few decades, (in 1980 agriculture accounted for 11% of GVA in nominal terms whereas in 2011 it represented only 2.1%, including forestry and fishing), this sector still provides significant employment opportunities in Portugal (9.9% of the total). 23
animal products (milk); the relative loss in importance of cereals due to the sharp drop in production volume; the growing importance of horticulture products, with 20.5% of production in 2010, followed immediately by wine and fruits and the growing dynamics of animal production, in aggregate terms. In vegetable production, it is estimated that the most significant decline is likely to come from vegetables and horticulture products and wine. As for animal production,
aicep Portugal Global Portugal - Country Profile (April 2012) there is likely to be an increase in value terms from cattle raising (+16%) and milk production (+11%).
The 10 countries with the highest growth in organic farming in 2010

0 France Poland Spain Bolivia Turkey 20 40 60 80 100 120 140 160 180
A series of measures have been taken within the context of the National Agricultural Plan which are designed to give the country a more developed agricultural sector that is competitive and produces quality products while also taking into consideration the social importance of this sector.
+33,790.2 +43,587.0 +47,169.0 +49,594.0 +49,795.0 +57,951.3 +71,105.1
Organic farming
In 2010, according to IFOAM13, there were 37 million hectares (ha) devoted to organic farming. Europe was the region that registered the highest increase in organic farming areas in 2010 (+9% over 2009) for a total of 10 million hectares, Asia saw its organic area decrease over the same period. With regard to the types of organic farming, cereals are the dominant crop while coffee is the principal product among permanent crops.
Czech Rep. Portugal Sweden Germany Macedonia
71.105,1
+125,897.8 +154,908.0 +167,929.0
Source: FIBL IFOAM 2012 Survey
Unit: Thousand hectares
In Portugal, since the beginning of the 1990s there has been an exponential increase in organic farming, both in
One third of the worlds total area devoted to organic farming is located in Oceania (33%), followed by Europe (27%) and Latin America (23%). By countries, Australia has the largest concentration of organic farming (12 million ha) followed by Argentina (4.2 million ha) and the USA (1.9 million ha). Currently, Liechtenstein and Austria are the European countries with the largest share of agricultural acreage devoted to organic farmeing (27% and 20%, respectively). Globally there are about 1.6 million organic farmers, and they are primarily concentrated in developing countries.
terms of area of production as well as in the number of farmers who have converted their holdings to this type of farming. Between 2000 and 2010 the area devoted to organic farming rose by 50,000 hectares to 210,981 hectares and the number of producers increased from 763 to 2,464. In terms of types, pastures dominate with 142,000 hectares. They have a significant presence in the Alentejo, followed by olive groves with 17,000 hectares and they are found predominantly in the Alentejo, Trs-osMontes and Beira Interior regions.
For the same year, the consumer market for organic products represented nearly 44.5 billion euros, which showed an increase of approximately 8% compared with the year before. The United States is at the top of the list with consumption of 20.2 billion euros, while in Europe, Germany, France and the United Kingdom accounted for about 60% of organic farm crop consumption in that area. The countries with the highest per capita consumption, over 140 euros, are Denmark and Switzerland.
13 IFOAM International Federation of Organic Agriculture Movements The World
The raising of animals has also shown a significant increase, both in terms of their number as well as in the number of ranchers. In terms of species, sheep, cattle raising and poultry dominate organic animal production (more than 80%). Sheep and cattle are prevalent in the Alentejo and Beira Interior and poultry in Beira Litoral, Ribatejo and Oeste.
The profile of the typical organic farmer14, in general terms, is mostly that of a young person, mostly between the ages
14 Source: Produo Agrcola Biolgica (Orgnica) em Portugal: Evoluo, Paradoxos
of Organic Agriculture, Statistics and Emerging Trends 2011. Data cover 160 countries and refer to the year 2010.
e Desafios (Organic Agricultural Production in Portugal: Development, Paradoxes and Challenges).
24
aicep Portugal Global Portugal - Country Profile (April 2012) of 40 and 49. These persons tend to be university educated or hold professional training in the field, they are mostly recent arrivals to organic farming, they are motivated by a desire to protect the environment (land conservation) and improve health (through healthier eating). More than half of all producers are also involved with activities linked to the sector such as the sale of organic products and/or the factors of production, processing, consumer awareness, promotion and marketing. There is considerable variety in the scale of farms, although medium and large farms predominate. As a general rule, mixed cultivation is practiced, although animal production is the most common. all prepackaged organic products that are produced in all member states. For imported products its use is optional.
Forestry
The importance of forests and the forestry sector in Portugal is unquestionable. This is due to large areas covered by forests; to the relevance of its economic, environmental, social, and cultural importance; to its importance in the manufacturing industry that is based on a renewable, natural resource; to the assurance of the existence of recyclable and reusable products that generate employment and profitability; and even by the large number of agents involved in the production,
On February 8, 2012 changes were approved to the Community Regulation15 that introduced practices for winemaking in accordance with the organic production model (MPB) which will allow European wine producers to bring to market a differentiated product produced in this manner from the vine to the wine. There are about 400 organic grape producers nationally in an area of about 2,600 hectares (fifth largest in Europe) of which 128 produce wine grapes. The expansion of regulations concerning wine production presages a strong expansion of activity, bearing in mind that at present there are only 15 wine producers who are trained to operate using this method of production. The new regulations will go into effect starting with the next wine harvest (August 1, 2012).
transformation and commercialization of forest products.
Forests occupy about 38% of the national territory (3.54 million hectares), they represent different rates of arborization according to the regions of the country and Portugal has the 12th largest forest area in the EU. Portugal also has a significant protected forest area (about 20% of the total), and forms an important part of the Nature 2000 Network (27%).
There are many species that comprise the forests of Continental Portugal: the three most common are the pine (Pinus pinaster), cork (Quercus suber) and the eucalyptus (Eucalyptus spp.) and are also the most important in an economic sense. Together they account for more than 70% of the forest area.
Although it is a relatively recent phenomenon, several national organic products have been awarded national and international prizes. Worth highlighting is the Portuguese olive oil brand Risca Grande a product of the Estate of the same name in Serpa (Alentejo) and Acushia produced in Quinta do Prado, in Vila Flor Trs-os-Montes, that were awarded a prize for quality at the 2012 BIOFACH Fair which is considered the most important European organic farming fair.
As of 1 July 2010, it became obligatory in the EU to use the Euroleaf logo that complies with applicable norms on
15
Reg. (CE) 889/2008, of the European Commission
25
aicep Portugal Global Portugal - Country Profile (April 2012) The pine tree is the one forest species that covers the largest area (mostly in the Centre region and the Coastal North of the country) and is the main sustenance for logging and agglomerates. The cork tree occupies a territory that is equal to about 25% of its natural global distribution. The economic importance of this species is reflected in the fact that Portugal is the worlds foremost manufacturer of cork products, in particular bottle corks. the year before that affected all regions. The national fishing fleet was virtually unchanged both in number of vessels (8,492) and in overall gauging and in power also experienced a slight decline over the same period. The Centre region continues to have the largest number of vessels registered (24% of the total) and the largest gross overall gauging (39% of the total), due to the significant number of offshore fishing vessels registered in that region.
The eucalyptus is also an important element found in the Portuguese countryside. Besides its exceptional properties that are useful for the production of quality wood pulp, its growth cycle gives it importance from an economic standpoint. This fact, together with the development of a dynamic industrial sector, was responsible for a rapid increase of its importance in the last three decades, including the development of the cellulose industry and of the private sector.
During 2010 a total of 166,304 tons of fish were caught, unloaded as fresh or refrigerated in bulk, representing an increase of 15% in volume caught and of 6.7% in corresponding value.
This increase was attributable to a larger catch of marine fish, especially species such as tuna, mackerel and sardines. Mollusks too increased, primarily due to the larger volume of octopuses caught. There was a sharp decline of 24% in the volume of crustaceans due to the reduced number of
In the Azores, more than 64% of the forest area is covered by incense and natural vegetation, with criptomria representing more than 60 % of forest production. In Madeira, 32% of forest space is covered by the laurissilva species and the remaining area is occupied by exotic species (eucalyptus, pine and others).
fishing licenses authorized for Guinea-Bissau.
The Centre and the Algarve remained the main regions for fish unloaded, contributing 27.5% and 20.4%, respectively, to the total value of fish unloaded in domestic harbors. They were followed by the regions of Lisbon with 14.9%, the North and the Azores (14.6% each).
In economic terms, the forest sector (silviculture and the wood and cork industries, furniture, wood pulp, paper and cardboard and graphic arts) accounts for about 5% of national GVA, 14% of GDP and 5% of industrial employment. Although the country enjoys natural conditions favorable to the development of aquaculture, its output has been less than expected, accounting for only a slight share in the total production of the sector. Salt water and brackish output continues on an upward trend.
Fishing
The need to preserve existing resources and maintain the economic viability of the fishing industry is one of the top priorities of this sector. The most important fish raised in aquaculture are sea bass, turbot and clams in marine waters, and trout in sweet water. The Algarve remains the region with the largest share (about 45%) of national aquaculture output. In Portugal there are 45 ports of registry (captaincy and maritime delegations) of which 32 are located on the Continent, 11 in the Autonomous region of the Azores and two in the Autonomous Region of Madeira. In 2010, there were 16,920 fishermen registered, a decline of 2.8% from 26 The adverse economic situation, the reduced wager in diversification, product certification and production process, may have contributed to the disappointing progress experienced by Portugal in this sector.
7.2 Industry
Mining
The development of the mining industry (mining, quarrying and water) shows a sharp alteration experienced by the subsector mines, due to the extraction of concentrates of copper and tin in the mines of Neves-Corvo. This is currently the most important mining project in the country and, given its location in the Alentejo Region, it implies that this region occupies the top position in this subsector when compared with the other regions. The Minas de Neves-Corvo are also responsible for being the major employer in the region of Castro-Verde-Almodvar (more than 800 workers) and contributes in a significant manner to the high level of regional GDP. Also located in this region are the recently reactivated mines of Aljustrel. It is expected that they will have an annual production of 700,000 tons of copper, and other minerals in smaller shares, such as silver, selenium and indium. In terms of relative importance, the Centre Region follows. It is where the second most important mining operation in the country is located the Panasqueira mine, which produces the mineral wolfram.
located, is the major production centre in all of Portugal for ornamental stones. Industrial stones have risen in importance in recent years, reflecting heightened consumption of these raw materials in the civil construction sector and in public works projects. The North and Lisbon Regions are the most significant producers in terms of the value of production.
The mineral and spring waters subsector of Portugal counts on a significant hydro-mineral potential as evidenced by the large number of sources found throughout the country and by the vast hydro-chemical diversity that is attributable to the complex and diversified geology of the country. The North and Centre Regions hold about 74% of hydromineral resources and spring waters as a result of their geological-structural conditions.
Manufacturing Industry
The manufacturing industry is the dominant part of the group of companies that comprise the industrial
16
sector,
accounting for 44.3% of companies, 60.4% of employment and 57.3% of the volume of industrial business.
Ferro-magnesium, tin, titanium, wolfram, copper, uranium, quartz, talcum, and kaolin are the products extracted, among others, from mines in operation. The strong points of this sector include the geographical potential of the Portuguese territory, the quality of raw materials destined for the ceramics industry, the existence of dynamic companies, the ample technological infrastructures, and a sound industrial base for developing international markets.
Since Portugal joined the EU, its manufacturing industry witnessed a considerable expansion both as to level of output and to value added, particularly from the period beginning in 1991. However, even though there was a significant decline of the importance of the industrial sectors contribution to the overall economy, this was not incompatible with changes, although slow, in the specialization of production that resulted in greater value added and the higher input of technology.
In the subsector quarrying, which includes ornamental stones and industrial stones, there has been a considerable pace of growth, due first of all to an increase in competitiveness of the firms operating there, as a result of internal valuation of the products on offer, an improvement in quality standards and an energetic effort to sell into foreign markets. The Alentejo Region, where the most important marble and ornamental granite quarries are 27
While the traditional sectors (textile, clothing, footwear, ceramics, ornamental stones, food and beverages) continue to maintain a significant importance in total manufacturing activity in Portugal, especially in so far as employment and exports are concerned, the industrial base has expanded in those areas with greater technological content.
16 Source: INE - Integrated Business Accounts System, Legal Form: Companies, Year 2010.
aicep Portugal Global Portugal - Country Profile (April 2012) A few examples stand out such as the automotive sector and its components, moulds, electrical and electronic machinery, paper, and plastic materials. However, a few industries are losing their relative importance as to production and employment such as heavy machinery, nonelectrical machinery, transport equipment, and nonindustrial chemicals; these are all sectors where Portugal is a large importer.
Textile and clothing industry

The textile and clothing industry is one of the most traditional in the entire Portuguese industrial structure and has always had a key role in the national economy. Despite the transformation witnessed by this sector (dislocation and factory shutdowns), it still remains one of the most important contributors to Portuguese manufacturing, being responsible for nearly 10% of national exports in 2011 (in the 1990s
From the geographical standpoint, there are strong asymmetries in the dispersion of industrial locations, in particular the sharp contrast between the coastal areas and the interior, and the great concentration around the two metropolitan areas. Following the Greater Lisbon and the Greater Oporto areas, Ave, Tmega, Cavado and Entre Douro, and Vouga, in the North and the Setbal Peninsula in Lisbon are those which contain the largest number of companies operating in the manufacturing industry.
this ratio, on average, had been as high as 30%), 20.5% of employment, 7.5% of industrial output, and 10.4% of GVA in industry17. Here we are dealing with a mature sector which is fragmented and subject to constant changes between supply and demand. Its performance is strongly affected by fluctuations in global economic activity.
The sector is comprised of two industries which are organized in terms of production lines: upstream is the assembly part
Employment in industry is very high in the North, which represents more than 50% of total manufacturing industry, especially the regions of Ave and Greater Oporto. In the Centre, employment represents 24.8% of the total, with Baixo Vouga, Pinhal Litoral and Oeste being dominant. On a national scale, Lisbon accounts for 16.3% of employment and the remaining regions represent relatively modest levels. As for the volume of business, the North, Lisbon and the Centre account for more than 60% of the total manufacturing industry, with Greater Lisbon, Greater Oporto, the Setbal Peninsula, Ave and Baixo Vouga holding prominent positions. The differences among these regions are related to the characterisics and specialization found in the entrepreneurial context. In the Algarve, Centre and Lisbon capital intensive industries prevail while in the North, labor intensive industries still carry a significant weight in the productive structure due in large part to the importance of activities linked to the textile and shoe industries. The Alentejo has mostly manufacturing industries based on the use of natural resources (food and beverages). In a like manner, the food and beverage industry account for differences in Madeira and the Azores. 28
and includes the textile industry component that includes the production of fibers, spinning, weaving, knitting, and finishing (dyeing, printing and finishing); and the downstream, which includes the clothing industry of which styling of articles of clothing and accessories is a part. It is worth noting that not all output from the textile industry is destined for the clothing industry; there is a component producing home textiles, and another part of production used as input by various industries (technical textiles and articles related to coverings).
In the last few years, the activities of companies operating in this sector have become more dynamic and competitive; they have pursued high levels of investment and introduced technological modernization and changed operating strategy by moving ahead and developing a culture attuned to quality and innovation, rapid response, small series, and control over distribution channels. These changes have had a very positive impact on the export performance of the sector which in 2011 registered an overall increase of 23.6% compared with a year earlier, highlighting clothing exports (+13.2%) in particular.
17 Source: INE Integrated Business Accounts System. Data refer to the year 2009.
aicep Portugal Global Portugal - Country Profile (April 2012) From the territorial standpoint, this industry is dispersed throughout the country, although most of the industries are found in the North of Portugal (Oporto, Braga, Guimares and Famalico) and there exists another important focal point in Beira Interior specializing in woolen mills. This sector comprises about 7,00018 companies working in all the sub-sectors of textiles and clothing, that taken together represent about 17% of total production units in the national manufacturing industry and 2% of all companies operating in Portugal. In the list of the 50 best inventions for 2008 published by Time Magazine, in 26th place was a Portuguese bathing suit, the swim suit LZR Racer manufactured by Petratex, that was used by Michael Phelps at the Beijing Olympic This sector represents today a more capital intensive profile, offers brand and design names, and is expanding more and more into new and demanding markets as, for example, Spain, the United States, and even the United Arab Emirates and Saudi Arabia. According to the Franchise Information Institute, the readyto-wear segment of the industry represents almost 20% of all Portuguese brands operating abroad in franchising, highlighting Petit Patapon (33 stores), Origem (15) and Metro Kids (14) in about 35 countries, in addition to which are fashion accessories boutiques such as Parfois (81) stores and Lune Bleu (68). Besides these, there are other examples of brand names that have become well-known in international markets: Lanidor, Dielmar, Diniz & Cruz, Impetus, Papo dAnjo, Zippy, Onara, Do Homem, Vicri, and also how Portuguese companies really stand out for their textile innovation as is the case with Domingos Almeida, producers of sheets that automatically regulate temperature upon body contact and Coltec which makes specialized laminations of membranes that are capable of conferring unique characteristics to fabrics, making them impermeable, breathable and isothermal. We also have intelligent fabrics that are fireproof, antibacteria, or have therapeutic and moisturizing properties; cloth made up of a mixture of cotton, bamboo or recycled polyester and cloth made of 100% wool used for suits that are washable and known as the Shower Clean Suit made by Paulo de Oliveira, an innovation obtained through
18 Excluding businessmen operating in an individual capacity.
special finishing that include anti-wrinkle, non-shrink, permanent-crease, perspiration-resistant, and quick-dry features. The exterior and interior clothing worn by the astronauts of the European Space Agency (ESA) and International Space are of Portuguese origin.
Games. Indeed, 94% of the swimming competitions at the Games were won by athletes using this type of swim suit.
Footwear industry
The Portuguese footwear industry is currently experiencing a consolidation phase in preparation for facing new challenges. After the adjustment to new realities regarding competition that involved the displacement of a few large production units with foreign capital, the footwear industry finds itself in rapid development.
In the last few years, the industry downsized, reformulated its business model moving production towards segments with greater value added and placed its wager on foreign markets, seeking to establish itself on an international scale as a producer of high quality shoes with recognizable brands, affirming a pro-active business attitude. The resiliency shown by this sector in light of the current severe economic crisis reflects their correct choice of options.
Comprised mainly of small and medium sized enterprises, this industry employs about 33,000 persons according to the Sectors association APICCAPS, its production is around 62 million pairs per year (20th producer in the world as per volume) and survives primarily on foreign demand (about 90% of production is destined for export), and even though it faces powerful competitors that benefit from very favorable production costs, it continues to produce a trade surplus and contributes in a positive manner to the countrys trade balance. 29
aicep Portugal Global Portugal - Country Profile (April 2012) Within the manufacturing industry19 this sector represents about 3.2% of all businesses, 5.6% of employed personnel, 2.4% of the volume of business, and 3.1% of GVA. Moreover, this sector presents a strong specialization in leather footwear: this segment accounts for 88.2% of companies, 92.7% of employment, 89.8% of GVA and 88.3% of the volume of business of the leather and leather goods industry. To cite just one example, Mclaren chose Portugal to develop and manufacture a technically innovative collection. The Mclaren Shoes Team project consists of the production of In 2011, exports from the footwear sector amounted to 1,551 million euros, accounted for 3.7% of total Portuguese exports and registered a 15.5% increase from the year before. Moreover, Portuguese footwear is gaining new markets and is already exporting to over 132 countries, which allows it to claim that there are Portuguese Shoes in every continent. In 2010, Portugal was the 11th largest shoe exporter in the world20. a sports shoe line that will be sold in more than 20 countries. Harlot Shoes, Mackjames, Prophecy, Softwaves (GoAir, Go Green), Lus Onofre, Paulo Brando, Miguel Vieira, or Carlos Santos, with the last two producing for the luxury segment, continue to grow and become better known in international markets.
The wine industry

Portugal possesses the oldest demarcation region in the world the Douro region and secular methods of producing wines despite the modern technology that predominates in Portuguese wine cellars. In order to adapt production to market demand, in the last few years, a campaign was started to reconvert and restructure vineyards,
Also according to APICCAPS, womens shoes represent nearly half of national leather footwear output and 45% of total shoe production. It is more important in terms of value, due to the higher average shoe price which amounts to more than 25 euros per pair. Mens shoes represent about half of production and have a slightly lower average price.Footwear produced with input of other materials (textiles and plastics) corresponds to one-fifth of national output and accounts for only 13% in terms of value, given that the average price is lower (roughly between five and ten euros per pair). Leather footwear, with almost 900 exporting companies represented 85% of Portguese footwear exports in 2011 and expanded 16% compared with the previous year. In this segment, Portugal maintains a prominent position on a European and global level, ranking fifth at the European level and nineth in the world with a share of 3.2%21. Portuguese brands such as Fly London, Camport, Eject (the A..J.Sampaio brand which is the first footwear company certified in innovation management), Exceed, Hard Hearted
19 20 21 Source: INE - Integrated Buiness Accounts System Year 2009 Source: ITC Source: ITC
with the assistance of European Community funds. Currently there are 11 wine producing regions that exist in Portugal each with a typical culture that is apparent in every wine produced. Portugals entry into the European Union forced certain changes in the designation of wines produced. There are currently various designations and concepts given to wines that are produced that can be consulted at the following web address: http://www.ivv.min-agricultura.pt/np4/30.
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aicep Portugal Global Portugal - Country Profile (April 2012) In the 2010/201122 vintage, Portugal produced 7.1 million hectoliters of wine, showing an increase of more than 21% compared with the previous vintage. The regional structure of wine production in terms of volume was as follows: the regions of Tejo, Beiras and Lisbon produced 76% of total table wines (without DOP/IGP), while Lisbon, the Setbal Peninsula and the Alentejo accounted for 75% of regional wines (IGP). Concerning DOP wines, the situation was as follows: the regions of Minho, Douro (the most typical region given the presence of Port Wine, with 40% of all DOP wine), Beiras and the Alentejo accounted for more than 90% of production in this category. In Madeira, DOP wine accounted for 89.6% of total production while in the Azores the most important product was table wine which represented almost 76.5% of total production. Proof of this can be found in the many prizes that have been awarded to Portuguese wines by prestigious publications and international magazines linked to the wine industry whenever wine tastings take place abroad. In the competition Decanter World Wine Awards, the most important internationally, several Portuguese wines were awarded international trophies: a Muscatel from Setbal, a wine from Madeira and a wine from the Alentejo. Recently, in the competition Berliner Wein Trophy 2012, 81 Portuguese wines won awards including one which received the grand gold medal prize. There were 48 gold and 32 In its totality, the wine industry represents 1.5% of companies, 1.2% of employment, 1.8% of volume of sales and 1.9% of GVA in the manufacturing industry. silver medals won. In the competition MundusVini Biofach 2012 three Portuguese wines won awards in the organic production category. In the Vinalies Internationales 2012 edition, sponsored by the Union des Oenologues de France, According to IVV (The Vine and Wine Institute), wine exports represented 1.6% of total Portuguese sales abroad, 66% of the product category beverages, spirits and vinegars and expanded 7% compared with the year before. Still wines (DOP+IGP+Table) were the primary contributor to this growth (+10% in value and +22% in volume), since there was a decline experienced by the liqueur wines category (-3.3% in value and -3.4% in volume), and represent 51% of total wine exports, thus surpassing the entire amount generated by liqueur wines. wines from the Tejo area won an impressive 10 silver medals. new technologies, have well-prepared experts, and create new brands, all of which raised the profile of the quality of Portuguese wines, placing them in an outstanding position at an international level.
Wood and cork industries

Forest products represent about 5.3% of national GVA, 14% of industrial GDP, 5% of industrial employment and about 11% of Portuguese exports. With few exceptions, the sub-sectors of wood, furniture and cork are strongly dominated by small and medium sized industries. According to AIMMP23, the wood sector, comprising four areas: wood cutting, wood paneling, carpentry and wood furniture, consists of about 5,000 companies which employ more than 54,000 workers. These companies generate a volume of business on the order of 2.5 billion euros of which 52% represents exports, accounts for 2.2% of national GVA and 9.4% of GVA in the manufacturing industry.
Good wines have always been produced in Portugal, as is the case with Barca Velha, Porta de Cavaleiros and Caves So Joo, Tinto Velho of Rosado Fernandes, Aliana, Montes Claros, Quinta das Cerejeiras, Collares, Quinta da Aguieira, Buaco, Periquita, Pra Manca, Quinta da Bacalha and others, but in the last few years the quality became broader with a range that is more varied by wines produced from national and international stocks. Therefore, it was fundamental to apply new wine making processes, adopt
22 Source: IVV Instituto da Vinha e do Vinho (The Vine and Wine Institute 20/02/2012)
As for regional distribution, wood cutting and companies specializing in producing wood panels are concentrated in the North and the Centre (90% of the total), while
23 AIMMP Associao da Indstria da Madeira e Mobilirio de Portugal (Wood and
Furniture Industrial Association of Portugal)
31
aicep Portugal Global Portugal - Country Profile (April 2012) increase of 7% in 2011 and of 15.5% compared with 2009) and about 17.5% of total exports of forestry products. Bottle corks alone account for more than 70% of the export total. The Alentejo accounts for 72% of all cork produced in Portugal. The manufacture of cork products is spread over 12 districts with Aveiro and Setbal providing most of the employment (58% and 28%, respectively).
The perception of cork as a raw material has changed in the last few years, as a result of its potential for sustainability and for its use in technical applications. It is a versatile, renewable and recyclable product; a good thermal and acoustical insulator; it resists waste and has hypoallergenic qualities that make it very attractive for use in the construction sector since cork can be applied at carpentry firms are scattered throughout the territory of Mainland Portugal. the start of a project, in a remodeling phase as an integral part of structures or at the end of a project as a form of covering. Led by Portuguese and foreign economic groups that are of considerable size and scope on a European level, agglomerates and plywood, offer quality at a competitive price, with specialization in fiber-based agglomerates, where Portugal accounts for more than 30% of installed capacity on the Iberian Peninsula. Production in the wood furniture industry is dominated About 32% of the worlds cork forests are found in Portugal, followed by Spain (22%), the Maghreb (37%) with France and Italy accounting for the remaining 8%. With a forested area of cork trees of 730,000 hectares (23% of national forests), Portugal is proceeding with a reforestation policy at the rate of 10,000 hectares per year. by small family-run firms that are focused on the national market, although there are now some companies that have grown in size and produce mainly for export. In the past few years, its great adaptability to market demands and ample flexibility in the production process have allowed this sector to develop a significant capacity to present new products and styles. It is currently estimated24 that there In the cork industry, Portugal is the world leader in the production and transformation of cork, accounting for about 53% of world production, which is mostly (90% of output) destined for foreign markets. are about 2,000 companies which generate a volume of business of approximately 1.3 billion euros. The Pavilion of Portugal at the Shanghai Expo, Gauds Holy Family in Barcelona, the Jimmy Woo Club in Amsterdam, the Guggenheim Museum in Abu Dhabi and the Nezu Museum in Japan are examples of emblematic works that included the application of cork.
The North region is the one that accounts for the largest number of companies in this subsector (65% of the total). The segment of the furniture industry that specializes in reproductions or in high style enjoys a good reputation abroad, although its share in total exports is still rather low.
24 Source: AIMMP
This sector is of particular importance to the national economy, representing 1.2% of GVA and 1.3% of employment, 1.6% of the volume of business in the manufacturing industry, 2% of all national exports (an 32
The paper and wood pulp industry

Consolidated into a reduced number of companies, this industry is characterized by a high level of technology, strong productivity, and quality that is internationally recognized. The exceptional planting conditions affecting eucalyptus trees have resulted in Portugals pre-eminent position as a producer of eucalyptus pulp in the EU. In addition, there is in Portugal a well-established industrial network in the subsectors of paper, agglomerates and furniture, with the possibility of exploring new opportunities to meet industrial needs and environmental adjustments such as is the case with forest biomass.
Chemical industry
This industry is sufficiently diversified and specialized and groups together a series of products that are rather heterogeneous, many of which not directly visible, but used in the manufacture of many goods that are consumed every day, including polyethylenes, fertilizers, synthetic resins, plastic materials and artificial fibers. These materials constitute the point of departure for a series of chemical reactions, syntheses and transformations that give rise to new products that will be used by many of the major industries operating in different sectors of activity.
Organic and inorganic chemical products together, The paper and wood pulp sector plays a very important role in the national economy, accounting for25 3.9% of GVA, 1.7% of employment and 3.9% of turnover in the manufacturing industry. It is responsible for about 5% of all Portuguese exports, it is a major net contributor to Portuguese economic growth, has been showing a trade surplus since 2008, and in 2011 its export/import ratio reached 145%. According to data from Eurostat, Portugal is the sixth largest European exporter of wood pulp and ranks 13th in the production of paper and cardboard. comprising fertilizers, nitrogenous compounds, industrial gases, dyes and colorings, plastic materials and unprocessed rubber, represent 1.3% of GVA, 0.6% of employment and generates 2.2% of turnover in the national manufacturing industry. Inorganic and organic chemical products (NC 28 and 29) accounted for nearly 2% of all Portuguese exports in 2011 and had an increase of 17% and 54%, respectively, compared with the previous year.
Pharmaceutical and biotech industry

The pharmaceutical industry is one of the sectors that generates significant employment for qualified workers,
Worthy of note is the role played by Portucel Soporcel in wood pulp and paper where it is among the largest producers of fine uncoated papers within Europe, UWFUncoated Woodfree Paper, and is the largest European producer and one of the largest global producers of a special pulp named BEKP-Bleached Eucalyptus Kraft Pulp. This company also plays a key role in the energy industry where it enjoys the status of being the largest producer in Portugal of biomass energy accounting for more than half of electrical energy generated from forest biomass.
contributes significantly to research and scientific knowledge, being one of the industries that invests the most in innovation, and in the past few years has contributed in a major way to Portugals economic development (2.3% of GVA and 0.6% of employment in manufacturing and represents 1.3% of total exports).
In 2011, exports of medicines amounted to 550 million euros and, between 2006 and 2011, the average annual growth rate of exports was 11%. The wager on internationalization projects by companies and associations
The Navigator paper produced by this group is one of the most widely sold premium office paper products worldwide and the Navigator Kids and Navigator EcoLogical have won awards for several consecutive years.
25 2009 Source: INE Integrated Buiness Accounts System; Legal Form: Companies Year
of the industry are the principal factor accounting for the growth of Portuguese medical exports. Portuguese pharmaceuticals have been exported mainly to Germany, the United Kingdom and Angola. Products relating to cardiovascular and nervous systems have contributed the most to export growth. Generic products already represent 33
aicep Portugal Global Portugal - Country Profile (April 2012) between 20% and 30% of the export total, whereas five/ six years ago they accounted for a share of only 10%. Even the British Government awarded a silver medal in the field of Science, Engineering and Technology for Britain (SET) to a Portuguese scientist associated with Among the Portuguese companies that most engage in R&D in Portugal there is Bial, Bluepharma, Medinfar, Tecnimede, Hovione and also Atral Cipan. Bial (responsible for the launch of the first pharmaceutical product researched and developed in Portugal, named Zebinix26) strengthened its global wager in allergy immunotherapy with its new Center of Excellence located in Bilbao (Spain), Hovione was the company that received the most patents in 2010 (eight) according to the 2010 issue of the Statistical Report on Patents published by the National Institute of Industrial Property. Biotecnol, Alfama (which won the prize of best European startup in 2005), Crioestaminal, Medinfar/ Cytothera, Biocant, or IBET are engaged in finding solutions to conquer incurable diseases or to preserve stem cells for regenerative medicine. Bioalvo, a company that works to develop new medicines applied to neurosciences, is the owner of an international patent on technology platform for the discovery of drugs for neurological disorders such as Alzheimers or Parkinsons (Global Platform Screening for Drug Discovery, GPS D2). According to the magazine Scientist, the Gulbenkian Science Institute (IGC) was classified as one of the 10 best institutes for post-doctoral researchers to work, scoring in eighth place. The Best Places to Work for Postdocs Survey rankings are determined by the post-doctoral individuals who actually work in research teams at these The pharmaceutical companies are largely concentrated in the region of Lisbon. More than half is devoted to the manufacture of medicinal products, conditioned by price of medicines regulations. Other activities are shared between non-specific pharmaceutical products and manufacture of biological products. institutes around the globe. In addition, at the 2012 International Bioinformatics Conference, a biomedical engineering doctor at the University of Coimbra received the Best Student Paper Award for research conducted for a new diagnostic method instrumental for certain diseases, particularly diabetes, in collaboration with international researchers and with the support of the Foundation for Science and Technology. Biocant and the Center for Neurosciences and Cellular Biology, for the development of a nanomaterial capable of monitoring stem cells for magnetic image resonance and manipulating them in situ in the sense of enabling their therapeutic effects in ischemic tissues.
Electrical and electronic industry27

This industry is centered mostly around the regions of Lisbon, Setbal, Braga, and Oporto, with the largest companies being located in the North. It produces above all industrial machinery, equipment and appliances, cabling sets, lines and cables, telecommunications equipment, information, and professional electronic equipment, and electronic components. This industry occupies a dominant position within the Portuguese economy, accounting for 6% of GVA and 4.1% of employment in the manufacturing industry. The nearly 1,000 companies that constitute the sector generate a turnover of almost five billion euros, which accounts for 7.5% of manufacturing total. Exports
27 Includes the CAE (Rev.3): 26 Manufacture of systems equipment,
There are already many Portuguese researchers who have been awarded scientific research grants in various areas by renowned international organizations such as the recent grant from the European Research Council to a scientist working in the Gulbenkian Institute of Science (IGC), who will receive 2.2 million euros to determine what factors hinder the destruction of organs and are the cause of death in cases of such diseases as severe sepsis or malaria.
26 Zebinix a new calcium channel blocker, capable of lowering the frequency of
communications equipment and electrical and optic products; 27 Manufacture of electrical equipment.
partial epileptic seizures, when used in combination with other anti-epileptic medications.
34
aicep Portugal Global Portugal - Country Profile (April 2012) in 2011 exceeded 3.6 billion euros and represented an increase of 10% compared with the previous year.
It is a sector that has an ever expanding role in the development of the automotive industry.
In the micro-electronic field, a number of significant scientific advances have taken place in Portugal. Among them there is the development of transparent integrated circuits that utilize paper as a support for transistors and for memory, instead of the traditional silicon, which has several applications including: screens, stickers for intelligent packages, identification chips, or medical applications in the area of biosensors. This is called green electronics since the transistors can be recycled, turning back to the cellulose cycle. Another example is the discovery of a new conducting material, called ionic gel, that results from the combination of ionic liquid with biopolymers, which is the gelatin, that will allow the development of much cheaper and environmentally friendly batteries and combustible cells. important poles in the Portuguese auto industry, given the location of Auto-Europa and a wide range of suppliers of components. Other automotive industrial poles can be found around Cacia, where Renault has a plant, and Ovar where the Salvador Caetano Group is located. Both are in the Aveiro district. In addition, PSA Peugeot Citroen operates in Mangualde (district of Viseu).
Automobile industry
The automotive industry has ramifications in all sectors of manufacturing, from metalworking to rubber, from electronics to textile, from glass to plastics. In Portugal, the development of the automotive industry in recent decades, has been strongly conditioned by the decisions related to industrial policy and the role of foreign investment, especially concerning the installation of local assembly line production that became a focal point for the development of auto components.
Portugal presents several strong points in this sector: existence of focal points of cooperation among companies, universities and centers of research and development; logistical solutions for markets outside the EU, particularly the North American market; a very adaptable labor force; the existence of certified companies; the existence of focal points and company clusters; and companies involved in international supply networks.
This industry contributes 1.1% to national GVA and 5.6% to GVA relating to manufacturing and is responsible for about 13% of all exports. In 2011, about 192,000 vehicles were produced (light passenger, light commercial and heavy vehicles), representing an increase of 21% over the previous year. This sector has well above industry average investment in R&D and provides employment to 30,000 workers in Portugal (nearly 4.4% of employment in manufacturing). The Palmela region is one of the most 35 This industry today depends on a components sector that relies on a group of firms that is internationally competitive and well-placed in the development of new factors of competitiveness, especially in the areas of engineering, research and technological development. According to AFIA, the Portuguese Association of Automotive Suppliers, the volume of sales of the 180 companies that comprise this subsector in 2011 contributed about 4.3% of GDP,
aicep Portugal Global Portugal - Country Profile (April 2012) 5.6% of manufacturing employment and 9.7% of the countrys exports of goods and services, and generated a turnover on the order of about 7.4 billion euros. household appliances, etc.) choose domestic firms for the production of their moulds, which are subsequently destined for use in the production of the best products of well-known international brands. The regional distribution of the components firms is not homogenous; it is concentrated in the coastal zone between the Setbal Peninsula and Viana do Castelo. The areas of Oporto/Braga, Aveiro and Lisbon/Setbal comprise three major industrial poles at a national level to which should be added the area near Leiria, where the production of injection moulds and plastic are a significant activity. An unbreakable glass or a CD that allows six simultaneous Some examples include Samsonite, Nokia, Mercedes, and Porsche, which depend on the talent and engineering of Portuguese mould companies. The automobile industry is one of the main industries served by the moulds sector (72%), followed by household appliances and packaging (5%).
The moulds industry

The Portuguese moulds industry has grown over time and gained a global importance. Growth has been driven by foreign demand, by the expertise and experience of Portuguese mould producers, by the level of product quality, delivery times, competitive prices, technological capability, and technical assistance, so that these companies have become major global suppliers of precision moulds, primarily for the plastics industry (eighth global supplier).
blood analyses are just two examples, one in the food sector and another in the pharmaceutical industry, of the very latest in applied technology coming from the moulds industry.
Competititive and Technology Poles and other Clusters

The important role performed by the industrial sector in the Portuguese economy (on a European scale it is estimated to account for 75% of GNP and 70% of employment) and its valuable contribution towards improving the economys competitiveness, led to the realization of the necessity of defining a strategic network with the purpose of strengthening the Portuguese industrial sector on an international scale so that it is modern, innovative and with a strong R&D component.
According to CEFAMOL28, the moulds sector consisted of 532 companies, mostly of small and medium size, dedicated to the production of specialized moulds and specialized tools, employed about 8,000 workers, and are situated in two different geographical regions around Marinha Grande and in Oliveira de Azemis. The production of moulds accounts for almost 1% of companies, 1.1% of employment, 0.8% of turnover and 1.4% of GVA in the manufacturing industry. In 2011, this sector exported about 364 million euros (almost 1% of the national total), implying an increase of 15% compared with a year earlier.
These networks of participants, gathered together in Competitive and Technology Poles29 and in Other Clusters have as their objective to leverage in a sustainable way national and entrepreneurial competitiveness, promoting and enabling collective and common projects in cooperation among the various intermediaries (companies, universities, research and development units, industry
Plastics moulds account for nearly all of production, which is largely destined for exports (representing almost 80% of the total exported by the sector in 2011). More and more, large multinationals (in the automotive industry, packaging, electronics and telecommunications,
28 National Association of the Portuguese Moulds Industry
associations, etc.).
29 There are 11 already recognized Competitive Poles: Engineering & Tooling; Mobility
Industries; Refining Industries: Petrochemical and Industrial Chemicals; Production Technologies PRODUTECH; Energy; Forestry-Based Industries; Agro-Industries; Tourism; TICE; Fashion; Health; and 8 Clusters: Furniture; Sustainable Habitat; Natural Stone; Agro-Industrial of the Centre; Agro-Industrial of Ribatejo; Wines of the Douro Demarcated Region; Economy of the Sea; Creative Industries of the North Region. For more information please consult (http://www.pofc.qren.pt/PresentationLayer/conteudo. aspx?menuid=749)
36
7.3 Construction
Conditioned by the global economic situation, the construction sector worldwide continues to experience adverse effects. In all of the 19 European countries that are members of Euroconstruct, estimates of sectoral output point to a decline of 0.6% in 2011 and another fall of 0.3% in 2012, with prospects of a return to positive territory in 2013 (+1.8%).
The most affected segment was residential construction which suffered a 15% decline in production the same year. The non-residential sector registered a 3.5% decline due to the contraction of private demand which was not offset by the public sector.
The outlook for 2012 continues to be unfavorable, not only because of the retrenchment in private investment but also because of budgetary restrictions that impose ceilings on public expenditure and public investment which negatively affect the domestic construction market. In an attempt to overcome the crisis in the domestic market provoked by the crisis, the European Powers of Construction 2010, a study authored by the consulting firm Deloitte and published in June 2011, points out that there is a trend towards greater internationalization and diversification of business activity among the various construction groups. Portuguese construction companies continue to rely more and more on foreign markets. The international activity of Portuguese construction companies grew at an average annual rate of 28% in the last 10 years and it can be claimed that more than 30% of the volume of business of the largest companies comes from activities that take place outside of Portugal. A significant number of bids have been
Characterized as being a cyclical activity, determined by and dependent on economic and investment conditions, the construction sector in Portugal has also been severely impacted in the past few years. In 201030, this sector represented 56.9% of national GFCF, (indicating a decline of 5.8% compared with 2009), and 5.3% of GVA (down 3.9%). The drop in production amounted to 4.1%, somewhat lower than the decline seen in 2009 (-9%) and employment fell 4.6%. At the end of that year, there were 23,859 companies that were licensed with the Alvar (the registry for construction) and 38,931 with registry title. The largest number of companies in this sector are located in the North and Centre regions.
30 Report of the Construction and Real Estate Institute The Construction Sector in
Portugal in 2010, September 2011
won in consortium with local partners or even going it alone through the creation of local enterprises. In the Deloitte study, which ranks the 50 largest European construction groups (based on turnover), the three largest Portuguese companies in the sector Mota Engil (30th position), Teixeira Duarte (37th) and Soares da Costa (47th) are among the top 50 companies. Together they invoiced 4.3 billion euros in 2010, compared with 3.8 billion euros in 2008.
Given expectations for Portugals economic outlook, no significant improvement in activity is forecast for the construction sector in the near term. However, there exists a perception on the part of the principal players in the sector that there is a need for more concentration and of an even bigger wager in diversifying areas of activity especially in energy, the environment and tourism. 37
7.4 Services
The services sector, as previously mentioned, has been gaining greater importance in the Portuguese economy during the last few decades, being currently responsible for about two-thirds of economic activity and 63% of all employment in Portugal, compared with 72.9% and 69.5% in the EU27, respectively. Besides their economic pre-eminence, services are one of the areas that registered some of the greatest technological advances, with many examples in telecommunications truly standing out such as the fixed and mobile networks, Internet access, broadband, etc.; the energy sector; financial sector services; and the information technology sector.
but also contributed towards placing Portugal among the countries that wagered most in the development of E-Government.
The Simplex Program, which has been inexistence for six years, continues to bring together, consolidate and develop important measures taken in recent years and continues to give particular attention to the simplification of procedures in the health sector, as well as a reduction in related costs for small and medium sized industries. Measures designed to reduce bureaucracy for the ordinary citizen and for companies continue to be implemented such as, for example, the creation of a Via Verde affecting projects of small and medium sized companies whose financing has been approved by the QREN - Quadro de Referncia Estratgico Nacional (National Strategic Framework). On March 29, 2011, the first Simplex dedicated to a specific theme, namely exports, was presented. It contains 12 measures. Among them one can find initiatives that facilitate fiscal questions relating to exports, provide more information to companies so that they can organize their export activities with greater assurance.
Public services
At the level of public services, the improvement in quality, effort, accessibility, and availability of online public services are examples worth highlighting in that they greatly facilitated the lives of citizens, favored business activity, improved the availability and quality of services rendered, thus increasing the transparency of the administration and the development of industry and national services.
These notable efforts placed Portugal in a leading position in the European Ranking of Online Public Services in the category of Complete Online Availability on a par with Austria, Malta, Italy and Sweden and the Sophistication of Online Availability on a par with Malta, Ireland and Austria31. Also available is the Balco do Empreendedor (BdE) the Online Entrepreneur the sole national electronic platform that allows online access to the formalities required to perform economic activities, starting with the Portal da Empresa the Company Portal Service. The BdE stands out The advances registered in the creation of an environment favorable to business as, for example, the On the Spot Firm (Empresa na Hora) were recognized for good practice by the European Commission and named top reformer by the World Bank. Other examples are Marca na Hora to speed up the issuance of patents, and Casa Pronta to facilitate buying and selling of residential property. They were decisive factors not only in inducing the best technology companies in the world to invest in Portugal such as Microsoft, Cisco, and Nokia-Siemens,
31 E-Gov-Benchmark Study 2010 developed by CAPGEMINI for the European
for being the only access point needed to get information in a structured, simple and uniform manner concerning 462 services necessary for carrying out activities in more than 450 economic activities, of which 130 can be totally completed online. With the BdE having become operational any citizen, a national or someone from a Member State of the European Union (EU), who intends to start a business in Portugal, can find out what formalities are required to start up a business in Portugal, including fiscal and social obligations, up to and including the location and functioning of the intended activity. As a result, the key objectives set forth in the Memorandum of Understanding 38
Commission in December 2010.
aicep Portugal Global Portugal - Country Profile (April 2012) signed between Portugal and the European Union, the International Monetary Fund and the European Central Bank concerning this matter were therefore accomplished.
Energy
The promotion of renewable energy sources and energy efficiency aims to reduce carbon emissions and also reduce Portugals energy dependence on foreign sources, on combustible fossil fuels, on exposure to ever higher and volatile prices for petroleum and natural gas in international markets, and improve certain environmental conditions. All this will not only will lead to profound changes in this sector but will also increase the competitiveness of the country. Portugal is at the forefront by being the fifth most ambitious country in the European Union in what relates to total saving in energy consumption by 2020 and, as regards to electricity usage, Portugal rises to third position. warming which calls for 60% of electricity to be produced from renewable sources.
The increased capacity to produce domestic energy with recourse to developing renewable energies and the improvement in energy efficiency and reduction of CO2 already has produced some visible results among which the largest photovoltaic plant in the world in an urban setting in Lisbon (supplier market) stands out with 6MW of installed power and the second largest wind farm32 in Europe.
One of the strongest ideas stemming from this Strategy is the adoption of new models of mobility that are environmentally sustainable and capable of exploring the relationship with the national electrical network in order to develop a loading network that will allow supplying of electrical vehicles. The mass production of electric vehicles
According to the report of the Directorate General of Energy and Geology presented in November 2011, Portugal had an installed capacity of 10,309MW for the production of renewable energy sources (RES) as of that date, and in 2010 the portion of RES in electricity energy consumption was 50% of the total as a result of the impact of Directive 2001/77/CE. The National Energy Strategy Plan, which defines energy policies until 2020, has as its goal the reduction of Portugals energy dependence abroad by 74% (the equivalent of 31% of final consumer energy demand) thus allowing Portugal to comply with agreements established within the European policy framework to combat global
32 Alto Minho Wind farm with 120 turbines distributed by 5 sub-farms with 240MW
could be a reality starting from 2011, coinciding with the introduction of the first NISSAN models on the market. Portugal was a pioneer in launching the National Electric Mobility Network (Rede Nacional de Mobilidade Elctrica), an integrated mobility model based on renewable energy.
The need for new models of generating more reliable and better quality electricity supply led to the creation of InovGrid, an innovative project that gives the electricity grid information and intelligent equipment capable to automate energy management, thus improving service quality costs come down, and energy efficiency and environmental sustainability go up. vora is the pilot city for this project (30,000 Energy Box meters have been installed). The goal is
installed capacity, production of 600 GWh/year, sufficient to supply 160, 000 households and avoid the emission of 500,000 tons of CO2/year.
to achieve the installation of these intelligent meters in half of all Portuguese residences by 2020. 39
Information and Communications Technologies ( ICT)

According to a study by IDC33 (International Data Corporation) The 10 Principal Trends in Information and Communications Technology in the Iberian Market in 2011, the market value of ICT in Portugal had reached 3,220.7 million euros in 2010. This represented a decline of 2.7% compared with 2009, when the market had already retrenched 10.7%. A forecast contained in the study indicated that the trend in Portugal will remain negative, and that there may be a decline of 0.6% in overall value terms during 2011. However, there is likely to be some market recovery in 2012 when the forecast calls for an increase of 3.4%. The ICT market in Portugal has been adversely impacted by financial volatility and by the difficult economic situation which have discouraged corporate investment and caused consumers to retrench.
computation, interactive media, augmented reality and biometric sensors, through its engagement with Audience Entertainment was chosen by Disney to promote the companys cruises in cinema theatres throughout the United States with a collective interactive game in which spectators are invited to participate, with Donald Duck used as a toboggan; Novabase which is a leader in business solutions based on information technology; Active Space Technologies, Actividades Aeroespaciais which offers integrated solutions of proven technology and peak technology for the aerospace, automotive, defense and energy sectors, and which works, among others, with the European Space Agency and Galileo Avionica; HPS Portugal which is developing technology (material for thermal protection) for those vehicles that are expected to be used in the next space mission by the European Space Agency to the red planet in 2020; WeDo Technologies which is
The companies in the technology and information field fulfill a fundamental role in the modernization of Portugal and of many other businesses in various sectors of the economy. Some of them have become active on both the national level and on the international scene. There is the recent example of Critical Health Software which, together with RetmarkerAMD, was honored in London with the European IT Excellence Award. The most prestigious organizations in the sector from 26 European countries had competed for this prize.
a leader in revenue and business assurance; Alert Life Sciences Computing which is a leader in the creation of paperless clinical environments with the ALERT software; Edigma which created the technology Displax Multitouch Technology which transforms any surface into a multi-touch screen; Fibersensing which is a global leader in the development, production and marketing of advanced monitoring systems based on Bragg sensors, one of the most reliable means of monitoring the integrity of such complex structures as bridges, dams, tunnels, railways, aircraft fuel tanks, high tension cables, petroleum wells,
We can even call attention to the following examples: Critical Software is a key global reference in the software for critical information systems, the only non-American company that develops projects for the United States Air Force; SISCOG continues to gain the most demanding clients in the world; Number Five which holds an important share of the global market for auto-identification; Altitude Software is the technological leader for call centers and CRM; YDreams develops products and services that use pioneering technology in such areas as ubiquitous
or high power generators; Bio-Devices which produces the t-shirt Vital Jacket which monitors heartbeats, a technology developed at the University of Aveiro; Inosat which produces the GPS finder My Locator which, when placed in travelling luggage, can prevent baggage losses at airports; Hidromod which developed the AQUASAFE platform, a support application for the operation and management of the purification and distribution of water, considered one of the most relevant projects as determined by an evaluation conducted via the 2011 Bentley Be Inspired Awards; OutSystems which developed the Agile
33
World market leader in the area of market intelligence in information
technologies, telecommunications and consumer electronics.
Platform, an information hardware that has received 40
aicep Portugal Global Portugal - Country Profile (April 2012) international acclaim, that permits companies to develop, alter and update WEB application networks and was chosen by the United States Army to supply solutions for data center consolidation.
Geographically, the Lisbon metropolitan area continues to represent the largest concentration of services with about one-third of establishments. As for services rendered to businesses, the percentage rises by more than half, while the metropolitan area of Oporto hosts only 18% of the total.
Trade
The macroeconomic indicators relating to both structure and trends in economic activity illustrate the importance of the services sector, and trade in particular, within the context of the overall economy. In 201034, almost 254,000 companies located in the regions of Lisbon, North and Centre, employed more than 800,000 workers and generated a turnover in excess of 133 billion euros, representing 21.7% and 37.8%, respectively, of the business sector. the development of deep discounting, medium-sized supermarkets and large scale specialized centers. In 2010, products bearing in-house labels accounted for 25.7% of overall sales within the super and hypermarket segment of the Comparing the three activities that are part of this sector, retail trade represents 61% of total companies but only 36% of business volume, while wholesale trade involves only 27% of companies but provides 50% of sales volume. The business trade of vehicles accounts for 12% of companies and 15% of invoicing. It is also worth noting the concentration of wholesale sector activity in three groups food products, fuels and consumer goods excluding food which account for 77% of total turnover. Retail trade activity is dominated by supermarket and hypermarket sales which generated the third largest turnover within the trade sector. In the last few years, Portugal witnessed a sharp increase in areas given over to large retail businesses and shopping centers. (Sonae Sierra is a European leader in the creation and management of these consumer giants, with 49 shopping centers in Europe, including Portugal, South America and Africa. It is a leader in the sustainable energy area through the implementation of the concept of the green center in its development and management of its commercial centers.) Shopping centers have expanded in size and can be found not only in major urban centers but also in medium-sized cities. retailing sector, expanding by 29.6% in food products alone.
This sector has deepened knowledge of its clients and recognized the value of service, while improving factors such as proximity, convenience, quality and logistics; there has been an increase in brand development, in products that improve health and safety of clients, and
34 INE 2010 Retail Trade Statistics, 2011 Edition
Financial services
In the last few years the banking system, the insurance sector and capital markets in general experienced major changes. Today, Portugals banking sector is modern and encompasses commercial banking, investment banking, investment funds, and insurance companies. They operate 41
aicep Portugal Global Portugal - Country Profile (April 2012) on similar standards as their counterparts in other European countries as to profitability, solvency and cost structure. In 2011 there was a slowdown in the global economy35 The global financial crisis that started in the mortgage market in the United States around the middle of 2007 and then appeared in the banking system with the bursting of the bubble in speculative real estate, with cascading losses in the financial sector, spread at an extraordinarily high speed to the entire international financial world. The rapid contagion to a large extent was due to the fact that it occurred in a sector that operates on a global basis and is strongly linked through networks involving loans and insurance risk covering those loans. That led to disequilibrium and instability and, in extreme circumstances, provoked the failure of important financial institutions and raised the need for Government intervention to halt its spread. that was much greater in the developed countries, particularly the United States and Japan, and there was moderate growth in the European Union, especially in the Euro Area. According to the European Central Bank36, economic activity in the Euro Area weakened over the course of 2011, ending with a contraction of GDP in the fourth quarter and an average yearly growth rate of 1.5%. This deceleration was accompanied in large measure by the decline in global economic growth, an increase in prices of raw materials, the adverse impact of the sovereign debt crisis on consumer confidence as well as a deterioration in credit conditions and the adoption of additional budget consolidation measures in various countries that are part of Portugal too did not remain immune to this crisis. Even though it benefits from a modern and robust financial system, there has been a need for public intervention in order to stabilize the system so as to avoid an even greater risk of insolvency and reduce the effects of a sharp halt to credit availability. There are five major banks and they are Caixa Geral de Depsitos (part of the public sector) and the private banks: Millennium BCP, BES - Banco Esprito Santo, BPI - Banco Portugus de Investimento, and Banco Santander-Totta. the single currency.
8. Economic situation
8.1 Recent economic policy

The spread of the Euro Area sovereign debt crisis over the course of 2010 and 2011 contributed towards the deterioration of conditions in accessing international financial markets.
In these adverse conditions, at the beginning of 2011 the Portuguese public sector confronted a much more restrictive environment affecting not only its own ability to access international financial markets but that of the Portuguese banking sector as well.
With the economy characterized by a trend towards lower growth, a high level of external indebtedness, as well as an excessive public sector deficit, these developments brought into question the sustainability of public finances that made it inevitable to seek financial assistance from the European Union, the European Central Bank and the International Monetary Fund in April.
35 36 IMF World Economic Outlook Update, January 2012 Macroeconopmic Projections March 2012
42
aicep Portugal Global Portugal - Country Profile (April 2012) In turn, it became urgent to move ahead to correct the macroeconomic imbalances that had accumulated over the years. The budget consolidation process that took place in 2010 clearly turned out to be insufficient in light of the magnitude of existing disequilibria. The established targets for both the budget deficit and the public debt were surpassed and reached historically high levels. unemployment rate increased 1.9% on a year-over-year basis and reached 12.7%. The youth unemployment rate (between the ages of 15 and 24) was 30.1% or 2.4 times the overall jobless rate and 7.7% higher than the rate of the previous year. The number of unemployed youth represented 11.7% of the total population between the ages of 15 and 24 years and 18.9% of all the unemployed.
The Economic and Financial Support Program (EFSP) agreed with the European organizations and the IMF for the 20112013 period, encompasses an ambitious set of economic and financial adjustment measures designed to assure balanced and sustained economic growth in the medium and long term, to remove obstacles to economic growth, and to promote competitiveness and employment in order to guarantee a sustainable path for public finances.
The inflation rate38 increased to 3.6% in 2011 (1.4% in 2010) under the influence of price pressures stemming from energy products, given that the average price per barrel of oil went as high as $104.23 last year, and prices of other raw materials in international markets also rose.
The government deficit reached -4% of GDP, below the -5.9% ceiling set in the EFSP, although the outcome benefited from a series of extrordinary measures that will
The relevance of the measures to be implemented and the need to comply with the objectives that were set for Portugal determined the pace of economic activity over the course of 2011 and also had a significant impact on a social level.
not be repeated.
8.2 The economic outlook

The outlook for global economic activity excluding the
In terms of the economy, real GDP experienced a decline of 1.6% after increasing 1.4% in 2010. This contraction reflected a negative trend in domestic demand (which contributed -6.2% to the annual GDP change compared with 0.9% in 2010), especially because of the significant contraction of private consumption (-3.9% versus 2.1% in 2010) and the decline in investment (GFCF) for the fourth consecutive year. The opposite occurred with net external demand which contributed 4.6% in 2010 versus 0.5% the year before, due primarily to a very sharp decline in imports.
Euro Area points towards an estimated growth forecast of 3.8% in 2012 and 4.3% in 201339. The most recent data indicate that the global economy could be at a cyclical turning point since the American economy is showing some signs of improvement as noted by better consumer and business confidence indicators and some improvement in international financial market conditions. Nonetheless, the growth outlook for the medium term remains moderate, particularly in the developed economies, where there is an ongoing process to correct the excessive indebtedness of businesses and consumers and to balance public spending. The emerging economies on the other hand are likely to continue growing at a fairly rapid pace, especially the Asian countries and China in particular. The Central and Eastern European countries are likely to experience somewhat slower growth.
38 39 Average inflation as per the Harmonized Index of Consumer Prices (HICP) Macroeconomic forecasts for the Euro Area projected by European Central Bank
At a social level, given the decline in economic activity, there was a sharp deterioration in labor market conditions in 2011, especially in the fourth quarter. In annual average terms, the employed population declined 2.8%37 and unemployment rose in all segments of the labor market, affecting nearly 700,000 workers. The average
37 INE Unemployment Statistics 2011
(ECB) experts March 2012
43
aicep Portugal Global Portugal - Country Profile (April 2012) Within this environment and based on information available as of February 23, 2012, ECB projections for Euro Area macroeconomic outlook point to an average growth rate in real GDP of between -0.5% and 0.3% in 2012, and between 0.0% and 2.2% in 2013. The forecasts of the Bank of Portugal in their Spring Bulletin of March 2012 point to a 3.4% contraction in 2012 in Assuming that the worst phase of the financial crisis has been surpassed, a recovery in economic activity is foreseen by the ECB beginning in the second half of 2012 with the pace of activity likely to accelerate in 2013. This recovery is likely to reflect the gradual strengthening of domestic demand, and the positive contribution from net exports due to higher external demand and exchange rate depreciation. Domestic demand will continue to be the weakest component of Portuguese economic activity in 2012, especially private consumption which is expected to fall by 7.3% in 2012 and 1.9% in 2013, reflecting a decline in family disposable income which is also affected by limited access to financing which in turn restricts consumption. The IMF40 forecasts indicate a recession in the Euro Area in 2012 (-0.5%) and a slight recovery in 2013 (+0.8%). According to the ECB, inflation should turn out to be between 2.1% and 2.7% in 2012 and between 0.9%and 2.3% in 2013. In addition, the reduction in wages and salaries resulting from budgetary consolidation measures that were taken, and overall poor labor market conditions are also factors to take into consideration. In 2012, investment (GFCF) is likely to decline even more than in 2011 (-12.0% compared with -11.4% in 2011), reflecting a deterioration in domestic demand. In 2013, there is expected to be some recovery, provided that there is an increase in foreign demand. Portuguese economic activity in real terms, followed by stagnation in 2013. The global recovery, although moderate, will bring about an increase in foreign demand in the Euro Area that is likely to rise from 4.3% in 2012 to 6.5% in 2013.
The forecast of a moderation in the inflation rate is due largely to a gradual decline in the oil price over the two years, offsetting the effects of prior increases.
40 IMF WEO Update, January 2012
Main economic indicators (%)

2008 Gross domestic product b Private consumption b Public consumption b Gross fixed capital formation b Exports of goods and services b Imports of goods and services b Current account balance (% of GDP) Public sector balance (% of GDP) Public debt (% of GDP) Unemployment rate Inflation rate c 0.0 1.3 -0.1 -0.3 -0.1 2.3 -12.6 -3.5 71.6 7.6 2.7 2009 -2.9 -2.3 -13.3 -8.6 -10.9 -10.0 -10.9 -10.1 82.9 9.5 -0.9 2010 1.4 2.1 -3.6 -4.1 8.8 5.4 -10.0 -8.3 93.3 10.8 1.4 2011 -1.6 -3.9 -3.9 -11.4 7.4 -5.5 -6.4 -4.2 107.8 12.7 3.6 2012a -3.4 -7.3 -1.7 -12.0 2.7 -5.6 -5.0 -4.5 112.5 13.6 3.2 2013a 0.0 -1.9 -1.2 -1.7 4.4 0.0 -3.8 -3.2 112.1 13.7 0.9
Sources: INE - Instituto Nacional de Estatstica, Banco de Portugal (Economic Bulletin, March 2012) Notes: (a) Forecasts; (b) Change in real terms; (c) Harmonized Index of Consumer Prices
44
aicep Portugal Global Portugal - Country Profile (April 2012) Exports, on the other hand, are likely to make a positive contribution towards sustaining economic activity in 2012, despite the expectation of some deceleration (from 7.4% in 2011 to 2.7% in 2012) as a result of a decline in the growth rate of foreign demand impacting the Portuguese economy. In 2013, the export growth rate is likely to be close to 4%. The adjustment in the public and private sector expenditures will result in a significant improvement in both the current Imports are expected to decline 5.6% in 2012 (the same result as in 2011), and in 2013 will register no growth, assuming that there is a recovery in production with a relatively high import content.
GDP growth rates (%)
account and capital balances.
Inflation as measured by the Harmonized Index of Consumer Prices (HICP) should stabilize in 2012 at 3.2%, compared with 3.6% recorded in 2011, and drop to 0.9% in 2013. In 2012, a portion of the still high inflation is directly related to the fiscal measures that were taken, including an increase in the VAT applicable to certain goods and services (at the reduced level or intermediate tax rates), even though the automatic effect of this tax increase is partly mitigated by the decline in domestic demand and by
2009 2010 2011 2012a 2013a
the anticipated effect on salary costs. These forecasts also imply a deceleration related to energy prices while the nonenergy component is expected to remain stable.
Portugal
Euro Area
EU27
Sources: Portugal (Banco de Portugal); EU27 and Euro Area (Eurostat Last Update 29.03.2012) Note: (a) Forecasts
In so far as the labor market is concerned, there is likely to be a reduction in employment of 3.6% in 2012 and of
Inflation rates
Unemployment rates1
2009 Portugal
2010
2011 Euro Area
2012a EU27
2013a 2009 Portugal 2010 2011 Euro Area 2012a 2013a EU27
Sources: Portugal (Banco de Portugal); EU27 Euro Area (2009-2011 Eurostat Last Update 20.03.2012; 2012 European Commission, Interim Forecast, February 2012; 2013 European Economic Forecast Autumn 2011) Notes: (a) Forecast Inflation rate - Harmonized index of consumer prices
Sources: Portugal (2009-2011 Banco de Portugal; 2012-2013 AMECO European Commission); EU27 and Euro Area (2009-2011 Eurostat Last Update 14.03.2012; 2012-2013 AMECO European Commission) Notes: (a) Forecasts; (1) Unemployed population/Active population
45
aicep Portugal Global Portugal - Country Profile (April 2012) 0.7% in 2013. In 2012, the reduction is expected to occur mostly in the private sector, reflecting reduced economic activity, while public sector employment should maintain a relatively constant rate of attrition both in 2012 and in 2013, although the estimated decline in the second year is likely to be greater than that of the private sector. Guaranteeing continued financing to the most competitive sectors of the economy and adoption of policies leading to the creation of employment are fundamental in order for Portugal to return to a sustainable economic growth path.
8.3 The regional economies

Available indicators concerning the Regions (NUT II and III), such as GDP, per capita GDP and unemployment, confirm the existence of a significant regional asymmetry in Portugal. However, if we consider the Competitiveness Index, the competitive advantage of the Litoral or Coastal regions becomes evident, especially those located close to
The EFSP imposes a deficit limit equal to 4.5% of GDP on the public sector budget, based on national accounts of 7,645 million euros in 2012, and its fulfillment is a necessary precondition to guarantee continued financing for the Portuguese economy associated with this Programme. For 2013, the projected deficit target is 3%. To meet this target, it is necessary to continue efforts towards budgetary consolidation and correction of macro-economic disequilibria. Nevertheless, to achieve true success a substantial improvement in the quality of factors that determine economic growth is absolutely necessary.
the largest urban centers of Lisbon and Oporto, compared with the Interior. Only the sub-regions of Ave and Greater Oporto in the North, Baixo Vouga in the Centre, Greater Lisbon and the Setbal Peninsula in the region of Lisbon, and Coastal Alentejo show competitiveness indicators over 100, indicating they are above the national average.
Competitiveness (Portugal = 100), NUTS III, 2009

Grande Lisboa Grande Porto Baixo Vouga Entre Douro e Vouga Pennsula de Setbal Ave Cvado Algarve Pinhal Litoral Minho-Lima Oeste R. A. Madeira Do-Laf es Baixo Mondego Lezria do Tejo Mdio Tejo R. A. Aores Alentejo Litoral Alentejo Central Tmega Cova da Beira Pinhal Interior Norte Baixo Alentejo Beira Interior Norte Beira Interior Sul Douro Alto Alentejo Alto Trs-os-Montes Pinhal Interior Sul Serra da Estrela 80 85 90 95 100 105 110 115 120 125
Source: INE - Synthetic index of Regional development, 2009
46
aicep Portugal Global Portugal - Country Profile (April 2012) In 201041 (latest year available), the regional performance of GDP in real terms differed in all the various regions, in direct contrast to the previous years outcome when there was an overall decline in real GDP at the national level (-2.9%) in 2009. Despite the unfavorable international economic environment, all regions participated in the national recovery, particularly the regions of Lisbon (+1.8%) anf the North (+1.4%), although the Algarve registered zero growth compared with the prior year. Regional per capita GDP data at current prices show that Lisbon has assumed the uppermost position compared with the other regions of the country. In 2010, Lisbon had reached a per capita GDP of 22,700 euros, the equivalent of 140% of the national average (16,200 euros). Over the years, Madeira turned out to be the region which experienced the most improvement compared with the national average from 112% in 2000 to 130% in 2010. As for the services sector, Lisbons importance is truly outstanding with almost 42% of total GVA, and so is the Greater Lisbon area within the context of NUT III (36.7% of GVA in the services sector). As for the other regions, only the Algarve, with a per capta GDP of 17,000 euros exceeded the national average. The North, Centre and the Azores regions did not converge with the rest of the country during the 2000 decade and their incomes are now below the national average at 80.2%, 83.3% and 93.8%, respectively. As for NUT III, the Oeste accounts for 8% and the Lezria do Tejo for 6.5% of GVA in the agricultural sector. In industry, the North and Lisbon regions occupy the top rankings with 40.7% and 28% of industrial GVA, and in NUT III Greater Lisbon with 21.3% and Greater Oporto with 12.6% of GVA both stand out. In terms of the regional breakdown of GVA by sector of activity, in agriculture the Centre accounts for 29.7% of the overall sector comprising agriculture, fishing and related activities and is the most representative region, followed by the Alentejo with 26.4%. the greater share of GVA (37.3% of the national total), and the North region, has largest share that refers to employment (34.8% of the total).
At the NUT III level, there was considerable divergence, especially notable when comparing Greater Lisbon (167.3) with the Serra da Estrela (54.3) or Tmega (55.5), the maximum and minimum indices compared with the national average.
As far as evident worker productivity (GVA/employment), only the regions of Lisbon (45,000 euros), Madeira (38,200) and the Algarve (33,400) exceeded the national average (30,300 euros). As far as the geographical breakdown of GVA and employment, the region of Lisbon stands out for
41 INE Regional Statistics Preliminary data
47
North
The North is one of the oldest regions of Portugal but is the one that has the youngest population in the Continent (37.8% of the total population between ages 15 and 24 years). In this region can be found the second largest Portuguese city, Oporto, which contributes in a major way to the important position the region has relative to the national GDP (second position with 28.1% of the total). In 2010, the economy of this region recovered from a 3.6% decline the previous year and grew at the same pace as the national economy (1.4%).
The labor force participation rate is above the national average, and the second highest in regional terms. However, although it is a leader in employment it also has a slightly higher than average unemployment rate (13%), a not so positive factor, but is understandable based on the industrial characteristics of this region and the disruptions experienced by the changed nature of business activity in the region. Meanwhile it keeps up a significant export activity, accounting for 35.7% of all Portuguese exports in 2010, mostly consumer goods (textiles and footwear) and industrial products.
General Data
Area Total population (2011) Capital Sub-regions 21,286 km2 (23.1% of the Continent) 3,745,900 Oporto Alto Trs-os Montes, Ave, Cavado, Douro, Entre Douro e Vouga, Grande Porto, Minho-Lima, and Tmega 86 (27% of the national total) Plains along the coast; hills and mountains in the interior. Minho and Douro. Pines, including the maritime type on the coast; Eucalyptus, which is replacing oaks.
Douro river (Oporto city)
Antonio Sacchetti
Councils Geomorphologic characteristics Major rivers Flora
Agricultural sector (major economic activities) Industrial sector (principal industries) N of exporting companies (2010) Infrastructure
Wheat, maize, vegetables and vines (first region of demarcation in the world - Douro), with Port wine that is unique. Cattle grazing and fishing. Electric and electronic equipment, automotive components, shipbuilding, textiles, footwear, furniture, cutlery and ironworks, wood and cork, dairy products; mining. 6,717 (37.8% of the total) Port of Leixes, Oporto International Airport; good roadway connections (auto-estradas, IP and IC); Oporto subway/underground system
Main Economic Indicators

Unit Gross Domestic Product (GDP) a GDP per capita a Employment Productivity (GVA/Employment) Exports of goods Imports of goods Million Thousand Thousand Individuals Thousand Million Million 2006 44,593.0 11.9 1,805.3 21.2 14,499.0 14,691.0 2007 47,385.0 12.7 1,800.7 22.7 15,058.0 13,416.0 2008 48,488.0 13.0 1,811.7 23.2 14,399.0 13,190.0 2009 47,205.0 12.6 1,753.7 23.8 11,897.0 10,433.0 2010 48,542.0 13.0 1,732.9 24.5 13,126.0 10,791.0
Source: INE Instituto Nacional de Estatstica - Regional Accounts and Employment Statistics 2010 Note: (a) Current prices
48
Centre
The Centre Region, although it is the third most important contributor to national GDP (18.6%), registered a nominal GDP growth rate of 1.1% in 2010, thus following the national economic recovery trend. Per capita GDP (13,500 euros) corresponds to 83.3% of the national average. Although it is the region with the third highest population over the age of 45 years, it represents a labor force participation rate of 62% of the population aged 15 years and older which is higher than the national average (61.3%). The employment rate corresponds to 55.6% of
the labor force participation rate for the same age group that is distributed mostly in industry and in the services sector, thus making the Centre region the one with the lowest unemployment rate on a regional basis (10.3%). In the period 2006-2010, the regions apparent labor productivity rose and in the last year growth was up about 3%. It should also be noted that the Centre has a surplus in its trade balance and accounted for about 20% of national exports, primarily industrial goods (machinery and appliances and transport equipment).
General Data
Area Total population (2011) Principal cities Sub-regions 28,199 km2 (30.6% of the Continent) 2,374,400 Coimbra and Aveiro Baixo Mondego, Baixo Vouga, Beira Interior Norte, Beira Interior Sul, Cova da Beira, Do-Lafes; Mdio Tejo, Oeste, Pinhal Interior Norte, Pinhal Interior Sul, Pinhal Litoral, Serra da Estrela Relatively flat terrain near the coasts; Rocky terrain in the interior (shale, granite, wolfram). Relevo aplanado junto ao litoral; Relevo rochoso no interior (xisto, granito, volfrmio). It is one of the richest areas in forests, especially olive trees.
Pido Village (partial view)
Antonio Sacchetti
Geomorphologic characteristics
Caractersticas geomorfolgicas
Flora
Predominant countryside Industrial sector (principal industries) N of exporting companies (2010)
Diversified countryside with contrasts between beaches on the coast and mountains; rich in architectural landmarks Chemical industry, automotive components, moulds, pulp and paper, textiles (wool), ceramics, dairy products, olive and meat processing, winemaking; mining (gold, lead, wolfram, and tin). 3,843 (21.6% of the total)

Unit Gross Domestic Product (GDP) a GDP per capita a Employment Productivity (GVA/Employment) Exports of goods Imports of goods Million Thousand Thousand Individuals Thousand Million Million 2006 30,333 12.7 1,286.6 20.3 7,422 6,971 2007 31,746 13.3 1,294.5 21.2 7,915 7,051 2008 31,677 13.3 1,292.7 21.3 7,630 7,059 2009 31,362 13.2 1,255.1 22.1 6,486 5,377 2010 32,161 13.5 1,242.8 22.6 7,434 5,982
49
Lisbon
The Region of Lisbon, due to the importance and economic weight of the sub-region of Greater Lisbon in the overall economy, shows up as the leader in nearly all regional economic indicators. This region is the most important contributor to national GDP (with a contribution of 37.3%), and in labor force productivity (45,000 euros compared with a national average of 30,300). In terms of per capita income, Lisbon together with Madeira exceeds
the EU27 average (index 113). Lisbon accounts for 25% of employment and 37% of the countrys GVA. It is also responsible for 30% of Portugals total exports, especially mineral products, transport materials, machinery and electrical equipment, and chemical products. Despite being the second region in terms of number of exporting companies (surpassed only by the North), it is the one that has the most qualified labor force and the largest number of high technology companies can be found there.
General Data
Area Total population (2011) Capital Sub-regions 3,002 km2 (3.2% of the Continent) 2,846,900 Lisbon Greater Lisbon and Peninsula of Setbal 18 (5.8% of the national total) There are beaches and many green areas. Tagus and Sado
Praa do Comrcio and Terreiro do Pao squares - Arch of Augusta St.
Jos Manuel
Councils Countryside
Major rivers
Agricultural sector (predominant agricultural activities) Industrial sector (principal industries) N of exporting companies (2010) Services
Has much fertile land in areas near rivers. Principal crops: cereals, fruit, vines, and horticultural products. This region groups together many large and medium-sized companies in manufacturing. For example: petrochemical, shipbuilding, steel-making, automotive industry, textiles, salt extraction, stone quarrying, fishing, and wine-related activities. 5,919 (33.3% of the total) In this region are concentrated most of the service activities, with the tourism sector being a major industry.

Unit Gross Domestic Product (GDP) a GDP per capita a Employment Productivity (GVA/Employment) Exports of goods Imports of goods Million Thousand Thousand Individuals Thousand Million Million 2006 59,470 21.4 1,295.4 39.5 7,527 21,591 2007 62,668 22.4 1,305.6 41.4 10,528 31,946 2008 63,880 22.7 1,327.5 41.8 11,771 35,724 2009 62,911 22.3 1,285.6 43.2 9,437 29,321 2010 64,313 22.7 1,251.8 45.0 11,019 32,086
50
Alentejo
The Alentejo Region is characterized by great distances between localities; it is sparsely populated despite having experienced large numbers of emigration and migrations. The economic profile of this region has been changing in the past few years as a result of two large projects with enormous implications for the economic structure of the Alentejo: in the interior the Alqueva and along the coast the industrial zone and port of Sines. Because of these changes the region is experiencing gains that are very close to the national average in terms of both per capita GDP and productivity. With an employment rate of 50.6% in 2011, the Alentejo saw an increase in employment of about 9% compared with the previous year. As for regional share of GVA by sector of activity, the Alentejo is responsible for 26% of GVA in agriculture, followed by
the Centre region. The most dynamic sub-regions are the Coastal Alentejo (it has a per capita GDP above the national average) and Lezria do Tejo (it accounts for 33% of employment and 31% of the regional GVA). They exported more than two billion euros in 2010 (6% of the national total), especially mineral products, chemicals, plastics and rubber products, machinery and electrical equipment and food products. The multifaceted project of the Alqueva has added a great deal of dynamism to the interior area of the Alentejo. Various infrastructures of the Alqueva Global System have already been built and many other are well advanced. Today, the Alqueva is about to become one of the finest tourist destinations. The logistics platform of Sines and its port (the countrys leader in the quantity of merchandise moved) have assumed a fundamental role in the economic and entrepreneurial fabric of the region.
General Data
Area Total population (2011) Principal cities Sub-regions Councils Geomorphologic characteristics 31,605 km (34.3% of the Continent) 747,300 Evora and Beja Alentejo Central, Alentejo Litoral, Alto Alentejo, Baixo Alentejo, and Lezria do Tejo 58 (18.8% of the national total) There are plains, except in the north and east which is characterized by mountain areas of low altitude. (Serras of So Mamede and of the Marvo). Hot and dry (different from the rest of the Portuguese territory), due to low precipitation.
EDIA,S.A.
Climate
Alqueva Dam
Flora Mining Agricultural sector (major agricultural activities) Industrial sector (principal industries) N of exporting companies (2010) Major projects at the regional level
Above all olive trees, cork trees, red oaks, and pines. Copper, sulphur, marble, and pyrite. Wheat, barley, oats, and sunflowers; raising of pigs, sheep, and horses. Petrochemical industry, automotive and electronic components, marble industry, winemaking, olive and meat processing. 827 (4.7% of the total) Alqueva Dam - largest dam in Portugal and in Europe, situated on the Guadiana River, in the interior part of the Alentejo, close to the Spanish frontier. Port of Sines logistics platform for ports and industries, international logistics for services and energy.

Unit Gross Domestic Product (GDP) GDP per capita a Employment Productivity (GVA/Employment) Exports of goods Imports of goods
a
2006 10,929 14.3 345.7 27.2 3,739 7,838
2007 11,313 14.8 342.8 28.5 2,354 2,160
2008 11,265 14.8 333.2 29.4 2,226 2,041
2009 10,798 14.3 328.9 29.0 1,680 1,668
2010 11,027 14.7 327.1 29.5 2,165 2,000
Million Thousand Thousand Individuals Thousand Million Million
51
Algarve
The Algarve is the southernmost region of Continental Portugal and is known as one of the principal tourist destinations in Portugal, offering many diversified and quality attractions. As a result, the services sector (which represents 81% of GVA and accounts for 77% of the total employed population in the region in 2010) dominates economic activity in the region, with tourism being the strategic component of the economy of the Algarve.
In 2011, the Algarve accounted for 14 million registered nights spent in hotels (+6.2% compared with 2010) and was the region that generated the highest total income with revenues valued at 574 million euros. In the same year, 2.8 million passengers arrived at the Faro Airport, an increase of 7% over 2010. The importance of this subsector led the region to register values above the national average in terms of per capita GDP growth (index 104.9) as well as in labor productivity (33,400 euros).
General Data
Area Total population (2011) Capital Cities (16) 4,996 km (5.4% of the Continent) 438,400 Faro Albufeira, Alcoutim, Aljezur, Castro Marim, Faro, Lagoa, Lagos, Loul, Monchique, Olho, Portimo, S. Brs de Alportel, Silves, Tavira, Vila do Bispo, and Vila Real de Santo Antnio. Plains along the coast; higher elevations in the interior. The highest point is in the Serra de Monchique.
Jos Manuel
Geomorphologic characteristics
Main rivers
Guadiana, on the frontier with Spain.
Lagos beach
Flora Agricultural sector (main agricultural activities) Industrial sector (principal industries) N of exporting companies (2010) Services
Characterized by almond trees, prickly cactus, thistle flowers, lavender, red oaks, cork trees, olive trees, and carob shrubs Maize and wheat. Traditional agricultural products of note are dried fruits (figs, almonds and carob beans), berry brandy and cork. Donkey raising prevails in grazing. Fish farming, forestry (cork and carob bean), marble works, pottery, copper and wood, food products (biological products), fishing industry (canning). 266 (1.5% of the total) Tourism. The region has beautiful beaches and natural scenery.

Unit Gross Domestic Product (GDP) a GDP per capita a Employment Productivity (GVA/Employment) Exports of goods Imports of goods Million Thousand Thousand Individuals Thousand Million Million 2006 7,102 17.0 201.7 30.3 187 369 2007 7,542 17.8 202.4 32.2 128 299 2008 7,642 17.9 203.1 32.7 121 281 2009 7,241 16.8 200.0 32 88 214 2010 7,381 17.0 193.5 33.4 90 187
52
Azores
The Autonomous Region of the Azores is considered the western frontier of the European Union. Its GDP reached 3.7 billion euros (+52% from 2000 in nominal terms) and GDP per capita was close to the national average. The population of the Azores has the largest proportion of youth between 15-24 years (14.3%) and the lowest share of elderly persons (12.7%), compared with the national average. Despite the small size of its economy (2.2% of national GVA), the Azores had a productivity index (29,600 euros) that is close to the national average (30,300). There as been a great
deal of diversification in the agriculture sector so today it is the second largest European region in the production and export of prteas, an ornamental plant cultivated in seven of the archipelagos islands. Full of natural beauty, the Azores are a logical choice for tourism activity (more than one million overnight stays in 2011, of whom 54% were foreigners), considered of strategic importance in the regions development. The services sector accounted for 75.3% of GVA and 64.9% of the regions employment.
General Data
Area Total population (2010) Capital Other important cities Composition of the archipelago 2,322 km2 246,100 Ponta Delgada Horta and Angra do Herosmo Nine islands and some uninhabited islets (the Formigas). Islands of the eastern group: Sta. Maria and S. Miguel. Central Group: Terceira, Graciosa, S. Jorge, Pico, and Faial. Western group: Flores and Corvo.
Associao de Turismo dos Aores
The Pico Island
Geomorphologic characteristics Flora
Volcanic origin, except Sta. Maria. There are still active volcanoes on the island of S. Miguel. There are 56 indigenous species; the typical local vegetation of the Azores is one of the most interesting in Europe. The most important are cedar, holly, the ericaceous tree, heather, and heath, etc. Migratory birds, the So Miguel bulldog and various types of fish of interest to sports fishermen. Maize, sweet potato, wheat, and yams. Cattle raising. Fishing activity (especially tuna) and the traditional whale hunt. Besides industries linked to agriculture (dairy products and similar) and fishing, there is some light manufacturing. 69 Tourism
Fauna Agriculture and fishing sectors (principal activities) Industrial sector (principal industries) N of exporting companies (2010) Services

Unit Gross Domestic Product (GDP) a GDP per capita a Employment Productivity (GVA/Employment) Exports of goods Imports of goods Million Thousand Thousand Individuals Thousand Million Million 2006 3,390 14 107.5 27.1 24 123 2007 3,549 14.6 107.3 28.6 41 79 2008 3,689 15.1 111.2 28.8 47 87 2009 3,650 14.9 112.2 28.7 84 125 2010 3,728 15.2 110.3 29.6 75 150
53
Madeira
The economy of the Autonomous Region of Madeira is based mostly on the services sector (84% of regional GVA), with tourism being the most important source of revenue. The primary agricultural crops are bananas for local and national consumption, flowers and the well-known Madeira wine. In the industrial sector, which accounts for 14% of regional GDP, there are handicrafts activities aimed at the export market such as embroideries, tapestries and wicker baskets that coexist together with other production destined for the regional market such as milling, bread and pastry, dairy products, beer, tobacco, and wine.
In the last few years, there has been a rapid build-up of infrastructures, particularly to enhance accessibility, as well as more schools and health facilities, in order to improve living conditions of the population and businesses so they can participate more actively in the Regions development.
It is worth noting that the dynamic conditions in the area (GDP per capita is above the national average index 130.2) have resulted in job creation for the local active population, so that the unemployment rate was only 7.4%, the second lowest in the country after the Azores.
General Data
Area Total population (2011) Capital Geographical situation 801 km2 247,700 Funchal Archipelago in the Atlantic Ocean at 978 km southwest of Lisbon and about 700 km from the African coast. Island of Madeira, island of Porto Santo, Ilhas Desertas and Ilhas Selvagens. The last two are not inhabited but are natural reserves. Volcanic origin.
View of the city of Funchal
Paulo Magalhes
Composition of the archipelago
Geomorphologic characteristics Flora Agricultural sector (principal activities)
The indigenous forest of Madeira, the Laurissilva, is a treasured patrimony for being one of the rarest forests on the planet. There are other plants and trees and flowers (orchids). In the lowlands, close to the sea: banana, custard fruit, mango, sugar cane, and maracuj. At moderate elevations: potato, beans, wheat, maize, and Mediterranean fruit trees (fig trees, medlar trees). In higher elevations: pasture lands, pines and woods. As for grazing, there are sheep and goats and a few cattle. There are some traditional forms of fishing in catching tuna and swordfish. Handicrafts activities: embroidery, tapestry and wicker items. Small industries focused on local markets: pastas, dairy products, sugar cane. 131 Tourism
Industrial sector (principal industries) N of exporting companies (2010) Services

Unit Gross Domestic Product (GDP) a GDP per capita Employment Productivity (GVA/Employment) Exports of goods Imports of goods
a
2006 4,946 20.2 117.3 36.3 45 130
2007 5,047 20.5 116.5 37.4 42 101
2008 5,280 21.4 118.5 38.7 65 115
2009 5,140 20.8 118.7 38.2 60 150
2010 5,224 21.1 119.8 38.2 55 136
Million Thousand Thousand Individuals Thousand Million Million
54
9. Regional Economic Framework Portugal and the European Union

The course of Portugals European journey, first as a member of EFTA between 1960 and 1985, then with the European Community beginning in 1986, had an impact on its economic development. The EFTA effect had an impact in generating more trade between Portugal and the other member countries, the EEC effect introduced new elements with major consequences at an economic level, such as the introduction of the single market, trade liberalization, customs and monetary union, and even an opening up towards Spain which became in just a few years Portugals main trading partner.
especially with the larger countries such as Brazil, Angola and Mozambique where there is a significant Portuguese presence.
Portugals external relations policy will continue to be based on maintaining strong relations with the North Atlantic countries, mainly the United States, due primarily to its NATO presence, as well as promoting closer economic relations with the key emerging markets such as Russia, China and India. Within the European Union, Portugal can be considered as a medium-sized economy that has made all the necessary efforts to achieve economic convergence with the EU. Nevertheless, the international crisis that was unleashed already in 2007 and affected all countries, led to the change in defined goals and a postponement of any further closer integration with the rest of the European Community.
Portugal also has strong cultural ties with the countries that comprise the Portuguese Speaking Language Community (Comunidade de Lngua Portuguesa CPLP) and has been trying to transform these ties into greater political and economic cooperation with the various member countries, In order to have a global overview of Portugals position in 2011 and 2012 in the context of the EU and the Euro Area, below is a comparative table of key economic indicators published by the Economist Intelligence Unit.
Selected Economic Indicators for the European Union
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
GDP(% change)
Unemployment (%)
Inflation (%)
Exports of Goods & Services (% change) EU (New 12)
Imports of Goods & Services (% change) EU27
Current Account Balance (%GDP)
Portugal
Euro Area
EU15
Source: EIU Viewswire Europe 5 Year Forecast Table (20 December 2011); Portugal 5 Year Forecast Table (15 February 2012) Notes: Year 2011 Estimates; Year 2012 Forecasts; exports and imports of goods and services include intra-regional trade; Euro Area (15) includes: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Slovakia, Slovenia, Spain and Portugal; EU15 includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom; EU12 includes Bulgaria, Cyprus, Estonia, Slovakia, Slovenia, Hungary, Latvia, Lithuania, Malta, Poland, Czech Republic and Romania. Data for Malta are not included.
55
aicep Portugal Global Portugal - Country Profile (April 2012) Moreover, this growth will be unequal. While some countries will have the ability to recover rapidly back to levels prevailing prior to the crisis, others will have to face a long period of adjustment.
GDP per capita
10. Foreign Trade

According to the United Nations Report World Economic Situation and Prospects, 2012, the recovery in world
Portugal Euro Area (15) 2011 EU15 2012 EU(N12) EU27
trade that started in 2010 with the record 14% increase in exports and 13.4% in imports (WTO World Trade Organization data) that occurred, was the strongest and quickest recovery in annual terms since 1950, but slowed down to 6.6% in 2011.
Source: EIU Viewswire Europe 5 Year Forecast Table (December 2011) and Portugal 5 Year Forecast Table (February 2012) Notes: Per capita GDP in euros at current prices; Exchange rate US$/ : 1.39 for 2011 and 1.27 for 2012
According to the EIU, in the next few years the macroeconomic environment in Europe will remain much more volatile than in the previous two decades due to extremely fragile financial markets and the absolute necessity for public finance consolidation and adjustment by some of the major economies of the region. Debt levels in certain peripheral countries remain considerably high although some of them, including Portugal, are in the process of complying with Economic and Financial Adjustment Programs. The developing countries were more resilient to the international crisis and, as a result, their importance in world trade continues to increase. Between 1995 and 2010, their share of world trade in volume terms rose from 28.5% to 41.2%. In 2011, they led the recovery in external demand due in large part to their industrial development and so accounted for about half of global import growth. This compares with an average of 43% in the three years prior to the international financial crisis. Between 1995 and 2011, trade among the countries of On the other hand, the EIU forecasts point to continued stagnation for the European economy in 2012, with a deceleration of foreign trade, a contraction in consumption and a reduction of imports, a situation that does not help Portugal, given the significant importance of European countries in its economic relations with the rest of the world. At the European level, the labor market also has experienced a strong deterioration. Average unemployment rates are historically high and, although forecasts call for some recovery in employment, this will be necessarily slow and at different speeds. In 2012 and 2013, world trade will continue to grow at a It is expected that European GDP will grow by 1.5% during the period 2013-2016, which means that it will be one percentage point below the average of the years preceding the start of the financial crisis in 2008-2009. 56 slow pace (4.4% and 5.7%, respectively). The slowdown in economic growth in the most advanced economies will continue to be the primary factor responsible for this sluggishness. In September 2011 the WTO also lowered its forecasts for world trade growth for 2011. According to this source, world exports probably rose 5.8% instead of 6.5% as called for in previous forecasts in April of the same year. The exports of developing countries were expected to have grown 8.5% while those of the advanced economies by only 3.7%. the South increased at an average annual rate of 13.7%, considerably above average world trade growth, which was 8.7% over the same period.
10.1 Trade balance trends

The Portuguese trade balance of goods and services42 is traditionally in deficit. However, since 2008 there has been a gradual reduction in the negative balance, which was cut in half in 2011 compared with the year before. The importexport coverage ratio reached 92% in 2011, whih indicates an increase of nine percentage points (p.p.) compared with the same period the previous year (83%). The trade deficit was 53% lower as imports increased only 1.9%. In the five years 2007-2011, exports of goods and services in nominal terms registered an annual average growth rate of 3.5% with the biggest annual increases occurring in the last two years (+12.7% and +13.3%, respectively). In 2011, exports of goods and services increased 13.3% in value terms from the previous year. Goods alone, which accounted for 69% of total exports, contributed the most to the overall growth outcome (15.4%). Exports of services, on the other hand, showed a real increase of 9% in value in the last year. As for imports of goods and services, the average annual growth rate over the period 2007-2011 was 1.9%, while
42 Banco de Portugal Balance of Payments
2009 was the year that experienced the largest decline in this five-year period (-18.1%). In 2011, imports of goods and services rose 1.9% in value, year-on-year. The services component contributed the most to overall growth with a 5% increase in value, while imports of goods grew by only 1.2% in nominal terms compared with 2010.
The two components together resulted in a positive contribution by net foreign demand to nominal GDP growth of 3.3% in 2011.
Despite expectations of a slowdown in the growth rate, the Bank of Portugal estimates that the net contribution of exports to GDP in 2012 and 2013 will be 3.1 % and 1.6%, respectively.
10.2 Main trading partners43

The EU countries continue to account for a significant share of trade among Portugals trading partners. In 2011, this group accounted for 74% of all Portuguese merchandise exports (contributing 10.4 p.p. towards the overall growth of 15%) and 73% of imports.
43 INE Instituto Nacional de Estatstica Preliminary data
Portuguese Trade Balance (Goods)

Exports Imports Balance Coverage ratio(%)
Unit: Source: Note:
2007 38,525 57,731 -19,206 66.7%
2008 39,201 62,186 -22,985 63.0%
2009 32,021 49,815 -17,794 64.3%
2010 36,889 55,084 -18,195 67.0%
2011 42,570 55,760 -13,190 76.3%
AAGR 3.51 -0.09
Millions of euros (current prices) Banco de Portugal (Balance of Payments) AAGR Arithmetic average annual growth rates
Portuguese Trade Balance (Services)

2007 Exports Imports Balance Coverage ratio(%)
Unit: Source: Note:
2008 17,865 11,263 6,602 158.6%
2009 16,318 10,333 5,985 157.9%
2010 17,578 10,866 6,712 161.8%
2011 19,157 11,413 7,744 167.9%
AAGR 3.34 2.49
16,961 10,428 6,533 162.6%
Millions of euros (current prices) Banco de Portugal (Balance of Payments) AAGR Arithmetic average annual growth rates
57
aicep Portugal Global Portugal - Country Profile (April 2012) As a result, Portugals main clients and suppliers that same year were its EU trading partners. Among clients, the most important were Spain (24.8%), Germany (13.6%), France (12.0%), and the United Kingdom (5.1%). The most important suppliers were Spain (31.6%), Germany (12.4%), France (6.8%), and Italy (5.4%). Despite this, there continues to be a gradual decline in the proportion of trade accounted for by the EU (in 2006, the EU purchased 78% of Portugals exports) which already can be seen from the list of Portugals main client markets that show Angola in fourth place (5.5%), the United States in eighth place (3.5%) and Brazil in the tenth spot (1.4%) in 2011. Taken together, third countries account for 25.9% of all Portuguese exports, contributing 4.9 p.p. to total growth. Portuguese-speaking African countries (PALOP) comprise an important partnership for Portugal with an ever growing interest in those markets on the part of Portuguese companies. The PALOP members purchased 6.9% of total Portuguese exports in 2011 (expanding 21% over the previous year), which represents significant amounts in the imports of these countries, particularly Angola (the fourth client) where Portugal is the leading supplier. PALOPs share of Portuguese imports is not Exports to Latin America, especially to those partners and associates of MERCOSUL, have been rising in
44 Morocco, Algeria, Tunisia, Libya and Mauritania.
very significant (2.1% of the total), despite such imports having more than doubled compared with 2010 due to the contribution from purchases from Angola (up by 109% in 2011).
In 2011, the NAFTA countries accounted for 5.1% of exports, having increased 14% over 2010, and 2.7% of imports. Exports to the United States maintained the eighth position in ranking among Portugals clients, and Portuguese sales destined for this market increased by 13.3% in 2011.
The Maghreb44 countries have been increasing their share of Portuguese trade, largely due to two countries: Morocco has become the 15th client for Portuguese exports and Algeria, for both exports and imports (15th supplier and 17th client), due to natural gas purchases in the first case. In the last five years, Portuguese sales to the Maghreb showed an average annual growth rate of 27.2%.
Geographical Distribution of Portugals International Trade in 2011 Exports

2011
1.8% 2.1% 5.1% 6.9%
75.0%
Imports
2010
1.7% 1.9% 5.2% 6.6% 9.6%
2011
16.9% 1.7% 2.1% 2.7% 3.7%
1.1% 2.2% 2.2% 2.6%
2010
16.3%
9.9%
75.7%
74.1%
EU 27 PALOP NAFTA MAGHREB (a) Mercosul (b) Others EU 27 Mercosul (a)
73.0%
NAFTA PALOP MAGHREB (b) Others
Source: INE Instituto Nacional de Estatstica (preliminary results) Note: (a) Includes: Morocco, Algeria, Tunisia, Libya and Mauritania (b) Includes associate members
Source: INE Instituto Nacional de Estatstica (preliminary results) Note: (a) Includes associate members (b) Includes: Morocco, Algeria, Tunisia, Libya and Mauritania
58
aicep Portugal Global Portugal - Country Profile (April 2012) importance for Portugal. These countries now account for 1.8% of total exports and provide 3.7% of imports, with Brazil being the most important trading partner, especially as a provider, given that Portugal buys a considerable volume of oil products from that country. In analyzing developments on a country by country basis and comparing results beginning with the year that Portugal joined the EU (1986), what really stands out is the sharp increase in the importance of Spain, which has become Portugals top trading partner with its share rising from 6.6% to 24.8% on the client side, and from 10.9% to 31.6% on the supplier side over this period. There has also been an important diversification of markets, especially for foreign sales. Countries like Angola and Brazil that did not appear on the list in 1986 surged in ranking to become among the top 10 Portuguese clients, while the United States has retained its position within this group.
Portugals Main Trading Partners 1986-2011 Clients - 1986

15.2% 35.6% 35.1% 14.7% 24.8%
Clients - 2011
13.6% 6.6% 6.7%

France Germany U. Kingdom USA
14.2% 7.0%
Netherlands Spain Others
3.9% 5.1% 5.5% 12.0%
Spain
Germany France Angola
U. Kingdom Netherlands Others
Suppliers - 1986
14.4%
Suppliers - 2011
35.6% 41.7% 10.9%
31.6%
10.6% 7.9% 7.0%

Germany Spain France Italy
3.3% 4.8%
Spain Germany France Italy
12.4% 5.4% 6.9%

Netherlands U.Kingdom Others
7.5%
U. Kingdom USA Others
Source: INE Instituto Nacional de Estatstica (2011 - preliminary results)
59
aicep Portugal Global Portugal - Country Profile (April 2012) With an increase of 20.2% compared with 2010, Germany made the most noteworthy positive contribution to the overall expansion of exports, followed by Spain (7.9%), France (17.2%), Angola (22%), Belgium (28.4%), the Netherlands (18.5%), the United States (13.3%), China (67.9%) and Italy (10.9%).
Skins and leather Optical and precision instruments Wood and cork
Portugals Foreign Trade by Groups of Products in 2011
10.3 Composition of trade

In examining the composition of Portuguese exports by groups of products, one can note that export growth is now being driven by new sectors rather than by the traditional industries, and this reflects the structural changes stemming from the impact of foreign investment and the strength of those sectors that incorporated the most technology and value added.
Footwear
Textile material
Minerals and mineral products Food products
Wood pulp and paper
Agriculture products
The most important groups of products exported in 2011 were machinery and tools, vehicles and other transport equipment, base metals, plastics and rubber, minerals and mineral products and clothing, which together accounted for 67% of total Portuguese sales abroad. All product groups showed an increase in 2011, but the greatest contribution in terms of percentage points to overall export growth came from vehicles, machinery and equipment, oil products, chemicals and base metals.
Clothing
Chemicals
Other products Plastics and rubber
Oil products
Base metals Vehicles and other transport material Machinery and tools
Machinery and mechanical and electrical tools (14.5 % of the total) constitute another significant group in foreign sales and they include modern companies offering certified products and high technology and are growing in importance, including among the most important, moulds for the plastics industry and electrical machinery and apparatus, as well as electric lines and cables, transformers and integrated circuits and electronic microchips.
Exports
Imports
Source: INE Instituto Nacional de Estatstica (preliminary results)
clothing and footwear (13.3% of the total) that are the most important traditional Portuguese exports, but they show a clear trend towards an increase in value added due to investments in technology made by the sector in order to improve the quality and design of their products. In this last group, the good performance by the footwear industry should be noted due to its 15.5% increase in 2011. 60
Vehicles and other transport materials represented 13.3% of all goods exported in 2011 (12.4% the previous year), reflecting a recovery phase in the auto industry which is also having repercussions on subsidiary subsectors (components and accessories for motor vehicles), followed by textilels,
aicep Portugal Global Portugal - Country Profile (April 2012) The wood, cork, paper and wood pulp industries together were responsible for 8.5% of total exports, with an increase in absolute terms of 237 million euros. Especially significant were wood and cork compared with 2010. Portugal is the global leader in the cork market with a share that is more than 60% of total world exports of the product. three regions mentioned, it was the one region that in 2010 showed the most increase in foreign sales (16.8%) on a year-on-year basis. Madeira and the Azores continue to be strongly dependent on foreign markets, and recorded declines in exports (-8.0% and -10.7%, respectively).
In the composition of imports, the market leaders were oil products (17.9%) followed by machinery and tools (15%), vehicles and transport equipment (10.6%), agricultural products (10.4%) and chemical products (10.4%) all of which together accounted for 64.3% of Portugals total purchases abroad. Portugal maintained its dependency on energy products. In 2011, the increase in value terms was 23.5%, mirroring the increase in the price of oil and natural gas in international markets. Data for industrial manufactured products classified by degree of technological sophistication indicated that products designated as high and medium-high technology products represented 39.2% of all Portuguese exports of this type in 2011.
As far as principal trading partners are concerned, the EU dominates in all regions of the Continent both as to export markets for Portuguese products as well as being the area from where most imports originate. In the exports of the Algarve, the North and the Alentejo, the share of EU countries exceeded 80% of the total. In the other regions, although the share is lower, it is still above half of the export total, except for Madeira, where they absorb 42% of the total. The importance is greater when imports are concerned. Only Lisbon and the Azores have greater diversification in the market origin of their purchases abroad.
Among the EU countries, Spain stands out as both client and supplier in all the regions of the Continent, particularly in the Algarve and the Azores. Outside the EU, Angola holds the
10.4 International trade45 and the regions

In 2010 (preliminary data), the Centre, North and the Alentejo were the only regions where exports were greater than imports with coverage rates of 124.3%, 121.6% and 108.2%, respectively.
top position as a client in all regions except the Azores.
As for non-EU suppliers, China is in first place in the North, Centre, Alentejo and the Algarve; Algeria in the Alentejo; Nigeria in Lisbon; Brazil in Madeira, and Canada in the Azores.
Concerning export products, machinery and transport Of the three regions that most contributed to international trade (North, Lisbon and the Centre), Lisbon was the one that showed the largest deficit, with the value of its exports reaching one-third that of imports, due to the variety of trade, by the importance of the Port of Lisbon as an entry point for imported goods, and the great concentration on new technology companies requiring imported components. These characteristics are responsible for the growing importance of imports. Nonetheless, among the
45 Declared values
material comprise the foremost category in the Centre region while in Lisbon mineral products, transport equipment and machinery predominate. Textile products, footwear, machinery and transport equipment are the top exports from the North; mineral products, chemicals, machinery and food products in the Alentejo; and agricultural and meat products in the Algarve. In the Azores and Madeira, meat and food products are their best-placed exports, and finally mineral products in the Azores and chemicals in Madeira are their most important exports. 61
11. Investment
Despite the global economic slowdown, investment flows increased 17%46 in 2011 compared with the previous year, reaching a level of US$1,509 billion, that is, a value close to that prevailing before the start of the international financial crisis.
11.1 Foreign direct investment trends in Portugal

Foreign direct investment (FDI) in Portugal amounted to between 30 and 40 billion euros in gross terms during the last five years. In 2011, FDI on a gross basis reached a total amount of 39.6 billion euros, representing an increase of around 20% when compared with the results of five years earlier, and of more than 80% when compared with 10 years ago. In net terms, after not so favorable results in 2009 and 2010, FDI amounted to 7.4 billion euros in 2011, indicating an increase of 272.5% compared with the year before. At the end of 2011, the stock of FDI outstanding reached 84.3 billion, a level that was 0.8% higher than total accumulated FDI as of December 2010.
Investment flows increased among all economic groups: developed countries, developing countries and transition countries. The latter two accounted for about half of all global flows and received US$755 billion, a record amount, associated with greenfield investments.
The countries of the South, East and Southeast Asia (increase of 11%) relinquished their top spot to the countries of Latin America and the Caribbean (up 35%) and by the transition countries (31%). On the other hand, Africa, where the largest number of lesser developed countries are located, continued to lose ground.
11.1.1 Main investors by country

The EU accounts for most of the foreign capital invested
In Portugal, in terms of investment amounts outstanding, Spain and Germany are the most important investors, the former in the financial area and the latter in the industrial sector, especially the automotive industry, components, machinery and equipment. In the past few years there has been an effort to diversify sources of investment, as in the case of Angola (Sonangol), Brazil (Embraer) and the United States (Cisco and Microsoft); countries that already have important Portuguese investments.
in Portugal with 90.6% of total gross FDI in 2011, representing an increase of 2.2%. Third countries were responsible for 9.4% of total gross FDI which declined 17% from the year before.
Foreign Direct Investment Trends in Portugal

39,622 35,287 32,634 32,018 39,626
Even at the level of preferred sectors there have been changes in investment flows. Industries such as electricity and electronics, machinery and equipment, chemicals, and automotive components sectors have shown less capacity to attract foreign investment, as compared with areas like energy, services in general and especially ITC and R&D. With these new options, changes arise as to structure and impact: these are smaller scale projects that generate few new jobs.
46 UNCTAD estimates - Global Investment Trends Monitor, N 8, 24 January 2012
7,441 2,238
2007
3,185
2008
1,948
2009
1,998
2010 2011
Gross Investment
Source: Banco de Portugal, February 2012 Unit: Millions of euros
Net investment
62
aicep Portugal Global Portugal - Country Profile (April 2012) In recent years, the largest investors in Portugal were Germany, Spain, France, Luxembourg, the Netherlands, the United Kingdom, and Switzerland with their rankings varying among them from one year to another.
1.0% 1.9% 2.6% 5.7%
22.3%
Foreign Direct Investment in Portugal by Major Sectors 2011a

2011
0.9% 5.7%
1.3% 1.4% 2.3% 5.2%
2010
0.6% 5.8% 38.2%
In 2011, the top five investors (Netherlands, Spain, France, the United Kingdom, and Germany) together accounted for 80.5% of total FDI in gross terms.
Besides the EU countries, other important FDI providers were Switzerland (6.2%) and the United States, ranking sixth and tenth, respectively.
23.0%
21.0% 38.9%
22.3%
Foreign Direct Investment in Portugal by Country of Origin - 2011a

2011
1.5% 2.7% 4.1% 6.2% 1.3% 3.7% 22.5%
2.6% 4.6% 4.8% 9.5% 10.9% 16.1% 12.5% 14.4%
Wholesale and retail trade Financial and insurance activities Manufacturing Information and communication activities
Consultancy, scientific and technical activities Electricity, gas, water Construction Real estate operations Others
2010
2.3% 5.5% 16.8%
Source: Banco de Portugal, February 2012;
Note: (a) Gross investment
11.1.3 Recent foreign direct investment projects in Portugal

In the last few years, the most attractive sectors for foreign
10.1%
13.8% 16.4%
Netherlands Spain France U. Kingdom Germany
17.7%
investors were the following: automotive and components, energy, biotechnology, electricity and electronics, chemicals,
Brazil Cyprus Others
Switzerland Belgium Luxembourg Ireland USA
information and communications technology (ICT), and the tourism sector.
Concerning the most recent projects undertaken by foreign investors, among the ones that had the greatest impact on
Note: (a) Gross Investment
the Portuguese economy were the following: The Palmela plant of Auto-Europa retains its leading role
11.1.2 Foreign direct investment by major sectors

The breakdown of FDI by sectors shows that wholesale and retail trade was the sector that benefitted the most from foreign capital inflows (38.9% of the total), followed by financial services and insurance (22.3%) and manufacturing (21%); together they represented more than 80% of total gross FDI received during this period. 63
in the domestic automotive market. (Its impact on GDP in 2011 was estimated to be 1.4%.) The introduction of the Sharan model in the Chinese market and higher orders received from Volkswagen led to an increase in vehicle production in 2011 from 101,284 to 133,100 units and the hiring of 396 additional workers.
Another project with a major impact on a local economy that also bears a strong technological components is that
aicep Portugal Global Portugal - Country Profile (April 2012) of Embraer, the third largest producer of airplanes in the world and global leader in the production of commercial jets of up to 120 seats, with an investment of about 148 million euros for the construction in Portugal of two factories (manufacturing of metal structures and composite materials) over a period of six years that are expected to generate about 450 direct jobs in the city of vora (Alentejo). Construction has already started and it is expected that the first parts will be produced in 2012 and reach cruising speed in 2013. Iberdrola, one of the four largest companies in the world operating in the energy sector, will build in Portugal the Alto Tmega Hydroelectric Complex, the largest hydro project in the last 25 years in the Iberian Peninsula. It involves the development over a period of 65 years of dams in Gouves, Alto Tmega and Daives and will The Renault plant in Cacia, Setbal, is due to receive an investment of 30 million euros between 2011 and 2013, primarily for the development of new products within the range of items already in production and that for the most part consist of gear boxes. The companys invoicing increased 10% in 2011 compared with the year before to reach 276 million euros. Portugal is the largest European center of operations for the North American multinational Cisco. With a global investment of more than 50 million euros, Cisco Systems already installed in Portugal five operations centers: Hrcules, Liberty, Inside Sale Super Center, the Recruitment Center and more recently, and a new sales support operations center in its complex located in Oeiras. contribute to the hydroelectric development of the Bacia do Douro and provide the creation of 3,500 new jobs directly and another 10,000 indirectly. is a four megawatt photovoltaic plant in Pinhal Novo. In this plant, in an area of about eight hectares, 18,000 polycrystaline panels will be installed which will supply energy to 2,400 households and is expected to go into operation in September 2012.
COFICABs Portuguese unit based in Guarda is a multinational specialized in lines and cables for the automotive trade, that is developing a new technology for electric cars as part of an investment valued at six million euros. This investment will extend throughout 2012 and its purpose is to develop cable products for electric cars. Coficab has more than 50% of the market share in Europe, holding a contract with direct supplier status on a global basis. It is the principal supplier to the most renowned brands in the auto sector such as Audi, Ferrari, Opel, Skoda, Volvo, Mercedes, Kia, Hyundai and SEAT. The Spanish petroleum company REPSOL will strengthen its position in the Portuguese market in the next few years by investing 75.5 million euros for exploration and production of natural gas in a new area. The company also will invest about 20 million euros in 2012 for distribution network maintenance that involves more than 400 positions.
The Chinese multinational Huawei, a world leader in supplying information and communication technology, inaugurated a Technology Support Center to assist projects already developed in Portugal. Situated in the Park of Nations (Parque das Naes ) in Lisbon, the new center involved an investment of 10 million euros, to be added to the 40 million already invested by this company in our country. The center concludes an important stage in the companys growth strategy in Portugal, strengthening its local competency and improving the companys position in the national market.
The IKEA Group will continue to invest in a major way in the Portuguese market with a multi-phased project that will extend to 2015, planning to invest more than 660 million
The German multinational Donauer Solar Systems will invest about 10 million euros in a new unit in Portugal which 64
euros. The IKEA project in Portugal includes industrial units for the production of wood and wood products, whose
aicep Portugal Global Portugal - Country Profile (April 2012) production will be destined for export to Europe and the United States, the construction of new IKEA stores, in addition to those already existing in Alfragide, Matosinhos and Loures, and the opening of new shopping centers of the Inter IKEA Centre Group. Portuguese direct investment abroad (PFDI) in gross terms increased substantially during the decade of the 1990s reflecting a favorable global economic climate. The French group Leroy Merlin, specializing in do it yourself items, construction and garden decorations is planning to invest 150 million euros in Portugal up to 2013, opening up large scale stores at a rate of one per year. The companys strategy for Portugal envisages the creation of about 1,300 new positions. This resulted in greater participation by Portuguese companies in international markets. Until 2000, the increases in PFDI were significant, transforming Portugal into a net exporter of capital, which was a reversal of its long-standing position as investment recipient. In the five years under review, Portuguese direct investment abroad, in gross terms, ranged between 7.7 billion euros recorded in 2007 and 15.6 billion euros in 2011, the highest since 1996, and +59.3% compared with 2010. Vital Green, with Brazilian capital, will build a biotech complex estimated to cost 25 million euros, in the area of Soalheira (Fundo), consisting of laboratories and greenhouses where various flower and vegetable species will be cultivated starting in 2014, with the purpose of serving the energy and pharmaceutical markets, among others. In net terms, PFDI has followed an irregular pattern in the same five-year period. In 2011, it reached an amount of 9.1 billion euros, an increase of 260.7%, which represented an extraordinary recovery compared with 2010, a year in which there were several major disinvestments. At the end of 2011, the stock of PFDI had reached 52.6 billion euros, representing an increase of 5.3% compared In the tourism sector, there was a recent investment of 82 million euros in the Martinhal Resort tourist complex in the Costa Vicentina (Algarve) by the developers Chitra and Roman Stern from Switzerland, the creators of the brands Luxury Family Hotels and Alias Hotels.
14,835 11,376 7,770 4,013 1,872 588 9,790 15,592
11.2 Trends in Portuguese foreign direct investment
At the present time, the company already has opened eight stores (three in the North, four in Lisbon and one in the Algarve (Albufeira).
with the total at the end of 2010.
Trends in Portuguese Foreign Direct Investment
Lastly, it is worth noting some examples of companies that found Portugal an attractive place to invest in shared services centers. These examples include Microsoft, Siemens, IBM, Fujitsu, Santander, and Solvay. This choice was due to several factors, among the most important were: availability of qualified workers with widespread knowledge of foreign languages in all the key cities of Portugal; highly skilled labor force in the areas of finance and information technologies; reasonable labor costs; cosmopolitan culture and leisure time activities; and a favorable climate (springtime weather all year round). 65
9,092
-5,658
2007 2008 2009 2010 Net Investment 2011
Gross Investment
Source: Banco de Portugal, February 2012 Unit: Millions of euros
11.2.1 Portuguese foreign direct investment by major recipients

In analyzing developments over the last five years we note that there is considerable diversification among the destinations for PFDI. While in 2004 there was a clear domination of three EU countries: Denmark, Netherlands and Spain, in the following years other countries gained in importance such as Brazil and some countries of Eastern Europe (Poland and Romania) and also the USA. More recently, investment in Angola and Mozambique has surged. Within this group, it is worth noting that in 2004 Angola accounted for 1% of total PFDI, but by 2011 it had a share of 4%, corresponding to an increase in value from 103 million euros to 246 million euros.
Portuguese Foreign Direct Investment by Sectors of Activity 2011a

2011
0.2% 2.2% 2.2% 3.5% 3.6% 4.6% 0.1% 1.4%
2010
0.5% 0.8% 4.7% 6.1% 6.6% 7.9% 0.5% 3.3%
69.7%
82.2%
Financial and insurance activities Manufacturing Electricity, gas, water Consultancy, scientific and technical activities Wholesale and retail trade Construction Real estate operations Information and communication activities Others
Portuguese Foreign Direct Investment by Major Recipients - 2011a

2011
0.9% 0.9% 0.9% 1.1% 1.2% 1.6% 3.6% 9.2% 0.5% 6.9%
21.7% 1.5% 1.6% 1.6% 2.6% 3.2% 6.8% 7.9% 14.9%
11.2.3 Recent projects indicating the internationalization of Portuguese companies

In the last two decades there was considerable internationalization of a large number of Portuguese companies which had a great deal of success in large foreign
17.2%
2010
21.0%
projects. This important step in the consolidation of a foreign presence in external markets, catapulted Portugal to a noteworthy position among capital exporting countries. This process of internationalization can be characterized
73.2%
Netherlands Spain Brazil Angola Poland USA Luxembourg Ireland U. Kingdom Mozambique Romania Others
as a sustained effort (particularly since Portugals accession to the EU) marked by the widening number of participants (large and medium sized companies) and by the progressive diversification of markets so that Portuguese firms are present in nearly every part of the world. Following a first phase when large companies dominated the process, small and medium sized industries have now acquired a leading role so that the Portuguese industrial profile has continued to adjust. This success also included greater geographic diversification of investments with the choice of new and more distant markets that were more challenging to enter. 66
11.2.2 Main sectors

The financial services and insurance sector accounts for most of the investment abroad by Portuguese companies. In 2011, this sector accounted for 80% of total gross PFDI. This was followed by manufacturing (4.6%); electricity, gas and water (3.6%) and consulting services (3.5%).
aicep Portugal Global Portugal - Country Profile (April 2012) Among the largest Portuguese companies, the following stand out: EDP Group, Cimpor Group, Galp Energia, Sonae Group, Amorim Group; banking in general; PT (Portuguese Telecom); the major construction companies operating in civil and public works (Mota Engil, Teixeira Duarte, Soares da Costa, etc.); Efacec Group; Pestana Group; Visabeira Group; Sogrape Group; Portucel/Soporcel; Iberomoldes; Simoldes; Martifer. Portuguese companies have chosen various sectors in which to base their internationalization strategy, but there are a few that because of their size, recognition, know-how and the impact of their investment in their chosen destinations, are worthy of note. These sectors include: real estate, civil and public works construction, telecommunications, cement, energy, and tourism. In the cement area, CIMPOR is present in various international markets: South Africa, Brazil, Cape Verde, China, Egypt, Spain, India, Morocco, Mozambique, Peru, Tunisia, and Turkey with cement factories, cement mills, ready mix concrete, explorations of aggregates and dry mortar. Despite the slowdown in the pace of economic growth in 2011, Brazil continued to be the main driver of growth in Cimpors portfolio, and there was a significant expansion in the volume and profitability of operatons in Mozambique. Costa (47th) which can be found among the 50 largest European construction firms in terms of business volume according to a study by Deloitte; and the volume of business conducted by these three companies in 2010 4.3 billion euros, compared with 3.8 billion in 2009.
In the telecommunications sector, Portugal Telecom (PT) takes on the role of the Portuguese company with the most national and international image and holds a diversified portfolio of investments in which quality and innovation constitute important elements, in line with the most advanced international companies in the sector. The companys activities include all segments of the telecommunications sector: fixed, mobile, multimedia, data, and business solutions. Its international presence extends to countries such as Cape Verde, Mozambique, Timor, Angola, Kenya, China, Brazil, So Tom and Principe and Namibia.
The most important developments involving the internationalization of Portuguese companies in the last few years have been primarily in the energy sector and in particular in the area of renewable energy, with the goal of not only acquiring a stake in the international energy market but primarily to increase the installed productive capacity of renewable, clean energy as exemplified by the activities of EDP Renovveis. This Portuguese company is the world leader in renewable energy sector and is the fourth largest producer of wind energy in the world. With headquarters in Portugal and offices in Spain (Madrid), the company operates in nine other countries: France, Belgium, Poland, Romania,
In the civil construction and public works area there are many successful cases of Portuguese companies which alone or integrated in consortia, have come to win important and diversified projects in their field, and where they have also diversified the markets in which they operate. Being almost impossible to enumerate all of the many Portuguese companies that have won international biddings in recent years, the better option is to avoid the risk of a selection that leaves out outstanding projects developed in important and difficult markets. However, it is important to stress two relevant facts that were previously mentioned: the presence of the three largest construction companies Mota Engil (30th position), Teixeira Duarte (37th) and Soares da 67
United Kingdom, Italy, the United States, Canada and Brazil.
Galp Energia intends to invest an average of 1.2 billion euros per year until 2016. In 2012 alone one billion euros will be invested primarily in exploration and production focusing on the key areas of the South Atlantic, Brazil, Angola and Eastern Africa, namely Mozambique. This company also will lead a project to produce second generation biofuels starting with Jatropha oil, cultivated in Mozambique, with an estimated value of two million euros.
The Portucel/Soporcel Group will invest 2.3 billion euros in Mozambique up to 2025 to build a factory to produce
aicep Portugal Global Portugal - Country Profile (April 2012) wood pulp, in accordance with the right to use and exploit land devoted to forestry in the province of Zambezia. The land was granted by the Mozambican government and the project will turn Mozambique into a major African producer of wood pulp. Praia and Sal), an investment estimated at 2.5 million euros and Grupo Enotel is planning to invest 250 million euros in new hotels in Brazil by 2015. In Brazil alone, the Portuguese tourism investment pipeline is in full expansion. In addition to the Pestana Group and Vila Gal, several other Portuguese companies are currently involved in projects: Espirito Santo In the agri-food industry there are many Portuguese companies pursuing investment projects abroad, a major one being Sumol+Compal which purchased an industrial unit in Mozambique, an investment budgeted at eight million euros, that will assure local production of brand-name products; Central de Cervejas which will start up a plant in the capital city of Angola in 2014, and finally Hipogest which will invest 38 million euros in a cold storage facility network in five locations scattered throughout Angola. The Pestana Group, one of the major players on the Portuguese tourism scene, and one of the top 100 hotel chains in the world, has a consolidated presence in nine countries: Brazil, Argentina, So Tom and Prncipe, Mozambique, South Africa, Cape Verde, Venezuela, the United Kingdom and Germany. For 2012-2013 there are new plans for investment in the United States (Miami), Uruguay The Nelson-Quintas Group is about to invest 20 billion euros in Brazil in a biotech unit located about 150km from Rio de Janeiro, which will produce two products derived from lactose for uses as input for organic yoghurt. This plant, which is due to begin operations towards the end of 2012, envisages the creation of 60 jobs, 40 of which will be for specialized engineers. Besides the previously mentioned examples, there are also In the pharmaceutical industry Bial has a new integrated production and research plant located in the Biscay Technological Park (Parque Tecnolgico de Biscaia in Bilbao, Spain) that involved an investment of 12 million euros in infrastructure and an additional 28 million euros destined for the development of anti-allergy vaccines and diagnostic methods. Sonae Sierra opened its 11th shopping center in Brazil in the region of Minas Gerais, an investment of about 79 million euros, and has another two under construction, one in the State of Paran and the other in the State of Gois, which together represent an investment of about 167 million euros. In non-traditional industries or in high technology, there are key Portuguese companies in full expansion in foreign markets. These companies include WeDo Technologies (with offices located in Brazil, Australia, Chile, the United States, Many Portuguese companies have also gotten involved in tourism infrastructure and have invested in a number of countries. Recently, Grupo Osis Atlntico is competing for construction of two casinos in Cape Verde (in the cities of 68 Egypt, France, Ireland, Malaysia, Mexico, Panama, Poland, Spain, Singapore, and the United Kingdom), Primavera Software (offices in Spain, Brazil, Angola, Mozambique, Cape Verde, and Guinea-Bissau), Mobicomp (a subsidiary of noteworthy successful investments in foreign ventures by small and medium sized Portuguese companies, such as Kyaia (Fly London), Silva & Fontela (Pablo Fuster); Armando Silva (Gino Bianchi and Yucca) and Calzeus (Swear) (footwear); Cin and Euronavy (paints); Sumol-Compal (food industry); Impetus (Throttleman); Lanidor; Dielmar; Diniz & Cruz (clothing); Coelima and Lameirinho (home textiles); Renova (paper for household use); Parfois and Lune Bleu (fashion accessories); Dot One (marketing and advertising). The Vila Gal Group, which is yet another major national hotel group and one that ranks among the worlds top 250 hotel chains, has 17 units in Portugal and six in Brazil for a total of 11,918 rooms. (Montevideo), Morocco (Casablanca) and Angola (Luanda). Group, Dorisol, Osis Atlntico, Joo Vaz Guedes, Reta Atlntico among others.
aicep Portugal Global Portugal - Country Profile (April 2012) Microsoft), Critical Software (offices in the United States, the United Kingdom, Romania, Mozambique and Brazil), Altitute Software (offices in more than 15 countries), and Alert Life Sciences Computing dedicated to the development, distribution and implementation of health-related software ALERT, conceived to create clinical environments without paper, a system that is already in use in hospital units in different countries around the world.
12. Tourism
According to the World Tourism Organization (UNWTO), tourist arrivals increased 4.4% in 2011 to reach 980 million tourists in a year that experienced moderate economic growth globally, major political upheavels in the Middle East and North Africa and natural disasters in Japan. Additional growth is anticipated for 2012, although at a slower pace, without calling into question the goal of reaching one billion tourists this year. Portuguese economy, equal to 5.3% of domestic GDP. In the same year, it created employment for 867,000, corresponding to 6.6% of total direct employment. Forcasts for 2012 indicate tourism is likely to maintain its share of GDP and employment and directly account for 17.1% of By regions, Europe registered the best performance (+6%), although by sub-regions South America achieved top ranking (+10%). Contrary to what transpired in previous years, the developed countries grew faster (+5%) than the emerging nations (+3.8%), primarily due to Europes good results and the setback in the Middle East and North Africa. Given that the tourism sector is responsible for 5% of global GDP, 6% of total exports and employs one out of 12 workers in both advanced and emerging countries, the results achieved in 2011 are encouraging, especially in view of the urgent need to stimulate economic growth and create employment. As far as receipts are concerned, WTTC47 estimates indicate a 3.8% growth, which is an increase similar to the results attained by tourist arrivals. The largest increases occurred in the United States (+12%), Spain (+9%), Hong Kong (+25%) and the United Kingdom (+7%). According to the same source, in 2011 the tourism sector probably directly contributed 12.7 billion euros to the
47 WTTC World Travel and Tourism Council
receipts and 13.2% of total investment.
In addition to making a positive contribution to the balance of payments, this sector is one of the most important in the entire Portuguese economy. The direct and indirect contribution to GDP of this sector is likely to be more than 15%. Tourism has strategic importance due to the revenues that are generated, for the employment it creates, for the multiplier effect that it has in various areas, and for the positive contribution it makes in enhancing Portugals image abroad.
Portugal offers the incoming visitor many comparative advantages at various levels: climate, safety, coastal proximity, quality beaches, golf courses that are recognized internationally for their quality, diversified attractions (beautiful countryside, casinos, marinas, culture, tradition, gastronomy) and excellent air connections via commercial, charter and low-cost airlines. There are numerous sites to visit in Portugal, and not to be forgotten are those sites that feature on UNESCOs World 69
aicep Portugal Global Portugal - Country Profile (April 2012) Heritage list which include the historical centers of Oporto, Angra do Herosmo, Guimares, vora and Sintra, as well as monuments in Lisbon, Alcobaa, Batalha, and Tomar, the Paleolithic etchings of Foz Ca, the laurissilva forest on the Island of Madeira, and the grape growing areas and vineyards of the Douro River and the Island of Pico in the Azores archipelago. In addition to the Azores scoring second in a selection of 111 islands or archipelagos in an initiative of National Geographic Traveler, the island of Pico being classified by the magazine Islands as being the fourth best island in the world, and Madeira appearing as the sixth among the 10 best European islands named by Cond Nast Traveller, also the city of Oporto was chosen among 20 jury-preselected cities as the Best Destination Europe 2012 by internet users of the site European Destination, and Lisbon came in eighth place after having won in 2010. Also, the Albufeira beach (Algarve) ranked sixth out of 10 best destination European beaches according to readers of TripAdviser. Albufeira is the sole Portuguese destination in the ranking, which is headed by Oludeniz and Imeler in Turkey and Puerto Alcudia in Mallorca, Spain. Towards the end of 2011, the Portuguese Fado was recognized by UNESCO as part of the World Intangible Cultural Heritage, thus becoming part of the list representing the intangible cultural heritage of humanity.
2007 2008 2009 2010 2011P
Unit: thousands Notes: (a) Persons staying in a lodging establishment for a period falling within 12 hours of one day and 12 hours of the following day; (b) Includes hotel nights spent in estalagens (manor houses), hotels, apartment hotels, motels, pensions, and pousadas; P Provisional data
Trends in Incoming Tourism - Hotel Nights a b

26,769 26,204 23,214 23,608 26,063
2007
2008
2009
2010
2011P
Source: INE Instituto Nacional de Estatstica
Trends in Incoming Tourism - Receipts
7,402
7,440
7,601 6,908
8,146
According to statistics compiled by INE, the number of tourist nights spent at hotels in Portugal reached 26.1 million in 2011, an increase of 10.4%. Among top five tourist providing countries, visitors from the United Kingdom (+14.2%) and France (+19%) increased the most while the Nordic countries contributed the least to the number of hotel nights (Denmark and Finland showed declines of 17% and 3% respectively). Tourism receipts, at 8.1 billion euros in 2011, increased very much in line with the results recorded for hotel nights, that is, more than 7.2% more than the year before. Most tourists who visit Portugal come from Europe, primarily from the European Union, with Brazil and the United States being the only exceptions in the group comprising the largest 10 market providers of visitors to Portugal. 70
Source: Banco de Portugal Unit: millions of euros Note: (P) - Provisional data
In 2011, the breakdown of hotel nights spent in Portugal by foreigners shows that the United Kingdom is the largest country of origin with 24.1% of total, followed by Spain (13.3%); Germany (13.0%), the Netherlands (7.7%), and France (7.4%). The Algarve, Lisbon and Madeira were the regions that accounted for most of the hotel nights spent in Portugal by foreigners: 82.6% of the total. The Algarve registered 10.2 million hotel nights (+8.8% compared with 2010), Lisbon 6.5 million (+7.6%) and Madeira 4.8 million hotel nights (+17%).
Hotel Nights Spent by Foreigners by Country of Origin (%)
U. Kingdom 2009
Spain
Germany 2010
Netherlands
France 2011P
Brazil
Italy
Ireland
USA
Belgium
Source: INE Instituto Nacional de Estatstica Note: (P) - Provisional data
13. International and Regional Relations

Portugal today is a member of a large number of international financial organizations of which the most important are the multilateral development banks given the objectives that guide them, the size of their loans and consequent impact on beneficiaries, and for the power that some of them have acquired in the international context. These organizations led to the formation of other entities with different purposes and different degrees of autonomy. The first group and therefore the oldest group is the World Bank (WB) group which comprises five organizations48 , including one non-financial entity that served as a model for the other groups that were established subsequently such as the Inter-American Development Bank (IDB), the African Development Bank (AfDB) and the Asian Development Bank (ADB). Portugal joined the Bretton Woods Organizations International Monetary Fund (IMF) and International Bank
48 International Bank for Reconstruction and Development (IBRD); International
for Reconstruction and Development (IBRD) in 1960, followed by other global and regional organizations49 the last of which were in 2002, the Asian Development Bank (ADB) and its Asian Development Fund (ADF) and the Inter-American Investment Corporation (IIC) of the IDB. In the special case of the European Investment Bank (EIB), Portugals membership came automatically with its entry into the European Economic Community (EEC), given that the EIB statutes constitute an annex to the Treaty of Rome. Portugal is also a member of Organization for Economic Cooperation and Development (OECD), the United Nations (UN) and its specialized agencies, the World Trade Organization (WTO) since 1995 and the World Tourism Organization (UN WTO) since 1976. In several multilateral financial organizations of which it is a member, Portugal plays a dual role as a Member State donor and beneficiary. It is in the case of the World Bank that Portugal obtains its greatest return on investment, but it is in the IDB Inter-American Development Bank that
49 International Finance Corporation (IFC WB Group), Multilateral Investment
Guarantee Agency (MIGA WB Group), International Development Association (IDA WB Group), Inter-American Development Bank (IDB), Fund for Special Operations (FSO IDB Group), Multilateral Investment Fund (MIF IDB Group), African Development Bank (AfDB), African Development Fund (AfDF AfDB Group), European Bank for Reconstruction and Development (EBRD). Development Agency (IDA); International Finance Corporation (IFC); Multilateral Investment Guarantee Agency (MIGA); International Centre for Settlement of Investment Disputes (ICSID).
71
aicep Portugal Global Portugal - Country Profile (April 2012) it sees the biggest ratio between donation and return, in large measure because of its reduced financial participation. At the regional level, Portugal has been a member of the European Union since 1 January 1986 and is part of the Council of Europe, the Western European Union (WEO) and the European Space Agency (ESA). Presently, the EU includes 27 members, but only 1750 , including Portugal, have adopted the common European currency, and thus are members of the Euro Area and comprise the European Economic and Monetary Union. of rules relating to transport, insurance, quality, and product technical specifications. Such rules exist, and in general, are already imposed through existing harmonized community legislation with the purpose of protecting the health and safety of consumers. The circulation of merchandise within the European Union must be accompanied by all documentation usually required by the national authorities and these include: transport documents; commercial invoice; and certificates of compliance as to quality, sanitary and phytosanitary measures. The inspection can occur at any time and place,
14. Legal Requirements for Market Access

Portugals trade relations, and those of the other Member States of the EU, unfold at two levels: those that take place within the EU and thus are intra-community exchanges, and those that occur with third countries and are ruled by the EUs Common Trade Policy.
from the point that the goods were shipped up to the point of final consumption. In addition, there are a complex of intra-community transactions52 (threshold values defined by INE) that require companies to declare the respective value or amounts of goods (Intrastat Declaration).
14.2 General import procedures

The Customs Union implies, besides the existence of a
14.1 Intra-EU exchange procedures

Goods that originate within the European Union or are in free circulation51 in community territory (http://europa. eu/legislation_summaries/internal_market/single_market_ for_goods/free_movement_goods_general_framework/ index_pt.htm), are exempt from customs control, without prejudice, however, from any taxation regarding quality and technical characteristics.
common customs union territory, the adoption of common legislation in this domain Community Customs Code (http://europa.eu/legislation_summaries/other/l11010_ pt.htm) and the application of common custom duties to products coming from third countries the Common External Tariff (CET)53. However, the Community grants customs advantages to goods originating from developing countries (those that are beneficiaries of the System of Generalized Preferences SGP, or to countries with which the EU has preferential agreements) which result in the application of more favourable customs duties (or even exemption) compared with those adopted by the WTO, with the exception of products deemed sensitive in terms of community interests.
In this manner, community economic operators can buy and sell freely, at any point within community space, without having to comply with any formalities at the time when goods pass across an internal frontier. The absence of customs controls does not imply, however, the elimination
50 Euro Area 17 Germany, Austria, Belgium, Cyprus, Slovakia (2009), Slovenia (2007),
If the importer intends to benefit from these procedures he is obliged to present proof regarding the origin of the
52 53 Available at http://www.ine.pt The CET is based on the Harmonized System for Designation and Codification of
Spain, Estonia (2011), Finland, France, Greece, Ireland, Italy, Luxembourg, Malta (2008), Netherlands and Portugal 51 Goods in free circulation are those which have already complied with import
formalities (including payment of customs duties and other taxes that may be due) in one Member State, so that they can circulate freely throughout European Community territory without needing to comply with any additional formalities.
Merchandise, with most import duties being ad valorem, calculated on the CIF value of merchandise.
72
aicep Portugal Global Portugal - Country Profile (April 2012) goods in question. In the case of imports originating from countries benefiting from the SGP procedures, he needs the Certificate of Origin FORM A, for imports from other countries, the Trade Certificate of Circulation EUR 1.
The aforementioned certificates can be obtained from the Tax and Customs Authority54, the relevant agency that gives information relating to the classification of products, from the duties that apply to merchandise imports regardless of origin, to information relating to existing customs procedures.
Besides customs duties, imported products are subject to payment of the value added tax (VAT) (http://info. portaldasfinancas.gov.pt/pt/apoio_contribuinte/guia_fiscal/ iva/), which in Portugal is applied at a rate of 23%, although some products benefit from a 13% tax rate and others from a reduced rate of 6%. In the Autonomous Regions of Madeira and the Azores, the rates are lower: in Madeira, beginning April 1, 2012 the normal rate became 22%, the intermediate rate 12% and the reduced rate 5%; in the Azores the normal rate is 16%, the intermediate rate 9% and the reduced rate 4%. a customs, fiscal, financial, and economic nature. More information can be obtained by consulting the Madeira International Business Center (Centro Internacional de Negocios da Madeira): http://www.ibc-madeira.com/home. aspx?ID=615
Finally, there exists a Free Trade Zone in Madeira, legally intended as a territorial enclave in which the existing merchandise is, as a rule, considered foreign to the customs territory for the purpose of applying customs duties, quantitative restrictions or measures with a similar intent. Since they are duly authorized, all kinds of activities of an industrial, commercial or financial nature can take place in the duty-free zone, although the first two are confined to a circumscribed area (since physical movement of merchandise is involved), a situation that does not apply in so far as the so-called offshore services are concerned which can function at any location within the archipelagos territory, including the city of Funchal. The companies that operate in the Duty Free Zone of Madeira have access to a significant array of benefits of
54 Link: http://www.dgaiec.min-financas.pt/pt/legislacao_aduaneira/dacac_anexos_
More detailed information relating to the different aspects of customs procedures in the community space, as well as the necessary import documents can be found in Annex 1.
Merchandise originating from the community or from third countries and brought into any Member State, must comply with the technical demands established by community legislation and must be accompanied by all required documentation demanded for its commercialization, namely certificates relating to conformity, quality, sanitary, veterinary, and phytosanitary regulations.
For the purposes of protecting consumer health and safety, the Community has attempted to harmonize (http://europa.eu/legislation_summaries/consumers/ product_labelling_and_packaging/index_pt.htm) rules relating to labeling, presentation and advertising of various products, such as food, toys, etc., to minimize obstacles to 73
doclib/default.htm
aicep Portugal Global Portugal - Country Profile (April 2012) the free circulation of goods within community territory. In Portugal the Food and Economic Security Authority (ASAE Autoridade de Segurana Alimentar e Econmica) (http://www.asae.pt/) is the national administrative authority specialized in securing food safety and for conducting inspections. In this manner, it is responsible for detecting and communicating any risks in the food chain as well as exercising oversight of economic activity in the food and non-food sector, through the inspection and protection of compliance with applicable regulatory legislation. Member States can, however, take justified measures for the purpose of preventing infractions to their own legislation, namely in fiscal matters and in the supervision of their own financial institutions. The community countries can also adopt procedures for declaring capital movements for administrative, informational or statistical purposes, and they can take other measures that may be justified by reasons of public order or public safety. However, all these measures and procedures must not constitute an arbitrary means to discriminate, nor be intended as simulated restrictions to the free movement of capital and payment flows.
14.3 Foreign investment procedures

The European Union Treaty establishes the free movement of capital, and provides for a general framework governing foreign investment applicable in community territory, defines the limits resulting from the principle of subsidiarity, that is, without prejudice to the governing legislation of any Member State. Within the scope of the free movement of capital, all restrictions on capital movements investments are prohibited, as are all restrictions on payments whether it is a payment for merchandise or for a service.
The foreign investor is granted the same treatment accorded to national investors, and since there exist no restrictions affecting the private sector, companies can be completely controlled by foreign capital.
As concerns the structure of setting up a business, the choice depends on the investors objectives and also on the degree of autonomy that the investor desires in relation to its headquarters in its home country.
More detailed information on this matter, especially regarding the various judicial forms relating to companies, can be found at Portal da Empresa (Starting a Business Portal) (http://www.portaldaempresa.pt/cve/pt), where information is available and there are services to assist investors in facilitating the process of setting up, changing or terminating a company and related actions. In Portugal, in order to bring up to date the Portuguese legal framework to the very latest requirements of the European Union and the OECD, a Single Contractual Procedures (Regime Contratual nico55) was adopted that is governed by Decree Law n 203/2003 of 10 September (free access at the web site address (http://www.dre.pt/).
55
Regime Contratual nico applies to large scale investment projects, whether they
are of national origin or foreign origin, which represent a value exceeding 25 million euros that is to be invested all at once or phased in over a period of three years, or that in the case of investments under this amount, that it be an initiative of a company whose annual consolidated turnover is over 75 million euros, or for an entity that is not a business enterprise but whose annual budget is over 40 million euros, independently from the sector of activity or the nationality of the investor.
74
aicep Portugal Global Portugal - Country Profile (April 2012) This move revoked the requirement to register a company a posteriori, or after setting up an investment in Portugal, and thus ending the differential treatment of foreign versus national investors. Nacional QREN 2007-2013), which covers economic, social and territorial development policies in Portugal made possible through the structural and cohesion funds of the European Unions cohesion policy, may consult the web site (http://www.qren.pt/). A foreign promoter can also see his investment projects recognized as PIN projects Projects of Potential National Interest (Projectos de Potencial Interesse Nacional) or PIN+ (Projectos de Potencial Interesse Nacional classified as being of strategic importance), if the business concerned is established through an intermediary of a branch established in Portugal and complies with the requirements foreseen by the following legislation:
- PIN Decree-Law n 174/2008 of 26 August, Decision n 30850/2008 of 28 November and Decree-Law n 76/2011 of 20 June. - PIN+ - Decree-Law n 285/2007 of 17 August.
Those who are interested can obtain further information by accessing the following link that can be found on the site of aicep Portugal Global: http://www.portugalglobal.pt/PT/InvestirPortugal/ InstrumentosRelevantes/pin/Paginas/PINPIN.aspx
The entity aicep Portugal Global (http://www. portugalglobal.pt/ ) is the relevant government agency offering guidance to accompany major investment projects (sole interlocutor) including assistance in reception, analysis, negotiation, and contract process; while small and mediumsized companies are handled by IAPMEI Instituto de Apoio s Pequenas e Mdias Empresas e Inovao, or Institute for the Assistance of Small and Medium Sized Companies and for Innovation, (http://www.iapmei.pt/) which deals with investments under 25 million euros, except for those in the tourism sector.
Those who may be interested in the regulations relating to incentives offered by the Portuguese Government under the aegis of the new 2007-2013 National Strategic Reference Framework (Quadro de Referncia Estratgico 75
ANNEXES
Annex 1 Custom Procedures
The Community Customs Code harmonized and simplified administrative formalities affecting the movement of goods between Member States and third countries, enabling the adoption of different types of customs procedures:
subsequent working on this merchandise in a third country and to introduce under free circulation the products resulting from these operations and benefiting from total or partial exemption of import duties.
Transformation under Customs Control implies the use in customs territory of merchandise originating from third countries, there to undergo transformation that modifies its nature or its condition
Free Circulation introduction of a product
without being subject to import duties or trade policy measures, and the respective introduction into free circulation of the resulting transformed products after the payment of respective charges. These products are considered manufactured products.
originating in a third country into European Union territory conferring on it customs statute of community merchandise, after completing import formalities (including payment of customs duties and other taxes, if due), so that these goods can move freely within EU space.
Temporary Imports temporary admission of non-community products destined for subsequent re-
Customs Warehousing allows for warehousing, among others, of non community merchandise, without these goods being subject to import duties or to trade policy measures.
export, with suspension of customs duty payments and other charges, for a determined period of time, without undergoing any modification other than normal depreciation resulting from the use to which the goods may have been subjected to. Portugal is a signatory to
Inward Processing presupposes the transformation of non-community merchandise and goods introduced under Free Circulation, allowing for the adoption of two systems: Suspension System use of non-community merchandise destined for subsequent re-export under the form of compensating products (final product resulting from finishing operations performed), without the imposition of customs duties. Drawback System transformation of goods introduced under free circulation, with reimbursement or exemption of import duty payments or other taxes, in cases where the goods are exported under the form of compensatory products.
the Convention that established the ATA Carnet under which commercial samples, as well as professional materials and equipment destined for trade fairs and commercial exhibitions, shows, exhibits, and the like, are admitted. (http://www.acl.org.pt/pt-pt/services/ carnetata.aspx).
Outward Processing allows for the temporary export of community merchandise in order to permit 76
Annex 2 Import Documentation

Documents fulfill a fundamental role in whatever commercial transaction, but they are substantially different depending on whether one is dealing with the import/ export of merchandise (trade with non-European Union countries), or with the purchase/sale of goods (trade between Member States of the European Union). In the case of non-EU exchanges of goods what is important are the licenses (where products are subject to restrictions), the declarations (for merchandise subject to statistical vigilance) and to certificates (always if required by law, as is the case with a large part of agricultural products), or a single administrative document, the commercial invoice and the certificate of origin.
to licensing or as a business proposal, or even for temporary imports of goods. When it is required it is usually presented in duplicate.
Bill of Lading the elements contained in this
document must be in agreement with those appearing on the Commercial Invoice.
Packaging List although not obligatory, it eases
the customs disembarkation of merchandise when goods originate in third countries.
Certificate of Origin this is the document that
indicates the origin of the merchandise. Its presentation is required in the case of imports of merchandise subject to preferential guidelines, originating from countries
Concerning the documentation needed to accompany the intra-community purchases or sales of goods, one needs the commercial invoice, certificates of different types (in conformity with the type of goods) and the Intrastat Declaration.
with which the EU has preferential agreements (EUR 1) or from countries benefiting from the System of Generalized Preferences (FORM A). The importer also can solicit this certificate for reasons that have nothing to do with the application of customs preferences when certification is demanded by a Chamber of Commerce of the country of the origin of the goods.
Import operations (similar to those regarding export operations) must be completed with the assistance of a Forwarding Agent familiar with the documentation involved.
Single Administrative Document a document
used throughout the entire community territory to fulfill customs formalities of both imports and exports.
Some examples: Trade Invoice this is the basic document of any
Other Documents in cases where national,
community or specific regulations exist for the protection of health and public safety, the defense of consumers and the environment, certain imports into the Community of an ever increasing number of goods are subject to the presentation of various certification, according to the products in question as, for example, health, phytosanitary, quality, and conformity certificates, among others.
commercial transaction whose issue is per regulation obligatory; it is delivered by the vendor to the buyer, dated and numbered, and issued in the language of the buyer. It also has to include the following information: name, address and taxpayer number of the exporter/ expediter and of the importer/purchaser; a detailed description of the merchandise; the tariff code; the unit price; the total price; and the applicable VAT rate.
Pro-Forma Invoice this invoice can be solicited
by the importer for merchandise that is subject 77
Annex 3 - Useful Internet Addresses

INE Instituto Nacional de Estatstica www.ine.pt (National Statistics Institute) GEE Gabinete de Estratgia e Estudos www.gee.min-economia.pt (Ministry of Finance, Research Department) GPEARI Gabinete de Planeamento, Estratgia, Avaliao e Relaes Internacionais - http://www.gpeari.min-financas.pt (Department of Planning, Strategy, Valuation and External Relations) Dirio da Repblica www.dre.pt (Official Journal of the Government) Portal do Governo Portugus www.portugal.gov.pt (Portuguese Government Portal) Ministrio da Economia e do Emprego - http://www.portugal.gov.pt/pt/os-ministerios/ministerio-da-economia-e-do-emprego. aspx (Ministry of Economy and Employment) Ministrio das Finanas - http://www.portugal.gov.pt/pt/os-ministerios/ministerio-das-financas.aspx (Ministry of Finance) Portal da Empresa http://www.portaldaempresa.pt/cve/pt (Starting a Business Portal) Autoridade Tributria e Aduaneira - https://www.e-financas.gov.pt/de/jsp-dgaiec/main.jsp (Customs Office) Cmara Portuguesa dos Despachantes Oficiais www.cdo.pt (Portuguese Chamber of Official Shipping Agents) Associao dos Transitrios de Portugal http://www.apat.pt/ (Portuguese Forwarders Association) ASAE Autoridade de Segurana Alimentar e Econmica - www.asae.pt (Food and Economic Security Authority) IPQ - Instituto Portugus da Qualidade www.ipq.pt (Portuguese Institute for Quality) CERTIF Associao para a Certificao de Produtos www.certif.pt (Association for Product Certification) Portal do Cidado www.portaldocidadao.pt (The Citizens Portal) Associao Nacional de Municpios www.anmp.pt (National Association of Cities and Towns) AEP Associao Empresarial de Portugal www.aeportugal.pt (Portuguese Businessmens Association) AIP Associao Industrial Portuguesa www.aip.pt (Portuguese Industrial Association) APB Associao Portuguesa de Bancos www.apb.pt (Portuguese Banking Association) APDC Associao Portuguesa para o desenvolvimento das Comunicaes www.apdc.pt (Portuguese Association for Communications Development) ANACOM Autoridade Nacional de Comunicaes www.anacom.pt (National Communications Authority) Turismo de Portugal, IP www.turismodeportugal.pt (National Tourism Authority) Portal Oficial do Turismo www.visitportugal.com (Official Tourism Portal)
78

Portugal - Country Profile (Aicep - 2012)

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Portugal - Country Profile

aicep Portugal Global Portugal - Country Profile (April 2012)

aicep Portugal Global Portugal - Country Profile (April 2012)

aicep Portugal Global Portugal - Country Profile (April 2012)

Rui Morais de Sousa

Pavilho de Portugal (Pavilion of Portugal) - Parque das Naes (Park of Nations)

aicep Portugal Global Portugal - Country Profile (April 2012)

3.  Geography and Socio-Economic Characteristics

3.2 Socio-economic indicators

aicep Portugal Global Portugal - Country Profile (April 2012)

Thousands Thousands Thousands % of GDP

262 1,493 367 6.6 2006

Millions N N 106 EUR

10.3 6,463 2,054 802.9 2006

36,924 200 36,605 378 3,037 5.6 2006

Main telephone lines

12,236 115 1,421 13.4 5.4

13,477 127 1,489 14.0 5.2

14,953 141 1,475 13.9 5.1

15,929 151 1,452 13.6 5.1

n.a. 155 1,438 13.5 5.0

aicep Portugal Global Portugal - Country Profile (April 2012)

4.  Political and Administrative Organization

4.2 Administrative organization

Regions (NUT II) determined by areas

% of total 34.3 30.6 23.1 5.4 3.2 2.5 0.9 100.0

aicep Portugal Global Portugal - Country Profile (April 2012)

Sub-Regions NUT III Regions of the Continent

aicep Portugal Global Portugal - Country Profile (April 2012)

5.1 Regional breakdown

Population of Portugal - 2006-2011 Trends

2006 10,585.9 1,640.4 7,115.8 1,829.7 93.8 0.22

2007 10,604.4 1,634.9 7,135.0 1,834.6 93.8 0.17

2008 10,622.7 1,624.6 7,145.1 1,853.0 93.8 0.17

2009 10,638.4 1,615.0 7,142.6 1,880.7 93.8 0.15

2010 10,635.8 1,614.4 7,113.7 1,907.7 93.8 -0.02

2011 10,646.7 1,609.5 7,096.6 1,940.6 93.8 0.10

6,795.2 -0.78 1,249.3 2.81 901.0 6.16

6,796.5 0.02 1,245.5 -0.30 927.6 2.95

6,776.8 -0.29 1,250.9 0.43 970.4 4.61

6,690.4 -1.27 1,324.7 5.90 1,008.2 3.90

6,539.8 -2.25 1,416.6 6.94 1,065.0 5.63

6,311.2 -3-50 1,518.4 7.19 1,207.6 13.39

Regional breakdown Annual Average 2010

5.3 Active population

5.4  Schooling levels of the active population

Trends in population employed by sector of activity

Source: NE - Employment Statistics, 2011

The reference year for the academic data is 2009/2010

aicep Portugal Global Portugal - Country Profile (April 2012)

Gare do Oriente (East station) - Parque das Naes (Park of Nations)

Cmara Municipal de Sines

6.4 Air transport

Port of Sines - Alentejo

January 17, 2011

6.5 Technological infrastructures

Main Portuguese airports

6.6 Policies for the future

aicep Portugal Global Portugal - Country Profile (April 2012)

7. Resources and Productive Structure

Gross Value Added by Sectors of Economic Activity

Employment by Sectors of Economic Activity

3. Geography and Socio-Economic Characteristics

4. Political and Administrative Organization

5.4 Schooling levels of the active population