Portugals tourism sector is represented by Bernard Luis Amador Trindade who could easily be mistaken for a movie star,

but it is his Mediterranean charm, business intelligence, and political savvy that makes him the perfect representative for a country noted for its beauty, casual way of life, excellent cuisine, and history. Born in Lisbon, his current address is Funchal, the capital of Madeira Island. Coming from a hospitality, travel, and tourism family, Trindade has been associated with Banco Espirito Santo, the Regional Legislative Assembly of Madeira, and a leader in the Socialist Party since 2003. His move to tourism has been not so much as a step in a new direction, but rather an acknowledgement of his roots. Did You Know If you remember your 3rd and 4th grades history classes, you are likely to remember studying Portugal the birthplace of Vasco Da Gamma (15th century), the Portuguese explorer who discovered an ocean route from Portugal to the East, and commander of the first ships to sail from Europe to India. It is also the home of Ferdinand Magellan (15th century), the maritime explorer who attempted to circumnavigate the earth. Portuguese Baruch Spinoza is considered Europes first modern philosopher (17th century). Current Portuguese stars include Jose Saramago (Nobel laureate novelist), Nelly Furtado (Grammy Award-winning Canadian singer of Portuguese ancestry), and Jose Manuel Barroso, the 12th President of the European Commission. Marketing Objectives Tourism represents 6.5 percent of the countrys GDP, and companiesandmarkets.com determined that the Portuguese travel and tourism industry has been facing a tourism crises since 2009 (the global crisis began in 2008). The decrease in consumer purchasing power in Portugal and its most important tourist source markets, together with the consequent decline in demand levels, formed the basis for the slowdown. The major target markets for tourism have been Portugal, the United Kingdom, Spain, Germany, and France, while markets under development include Scandinavian countries, Italy, the United States, Japan, Brazil, the Netherlands, Ireland, and Belgium. According to Trindade, the focus of Portugal promotions will be on: city attractions, culture and geography, food and wine, health and wellness, MICE market, nature, nautical tourism, resorts, and sun/sand. The National Strategic Plan for Tourism indicates that Portugal is seeking an annual growth rate of 5 percent with 20 million tourist visits by 2015. The areas contributing to growth will be Lisboa, Algarve, and Porto e Norte. It is anticipated that by 2015, tourism will represent 15 percent of the GDP and 15 percent of national employment. In a March, 2009 report, the World Travel and Tourism Council (WTTC) placed Portuguese tourism in 10th position (in terms of size) in the European Union and 6th in tourisms relative contribution to the national economy. Cruising The cruise market is currently a good source of tourism-generated revenue for Portugal. Approximately 300 cruise ships visit Lisbon each year. Many travelers start and/or end their cruise in Portugal. In 2009, almost 90,000 visitors from the US visited Lisbon by ship surpassed only by the UK with 146,441. Cruise fans also come from the domestic market of Portugal (45,359), and the European Union including Italy (38,359), Germany (38,113), Spain (19, 277), and France (8,082). The industry is represented by Royal Caribbean, Holland America, Princess, Celebrity, and Crystal who populate the three conveniently-located cruise terminals. Investors

see a bright future for the cruise industry, having invested approximately US$10 billion in this sector. NEW DIRECTIONS Accessible Tourism A search for new markets has prompted the government and tourism officials from Algarve to develop the locale as a leading destination for tourists with disabilities and restricted mobility. The project includes adapting the regions infrastructure to accommodate the disabled and training professionals in customer service so they are able to meet and respond to the unique needs of this market segment. It is estimated that accessible tourism could represent millions of Euros to the tourism economic sector. Currently Algarve has 41 accessible beaches and most have amphibian wheelchairs and crutches available for visitors. New Links In 2009, the biggest spenders to Portugal were visitors from the United Kingdom, France, and Spain; however, there has been a decline in these markets. As the traditional European markets for tourism have declined, new links are being formed. Most recently, the Israel Tourism Minister, Stas Misezhnikov, signed a tourism agreement with Bernardo Trindade that encourages tourism to both countries and recognizes the importance of tourism to world peace and understanding. The programs will focus on health tourism and information exchange. The Jewish/Portuguese connection started in the 12th century when the Kingdom of Portugal was formed and a number of Jewish communities already existed. In 2004, China signed a tourism agreement signed with Portugal granting it Approved Destination Status (ADS). The link between Portugal and Macao dates back to the 16th century when Portuguese traders used Macao as a staging port, developed an official settlement, and then established the Portuguese municipal government. For the next 400 years, Macao was governed by Portugal. It was returned to the Peoples Republic of China in 1999. Challenges Crime, drugs, and rough roads means that there are clouds over the sunny Portugal beaches. Although reported offenses in Portugal remain at low levels, (compared to other developed countries), petty crime is visible and ranges from pickpockets and purse snatchers to auto breakins. An outgrowth of Portugal as a destination for several thousand immigrants from diverse locations (i.e., Ukraine, Moldova, Romania, and Brazil) has been reflected in increased group violence, as well as financial crime and corruption. To help victims of crime, Portugal has an assistance program administered through APAV (Associacao Portuguesa de Apoio a Vitima). Portugal has very liberal laws on drug possession, and since 2001, personal possession of marijuana, cocaine, heroin, and LSD are not considered criminal; however, trafficking and possession of more than 10-days worth for personal use is punishable by jail time and fines. Driving in Portugal requires considerable skill, as the country has one of the highest rates of automobile accidents and related fatalities in Europe. A combination of local driving habits, high speeds, and poorly-marked roads make driving a car risky business. Fines for traffic violations are substantial, and payment may be requested at the site of the incident. Temptation From bike riding through northern Portugal, traveling along the peaceful roads of Paredes de Coura, to experiencing the traditions of rural areas where it is not uncommon to encounter wooden wheeled oxcarts; from watching farmers working fields with handheld ploughs, to the

night life and shopping in Lisbon, Portugal is out to seduce new visitors to their Atlantic Ocean bordered country.

ALL ABOUT PORTUGAL

Parque das Naes - Lisbon financial center. Currency 1 Euro = 100 eurocent Fiscal year Calendar year Trade EU, WTO and OECD organisations Statistics GDP $247 billion PPP (2010 est.) GDP growth 1.4% (2010 est.) GDP per capita $23,000 (2010 est.) agriculture: 2.6%; industry: 23%; services: GDP by sector 74.5% (2010 est.) Inflation (CPI) 1.1% (2010 est.) Population below poverty 18% (2006) line Gini coefficient 38.5 (2007) Labour force 5.57 million (2010 est.) Labour force agriculture: 10%; industry: 30%; services: by occupation 60% (2007 est.) Unemployment 13 % (October 2011 est.)[1] Average gross 894 / 1,300 $, monthly (2010)[2] salary textiles, clothing, footwear, wood and cork, paper, chemicals, auto-parts manufacturing, base metals, dairy products, wine and other Main industries foods, porcelain and ceramics, glassware, technology, telecommunications; ship construction and refurbishment; tourism Ease of Doing 30th[3] Business Rank External Exports $46.27 billion (2010 est.) Export goods agricultural products, food products, oil products, chemical products, plastics and rubber, skins and leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, minerals and mineral

Main export partners Imports

Import goods

Main import partners FDI stock Gross external debt Public debt Revenues Expenses Economic aid

products, base metals, machinery and tools, vehicles and other transport material, optical and precision instruments Spain 26.25%, Germany 12.99%, France 12.04%, Angola 7.21%, United Kingdom 5.54% (2009) $68.22 billion (2010 est.) agricultural products, food products, oil products, chemical products, plastics and rubber, skins and leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, minerals and mineral products, base metals, machinery and tools, vehicles and other transport material, optical and precision instruments, computer accessories and parts, semi-conductors and related devices, household goods, passenger cars new and used, wine products Spain 31.58%, Germany 12.41%, France 8.58%, Italy 5.55%, Netherlands 5.31% (2009) $105.7 billion (31 December 2010 est.) $497.8 billion (30 June 2010) 210% of GDP Public finances 83.2% of GDP (2010 est.) $91.89 billion $106.8 billion (2009 est.) donor: ODA, $271 million (1995)

Standard & Poor's:[4] BBB- (Domestic) BBB- (Foreign) AAA (T&C Assessment) Outlook: Negative[5] Moody's:[5] Ba2 Outlook: Negative Fitch:[5] AOutlook: Negative / Rating Under Review

Credit rating

Foreign reserves US$22.931 billion (April 2011)[6] Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

The Economy of Portugal is a high income mixed economy. The Global Competitiveness Report 2008-2009 edition placed Portugal in the 43rd position out of 134 countries and territories.[7] Most imports come from the European Union countries of Spain, Germany, France, Italy, and the United Kingdom. Most exports also go to other European Union member states. The Portuguese currency is the euro () and the country's economy is in the Eurozone since its starting. Portugal's central bank is the Banco de Portugal, which is part of the European System of Central Banks. The major stock exchange is the Euronext Lisbon which is part of the NYSE Euronext, the first global stock exchange. Although its gradual modernization and relative expansion since the 1960s, the educational system remained underdeveloped until the 2000s when it finally reached the World's best practices and trends. However, the country has been increasingly overshadowed by lower-cost producers in Central Europe and Asia as a target for foreign direct investment.[8] These long-term problems have hindered much economic growth. The Financial Crisis of 2008 is still affecting the Portuguese economy severely, causing a wide range of domestic problems specifically related to the levels of public deficit in the economy, as well as the excessive debt levels. Nonetheless, the government faces tough choices in its attempts to stimulate the economy, while attempting to maintain its public deficit around the EU average. In April 2011, Portugal confirmed it will have a financial bail-out from the European Union worth 80bn ($115bn, 70bn), following Greece and the Republic of Ireland. It has been predicted that the Portuguese economy will not significantly recover until 2012.[9] The country is home to a number of noted leading companies with world reputation, like Grupo Portucel Soporcel, a major world player in the international paper market, Sonae Indstria, the largest producer of wood-based panels in the world, Corticeira Amorim, the world leader in cork production, and Conservas Ramirez, the oldest canned fish producer in continuous operation.

Contents
[hide]

1 History

1.1 Portuguese Colonial Empire 1.2 The military coup of 1974 1.3 EU membership 1.4 Portuguese Financial Crisis (2010-2011) 2.1 Wages 2.2 Graduate unemployment 3.1 Natural resources 3.2 Agriculture and fisheries 3.3 Industry

2 Employment and Wages

3 Economy by sector

3.4 Services

4 Financial market 5 Competitiveness

5.1 Portugal's competitiveness in the world 5.2 Competitiveness by city

6 Domestic problems 7 Education, training and research in business and economic sciences 8 References 9 External links

[edit] History
Main article: Economic history of Portugal

[edit] Portuguese Colonial Empire

During the Portuguese Empire period, started in the 15th century, until the Carnation Revolution of 1974, the economy of Portugal was centered in trade and raw materials related activities within its vast colonial possessions, mainly in Asia (spices, silk, dyes, porcelain and gems), Africa (ivory, timber, oil and diamonds) and South America (sugar cane, dyes, woods and gold). The country, with a transcontinental empire with plenty of natural resources and vast unexploited areas, was among the most powerful nations in the world. In 1822, the Portuguese colony of Brazil became an independent country, however, until 1974, Portugal managed to preserve its colonies/overseas territories in Africa, which included Angola and Mozambique, territories that would experience reasonable rates of economic growth until the departure of the Portuguese in 1975. After a long period of economic divergence before 1914, the Portuguese economy recovered slightly until 1950, entering thereafter on a path of strong economic convergence. Portuguese economic growth in the period 1950-1973 created an opportunity for real integration with the developed economies of Western Europe. Through emigration, trade, tourism and foreign investment, individuals and firms changed their patterns of production and consumption, bringing about a structural transformation. Simultaneously, the increasing complexity of a growing economy raised new technical and organizational challenges, stimulating the formation of modern professional and management teams.[10][11] The economy of Portugal and its overseas territories on the eve of the Carnation Revolution (a military coup on April 25, 1974) was growing well above the European average. Average family purchasing power was rising together with new consumption patterns and trends and this was promoting both investment in new capital equipment and consumption expenditure for durable and nondurable consumer goods. The Estado Novo regime economic policy encouraged and created conditions for the formation of large business conglomerates. The regime maintained a policy of corporatism that resulted in the placement of a big part of the Portuguese economy in the hands of a number of strong conglomerates, including those founded by the families of Antnio Champalimaud (Banco Totta & Aores, Banco Pinto & Sotto Mayor, Secil, Cimpor), Jos Manuel de Mello (CUF Companhia Unio Fabril), Amrico Amorim (Corticeira Amorim) and the dos Santos family (Jernimo Martins). Those Portuguese conglomerates had a business

model with similarities to South Korean chaebols and Japanese keiretsus and zaibatsus. The Companhia Unio Fabril (CUF) was one of the largest and most diversified Portuguese conglomerates with its core businesses (cement, chemicals, petrochemicals, agrochemicals, textiles, beer, beverages, metallurgy, naval engineering, electrical engineering, insurance, banking, paper, tourism, mining, etc.) and corporate headquarters located in mainland Portugal, but also with branches, plants and several developing business projects all around the Portuguese Empire, especially in the Portuguese territores of Angola and Mozambique. Other medium sized family companies specialized in textiles (for instance those located in the city of Covilh and the northwest), ceramics, porcelain, glass and crystal (like those of Alcobaa, Caldas da Ranha and Marinha Grande), engineered wood (like SONAE near Porto), canned fish (like those of Algarve and the northwest), fishing, food and beverage producing, tourism (well established in Estoril/Cascais/Sintra and growing as an international attraction in the Algarve since the 1960s) and in agriculture (like the ones scattered around the Alentejo known as the breadbasket of Portugal) completed the panorama of the national economy by the early 1970s. In addition, rural areas' populations were committed to agrarianism that was of great importance for a majority of the total population, with many families living exclusively from agriculture or complementing their salaries with farming, husbandry and forestry yields.

Portuguese overseas territories in Africa during the Estado Novo regime: Angola and Mozambique were by far the two largest of those territories. Besides that, the overseas territories were also displaying impressive economic growth and development rates from the 1920s onwards. Even during the Portuguese Colonial War (19611974), a counterinsurgency war against independentist guerrilla and terrorism, the overseas territories of Angola and Mozambique (Portuguese Overseas Provinces at the time) had countinuous economic growth rates and several sectors of its local economies were booming. They were internationally notable centres of production of oil, coffee, cotton, cashew, coconut, timber, minerals (like diamonds), metals (like iron and aluminium), banana, citrus, tea, sisal, beer, cement, fish and other sea products, beef and textiles. Labour unions were not allowed and a minimum wage policy was not enforced. However, in a context of an expanding economy, bringing better living conditions for the Portuguese population in the 1960s, the outbreak of the colonial wars in Africa set off significant social changes, among them the rapid incorporation of more and more women into the labour market.

Marcelo Caetano moved on to foster economic growth and some social improvements, such as the awarding of a monthly pension to rural workers who had never had the chance to pay social security. The objectives of Caetano's pension reform were threefold: enhancing equity, reducing fiscal and actuarial imbalance, and achieving more efficiency for the economy as a whole, for example, by establishing contributions less distortive to labour markets or by allowing the savings generated by pension funds to increase the investments in the economy.

[edit] The military coup of 1974

Portuguese population 1961-2003, in thousands, (2005 Data from FAO) with emigration giving way to retornados[12][13] ranging from 500,000 to 1 million after the revolution. The post Carnation Revolution period was characterized by chaos and negative economic growth as industries were nationalised and the negative effects of the decoupling of Portugal from its former territories were felt. Heavy industry came to an abrubt halt. All sectors of the economy from manufacturing, mining, chemical, defence, finance, agriculture and fishing went into free fall. Portugal found itself overnight going from the country in Western Europe with the highest growth rate to the lowest in fact it experienced several years of negative growth. This was amplified by the mass emigration of skilled workers and enterpreneurs due to political intimidation, and the costs of accommodating in Portugal thousands of refugees from the former overseas provinces in Africa the retornados. After the Carnation Revolution's turmoil of 1974, the Portuguese economic basis changed deeply. The Portuguese economy had changed significantly by 1973 prior to the leftist military coup, compared with its position in 1961 total output (GDP at factor cost) had grown by 120 percent in real terms. Clearly, the pre-revolutionary period was characterized by robust annual growth rates for GDP (6.9 percent), industrial production (9 percent), private consumption (6.5 percent), and gross fixed capital formation (7.8 percent). In 1960, at the initiation of Salazar's more outward-looking economic policy, Portugal's per capita GDP was only 38 percent of the EC-12 average; by the end of the Salazar period, in 1968, it had risen to 48 percent; and in 1973, on the eve of the revolution, Portugal's per capita GDP had reached 56.4 percent of the EC-12 average. In 1975, the year of maximum revolutionary turmoil, Portugal's per capita GDP declined to 52.3 percent of the EC-12 average. Convergence of real GDP growth toward the EC average occurred as a result of Portugal's economic resurgence since 1985. In 1991 Portugal's GDP per capita climbed to 54.9 percent of the EC average, exceeding by a fraction the level attained just during the worst revolutionary period.[14] The growth rate of Portuguese merchandise exports during the period 1959 to 1973 was notable 11 percent per annum. In 1960 the bulk of exports was accounted for by a few products canned fish, raw and manufactured cork, cotton textiles, and wine. By contrast, in the early 1970s (before the 1974 military coup), Portugal's export list reflected significant product

diversification, including both consumer and capital goods. Several branches of Portuguese industry became export-oriented, and in 1973 over one-fifth of Portuguese manufactured output was exported. There was a 16-percentage-point increase in the participation of the services sector from 39 percent of GDP in 1973 to 55.5 percent in 1990. Most of this growth reflected the exacerbated proliferation of civil service employment and the associated cost of public administration, together with the contribution of tourism services during the 1980s to the detriment of more sustainable and reproductive activities like manufacturing, exporting and technology/capitalintensive industries.

[edit] EU membership

European GDP (PPP) per capita in 2006. Figures from International Monetary Fund[15]

Portugal's GDP growth evolution (PPP) from 1980 to 2007 Membership in the European Communities, achieved in 1986, contributed to stable economic growth and development, largely through increased trade ties and an inflow of funds allocated by the European Union (and before that the European Communities) to improve the country's infrastructure. After a recession in 1993, the economy grew at an average annual rate of 3.3%, well above EU averages but well behind the growth of the Portuguese economy before the military coup of 1974. In order to qualify for the Economic and Monetary Union (EMU), Portugal agreed to cut its fiscal deficit and undertake structural reforms. The EMU brought to Portugal exchange rate stability, falling inflation, and falling interest rates. Falling interest rates, in turn, lowered the cost of public debt and helped the country achieve its fiscal targets. In 1999, it continued to enjoy sturdy economic growth, falling interest rates, and low unemployment. The country qualified for the Economic and Monetary Union of the European

Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on January 1, 1999. The three different designs chosen for the national side of the Portuguese euro coins were drawn by the artist Vitor Manuel Fernandes dos Santos. The inspiration came from the three seals of the first king, Dom Afonso Henriques. Portugal's inflation rate for 1999, 2.4%, was comfortably low. Household debt has expanded rapidly. The European Commission, OECD, and others have advised the Portuguese Government to exercise more fiscal restraint. Portugal's public deficit exceeded 3% of GNP in 2001, the EU's self-imposed limit, and left the country open to either EU sanctions or tighter financial supervision. The overall rate of growth slowed in late 2001 and into 2002, making fiscal austerity that much more painful to implement. Portugal has made significant progress in raising its standard of living to that of its EU partners. GDP per capita on a purchasing power parity basis rose from 51% of the EU average in 1985 to 78% in early 2002. By 2005 this had dropped to 72% (of the average across all of now 25 EU members, including seven with GDP per capita lower than Portugal) as GDP per capita rose in other EU countries. Unemployment stood at 4.1% at the end of 2001, which was low compared to the EU average. GDP growth in 2006, at 1.3%, was the lowest not just in the European Union but in all of Europe. In the 2000s, the Czech Republic, Greece, Malta and Slovenia have all overtaken Portugal in terms of GDP per head. And Portuguese GDP per head has fallen from just over 80% of the EU 25 average in 1999 to just over 70% in 2007. This poor performance of the Portuguese economy was explored in April 2007 by The Economist which described Portugal as "a new sick man of Europe".[16] From 2002 to 2007, the unemployment rate increased 65% (270,500 unemployed citizens in 2002, 448,600 unemployed citizens in 2007).[17] In December 2009, ratings agency Standard and Poor's lowered its long-term credit assessment of Portugal to "negative" from "stable," voicing pessimism on the country's structural weaknesses in the economy and weak competitiveness that would hamper growth and the capacity to strengthen its public finances and reduce debt.[18] However, the Portuguese subsidiaries of large multinational companies, such as Siemens Portugal, Volkswagen Autoeuropa, Qimonda Portugal (before the parent company has filed for bankruptcy), IKEA, Nestl Portugal, Microsoft Portugal,[19] Unilever/Jernimo Martins and Danone Portugal, are still ranked among its most productive in the world for its continued high productivity records.[20][21] Many Portuguese companies have grown and expanded internationally since after 1986. Among the most notable Portugal-based global companies are SONAE, Amorim, Sogrape, EFACEC, Portugal Telecom, Jernimo Martins, Cimpor, Unicer, Millennium bcp, Lactogal, Sumol + Compal, Delta Cafs, Derovo, Critical Software, Galp Energia, EDP, Grupo Jos de Mello, Sovena Group, Valouro, Renova, Teixeira Duarte, Soares da Costa, Portucel Soporcel, Simoldes, Iberomoldes and Logoplaste.

[edit] Portuguese Financial Crisis (2010-2011)

Main article: 2010 European sovereign debt crisis

Graph showing the economic data (Surplus/deficit, Public sector debt, GDP growth) of Portugal, the EU and the eurozone for 2009, from Eurostat The Portuguese Financial crisis is a major political crisis and economic crisis currently taking place in Portugal, which started during the first weeks of 2010. There was renewed anxiety about the excessive levels of debt in some EU countries and, more generally, about the health of the euro has spread from Ireland and Greece to Portugal, Spain and Italy. Some senior German policy makers went as far as to say that emergency bailouts to Greece and future EU aid recipients should bring with it harsh penalties.[22] In 2010, acronyms were widely used by international bond analysts, academics, and by the international economic press when referring to the underperforming economies of Portugal, Italy, Ireland, Greece, and Spain. A report published in January 2011 by the Dirio de Notcias, a leading Portuguese newspaper, demonstrated that in the period between the Carnation Revolution in 1974 and 2010, the democratic Portuguese Republic governments have encouraged over expenditure and investment bubbles through unclear public-private partnerships. This has funded numerous ineffective and unnecessary external consultancy and advising committees and firms, allowed considerable slippage in state-managed public works, inflated top management and head officers' bonuses and wages, causing a persistent and lasting recruitment policy that has boosted the number of redundant public servants. The economy has also been damaged by risky credit, public debt creation and mismanaged European structural and cohesion funds for almost four decades. Apparently, the Prime Minister Scrates's cabinet was not able to forecast or prevent any of this when symptoms first appeared in 2005, and later was incapable of doing anything to ameliorate the situation when the country was on the verge of bankruptcy in 2011.[23] In April 2011, Portugal confirmed that it will have a financial bailout from the IMF and the European Union worth 80bn Euros ($115 70bn), following Greece and the Republic of Ireland.

[edit] Employment and Wages

November 2011 Austerity Protest in Lisbon As of 2012, the unemployment rate is over 13%. The number of unemployed people has increased consistently since 2000. As of May 2006, over 420,000 people were unemployed in Portugal. The unemployment rate in the country was 7.7%. In 2007 the unemployment rate reached 8.4%, the highest unemployment rate in Portugal since 1987. The average European Union unemployment rate decreased to a record low of 7.3% in 2007. In the Portuguese sub-region of Vale do Ave, the unemployment rate has reached 15%, and in the Pennsula de Setbal sub-region 12.5%. Officially, in 2008 the unemployment decreased to 7.3% in the second quarter of 2008.[24] However, it immediately rose again to higher rates. By December 2009, unemployment had surpassed the 10% mark nationwide. Although being both a developed country and a high income country, Portugal has the lowest GDP per capita in Western Europe and its population has one of the lowest incomes per head among member states of the European Union. According to the Eurostat it had the 6th lowest purchasing power among the 27 member states of the European Union for the period 2005-2007.
[25]

Maria da Conceio Cerdeira, one of the authors of a published research study made by the Technical University of Lisbon's ISEG (Instituto Superior de Economia e Gesto), explained that "in a generic way, there is not a high intensity of work, or a great psychological pressure" in Portugal, for the mass of common ordinary workers, unlike what happens in Northern Europe or North America. Less pressure does not mean, however, a better job. The last European survey of workers, published in 2007 and which formed the basis of this 2009 research study showed that Portugal is the 5th European country with lower quality of work.[26]

[edit] Wages
The average wage in Portugal is 1,039 per month (net)[27], and the minimum wage, which is regulated by law, is 485 per month (although paid in 14 installments, which means that on average the minimum wage is 565).

[edit] Graduate unemployment

In 2008, about 8%[28] of the people with a degree were unemployed, and a much larger proportion were underemployed. This directly was correlated with a general lack of employability and student preparation for the workplace seen among many courses in a number of fields offered by certain higher education institutions or departments. The implementation of the Bologna process and other educational reforms, such as the compulsory closing of a number of courses, departments, colleges and private universities after 2005 due to a lack of academic rigour and low teaching standards, tried a totally new approach in order to tackle the problem. In 2007 alone, some major private universities were investigated by State agencies and two were immediately closed. In addition, a number of degrees of the public system were also discontinued due to lack of quality, low demand by potential students or scarce interest showed by potential employers in fresh graduates on these fields. Secondary and post-secondary nonhigher education (intermediate education ensino mdio), involving technical and vocational education, has been redeveloped since 2007, through the government's policies of the XVII Governo Constitucional (headed by Prime-Minister Jos Scrates).

Nearly 100,000 (60,000 in 2008)[28] people with an academic degree are unemployed in Portugal. This group includes a large proportion of young adults.

[edit] Economy by sector

Global distribution of Portuguese exports in 2006 as a percentage of the top market (Spain $11,493,400,000)[29] Fisheries and agriculture now account for about 4% of the GDP, down from approximately 25% in 1960, while still employing 13% of the labour force. On the other hand, the tertiary sector has grown, producing 66% of the GDP and providing jobs for 52% of the working population. The remaining 30% of the GDP is mainly produced by the building and energy sectors.

[edit] Natural resources

Natural resources such as forests cover about 34% of the country, namely pine trees (13,500 km2), Cork Oak (6800 km2), Holm Oak (5,340 km2), and Eucalyptus (2,430 km2). Cork is a major production, Portugal produces half of the world's cork. Significant mining resources are lithium, tungsten, tin, and uranium.

[edit] Agriculture and fisheries

Main articles: Agriculture in Portugal and Fishing in Portugal A considerable part of continental Portugal is dedicated to agriculture, although it does not represent most of the economy. The south has developed an extensive monoculture of cereals and olive trees and the Douro Valley in vineyards. Olive trees (4,000 km2; 1,545 sq mi), vineyards (3,750 km2; 1,450 sq mi), wheat (3,000 km2; 1,160 sq mi) and maize (2,680 km2; 1,035 sq mi) are produced in vast areas. Portuguese wine and olive oil are especially praised by nationals for their quality, thus external competition (even at much lower prices) has had little effect on consumer demand. Portugal is a traditional wine grower, and has exported its wines since the dawn of western civilization; Port Wine, Vinho Verde and Madeira Wine are the leading wine exporters. Portugal is also a quality producer of fruits, namely the Algarve oranges, cherries (large production in Cova da Beira and Alto Alentejo), and Oeste region's pra rocha (a type of pear). Other exports include horticulture and floriculture products, beet sugar, sunflower oil, cork, and tobacco.

Portugal's Exclusive Economic Zone of 1,727,408 km2. The Portuguese fishing industry is fairly large and diversified. Fishing vessels classified according to the area in which they operate, can be divided into local fishing vessels, coastal fishing vessels and long-distance fishing vessels. The local fleet is mainly composed of small traditional vessels (less than 5 GRT), comprising, in 2004, 87% of the total fishing fleet and accounting for 8% of the total tonnage. These vessels are usually equipped to use more than one fishing method, such as hooks, gill nets and traps, and constitute the so-called polyvalent segment of the fleet. Their physical output is low but reasonable levels of income are attained by virtue of the high commercial value of the species they capture: octopus, black scabbardfish, conger, pouting, hake and anglerfish. Purse seine fishing is also part of the local fleet and has, on the mainland, only one target species: the sardine. This fishery represents 37% of total landings. Portugal's Exclusive Economic Zone has 1,727,408 km2. The coastal fishing fleet accounted for only 13% of vessels but had the largest GRT (93%). These vessels operate in areas farther from the coast, and even outside the Portugal's Exclusive Economic Zone. The coastal fishing fleet comprises polyvalent, purse seine and trawl fishing vessels. The trawlers operate only on the mainland shelf and target demersal species such as horse mackerel, blue whiting, octopus and crustaceans. The crustacean trawling fishery targets Norway lobster, red shrimp and deepwater rose shrimp. The most important fish species landed in Portugal in 2004 were sardine, mackerel and horse mackerel, representing 37%, 9% and 8% of total landings by weight, and 13%, 1% and 8% of total value, respectively. Molluscs accounted for only 12% of total landings in weight, but 22% of total landings in value. Crustaceans were 0.6% of the total landings by weight and 5% by value.

[edit] Industry

Oeiras Municipality, in Lisbon Metropolitan Area, has headquarters of several Portuguese subsidiaries of major multinational companies. The major industries include: oil refineries, petrochemistry, cement production, automotive and ship industries, electrical and electronics industries, machinery, pulp and paper industry, injection moulding, plastic products, textile, footwear, leather, furniture, ceramics, beverages and food industry and cork (leader producer). Automotive and other mechanical industries are primarily located in and around Setbal, Porto, Lisbon, Aveiro, Braga, and Santarm. Coimbra and Oeiras have growing technological-based industries, including pharmaceuticals and software. Sines is a major petrochemical centre. Maia has one of the largest industrial parks of the country, including noted wood processing and food industries. Figueira da Foz is a major centre of pulp and paper industry. Marinha Grande is the most reputed glass making centre of Portugal. Leiria, Oliveira de Azemis, Vale de Cambra and Viseu, have important light industries, including injection moulding and plastics. Modern non-traditional technology-based industries like aerospace, biotechnology and information technology, have been developed in several locations across the country. Alverca, Covilh,[30] vora,[31] and Ponte de Sor are the main centres of Portuguese aerospace industry, which is led by Brazil-based company Embraer and the Portuguese company OGMA. Since after the turn of the 21st century, many major biotechnology and information technology industries have been founded and are concentrated in the metropolitan areas of Lisbon, Porto, Braga, Coimbra and Aveiro.

[edit] Services
The tertiary sector has grown, producing 66% of the GDP and providing jobs for 52% of the working population. The most significant growth rates are found in the trade sector, due to the introduction of modern means of distribution, transport and telecommunications. Financial tertiary have benefited from privatisation, also gaining in terms of efficiency. Tourism in Portugal has developed significantly and generates approximately 5% of the wealth produced in Portugal.

[edit] Financial market

In the Portuguese financial market, the major stock exchange is the Euronext Lisbon which is part of the NYSE Euronext, the first global stock exchange. It is supervised and regulated by the Portuguese Securities Market Commission. The PSI-20 is Portugal's most selective and widely known stock index. Portugal's central bank is the Banco de Portugal, which is an integral part of the European System of Central Banks. The largest Portuguese banks are Banco Comercial Portugus and the state-owned Caixa Geral de Depsitos. Portuguese banks hold strategic stakes in other sectors of the economy, including the insurance sector. Foreign bank participation is relatively high as is state ownership through the Caixa Geral de Depsitos (CGD). Overall, Portugal's financial system is sound, well managed and competitive, with shorter-term risks and vulnerabilities quite well contained, and with the system buttressed by a strong financial policy framework. Despite being relatively small and concentrated, Portugal's banking system generally compares well with other European Union (EU) countries in terms of efficiency, profitability, and asset quality, with solvency also close to European levels. Across all the financial subsectors, and with particular reference to the larger institutions, supervision of Portuguese financial institutions is active, professional and well organized. The insurance sector has performed well, partly reflecting a rapid deepening of the market in Portugal. While sensitive to various types of market and underwriting risks, both the life and non-life sectors, overall, are estimated to be able to withstand a number of severe shocks, even though the impact on individual insurers varies widely.[32]

[edit] Competitiveness
[edit] Portugal's competitiveness in the world
The Global Competitiveness Report for 2005, published by the World Economic Forum, placed Portugal on the 22nd position, ahead of countries and territories like Spain, Ireland, France, Belgium and Hong Kong. This table showed that Portugal had stepped two places regarding the 2004 ranking. On the Technology index, Portugal was ranked 20th, on the Public Institutions index Portugal was the 15th best and on the Macroeconomic index, Portugal was placed on the 37th position. [33] The Global Competitiveness Index 2007-2008 placed Portugal on the 40th position out of 131 countries and territories.[34] and in the 2008-2009 edition, it went even further down as Portugal was placed as the 43rd out of 134 countries and territories.[7]

[edit] Competitiveness by city

A study concerning competitiveness of the 18 Portuguese district capitals, complying with World Economic Forum methodology, was made by Minho University economics researchers. It was published in Pblico newspaper on 30 September 2006. The best-ranked cities in the study were vora, Lisbon and Coimbra. [35], [36], [37] Ranking:

1.vora: 7,293 2.Lisbon: 6,454 3.Coimbra: 6,042 4.Beja: 5,660 5.Leiria: 5,609 6.Castelo Branco: 5,608 7.Aveiro: 5,452 8.Guarda: 5,178 9.Santarm: 5,037 10.Portalegre: 4,711 11.Viseu: 4,628 12.Vila Real: 5,514 13.Bragana: 4,271 14.Setbal: 4,070 15.Braga: 4,055 16.Faro: 3,971 17.Viana do Castelo: 3,859 18.Porto: 3,577 Forest Fires: Like in other countries with very hot summers and seasonal drying of soils and vegetation, every year large areas of the Portuguese forest is destroyed. This has an important impact on the economy because many people and industries depend on forestry

[edit] Domestic problems

related activities. It is also a very dramatic ecological problem and a safety issue for the populations.

Portugal's Public Debt: The public debt exceeds 80% of GDP on 2009 figures. This problem is a threat to the Portuguese economy and the State's financial sustainability.[38] Over-dimensioned Public Sector: The public sector has been generally considered a very large, expensive and inefficient part of the economy. An excess of public employees and useless bureaucracy results in the loss of millions of euros every year. From the XVI Governo Constitucional government, headed by Prime Minister Jos Duro Barroso, to the XVII Governo Constitucional government, headed by Prime Minister Jos Scrates (which tried to create new rules and implement reforms aiming at better efficiency, rationalized resource allocation, fight civil servant excedentary overcapacity (excedentrios) and less bureaucracy for both citizens and companies e.g.: empresa na hora [9], PRACE Programa de Reestruturao da Administrao Central do Estado [39] , and SIMPLEX Programa de Simplificao Administrativa e Legislativa,[40] among others), the "public expenditure problem" has been a major concern in Portugal, however it had little effect, and the country's public debt and deficit were both out of control by 2010. In addition, Joo Bilhim who directed in 2005 the committee responsible for the Programme for Restructuring the State's Central Administration (PRACE) said to be disappointed with the results of the reforms tried in the mid-2000s.[41] Corruption: Corruption has become an issue of major political and economic significance for the Portuguese. The responsible authorities and many civic associations and think tanks are trying to combat corruption before it increases further. Many abusive lobbies and corruption schemes are related to concessions, unclear approvals to contractors and economic groups, or job creation for and commercial agreements with friends and family members, mainly involving the huge public sector and companies. Some cases are well known and were widely reported in the media, such as the affairs in several municipalities involving local town hall officials and businesspersons, as well as a number of politicians with wider responsibilities and power.[42][43] Notable criminal cases include the Face Oculta, the Oeiras Municipality Mayor Isaltino Morais scandal, the Apito Dourado and the Saco Azul de Felgueiras. According to the 2008 Corruption Perceptions Index of countries published by Transparency International, Portugal had the 32nd lowest level of corruption, out of 180 countries. In 2009 it had slumped to the 35th place.

[edit] Education, training and research in business and economic sciences

There are several higher education institutions awarding academic degrees in economics and business management across the whole country. Almost every polytechnical institute have programmes in management and administration. All state-run universities have programmes in economics. Among the largest and most reputed universities which host an economics department and develop research on economics, are the Technical University of Lisbon (through its Instituto Superior de Economia e Gesto ISEG), ISCTE Lisbon University Institute, the Portuguese Catholic University at Lisbon (through its Faculdade de Cincias Econmicas e Empresariais FCEE), the University of Porto (through its Faculdade de Economia da Universidade do Porto FEP); the New University of Lisbon (through its Nova School of Business and Economics NOVASBE); the Minho University (through its Escola de Economia

e Gesto EEG); and the University of Coimbra (through its Faculdade de Economia da Universidade de Coimbra FEUC). The Financial Times European Business school ranking has consistently placed the Catlica Lisbon School of Business and Economics and the Nova School of Business and Economics among the top European business and economics schools. Both the Bank of Portugal and Statistics Portugal develop lengthy and thoroughly systematic research and make reports on the Portuguese economy.

INDICATORS
xports () of goods December 2011 3 269 059 409 December 2011 3 269 059 409 452 626 Exports () of goods

Imports () of goods December 2011 4 310 Proportion of

Imports () of goods December 2011 4 310 452 626

exports of high technology goods (%) 2011 % 2,99 73,53

Coverage rate (%) 2011 %

Main indicators Reference period Unit of measurement Value

Index of

employment in construction - non adjusted (Base 2005) December 2011 - 62,8 Index of employment in industry - non adjusted (Base 2005) December 2011 - 83,38 Index of employment in retail trade - non adjusted (Base 2005) December 2011 - 98,46 Index of employment in services - non adjusted (Base 2005) December Active population (Srie 1998 - No.) 4th Quarter 2010 103 No. 5

2011 - 88,22 567,7 619,0 948,8

Unemployed population (Series 1998 - No.) 4th Quarter 2010 103 No. Employed population (Series 1998 - No.) 4th Quarter 2010 103 No. 4 Activity rate (Series 1998 - %) 4th Quarter 2010 % 61,7

Main indicators Reference period Unit of measurement Value indicator (Balance) for trade January 2012 % -21,1

Confidence

Index of turnover in retail Index of Persons

trade - seasonal adjusted deflated (Base 2005) December 2011 - 88,94 turnover in services - non adjusted (Base 2005) December 2011 - 91,89 employed (No.) on large-sized commercial units 2010 No. 100 700 commercial units (No.) 2010 No. 2 983 units 2010 103 15 428 914 15 329 409

Large-sized

Turnover () in large-sized commercial

Sales () in large-sized commercial units 2010 103

Main indicators Reference period Unit of measurement Value hotel establishments 2006 103 No. 37 566,5 same-day visitors 103 No.

Nights (No.) in

Entrances (No.) of non resident

Entrances (No.) of non resident tourists 103 No.

Departures (No.) of resident same-day visitors 2007 103 No. 16 577,4 Departures (No.) of resident tourists 2007 103 No. 4 412,0 rate (%) in hotel establishments 2009 % 38,3 Quarter 2005 No. 1 408 686 No. 2 926 231 Bed occupancy net

Tourists (Quarterly - No.) 4th

Journeys (No.) done by tourists 4th Quarter 2005