Portugal - Dados Básicos

Portugal - Basic Data

March 2014

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Portugal - Basic Data (March 2014)

Index

1. Background 3

1.1 Geography 3

1.2 Population and language 3

1.3 Summary 3

2. Politics 4

3. Infrastructures 4

4. Economy 4

4.1 Economic structure 4

4.2 Current economic situation and outlook 5

5. International trade 6

6. International investment 8

6.1 Foreign direct investment in Portugal 8

6.2 Portuguese foreign direct investment 9




Background

Mainland Portugal is geographically located in Europe’s West

Coast, on the Iberian Peninsula. It is bordered by Spain to the

North and East and by the Atlantic Ocean to the West and South,

making it a privileged geo strategic location between Europe,

America and Africa.

In addition to the mainland, Portugal’s territory also includes

the Autonomous Regions of the Azores and Madeira, two

archipelagos located in the Atlantic Ocean.

Portuguese borders have remained unchanged since the XIII

Century, making Portugal one of the oldest countries in the

world, with nearly 900 years of history that clearly demonstrates

its strong identity and internal cohesion.

Geography

On mainland Portugal, the Tagus River, Portugal’s largest river,

divides the high mountainous lands and plateaus of the North,

from the low lying plains of the South. Also the flat coastal area

contrasts with that of the inland. The highest peaks are found in

a mountainous range in the centre of the country, of which Serra

da Estrela is the highest with 1,991 m. On the archipelagos, Pico

(2,351 m) is the highest peak in the Azores, while Pico Ruivo

(1,862 m) is the highest peak in Madeira.

The coast of mainland Portugal is mostly unbroken, except for

two major estuaries (Tagus and Sado). There are also small bays

(Peniche, Sines and Lagos) and lagoons (Vouga-Aveiro, Óbidos

and Faro). Headlands are few in number, small in size but of great

beauty: these include the Capes of Mondego, Carvoeiro, Roca,

Espichel, Sines, S. Vicente and Santa Maria.

Portugal’s climate offers mild winters and pleasant summers. The

wettest months are November and December, whilst the driest

are from April to September.

Population and language

Portugal’s population is estimated at 10.5 million, of which

51% are economically active. The demographic concentration is

higher near the coastal areas, with Lisbon (the capital city) and

Porto showing the highest population density.

The Portuguese language is spoken by more than 200 million

people spread over all continents: Europe, Africa, America and

Asia. This diversity greatly contributes to the strong historical and

cultural ties that Portugal has with the world.

Summary

Area: 92,212.0 sq km

Population (thousands): 10,499 (2013) a

Working population (thousands):

5,388 (Q4 2013) a

Population density (inhabit./sq km):

114.3a (2012)

Official designation: Republic of Portugal

Capital: Lisbon (2.1 million inhabit.– metropolitan area)

District Capitals:

Aveiro, Beja, Braga, Bragança, Castelo Branco, Coimbra, Évora, Faro, Funchal (in Madeira), Guarda, Leiria, Ponta Delgada (in the Azores), Portalegre, Porto, Santarém, Setúbal, Viana do Castelo, Vila Real and Viseu.

Main religion: Roman Catholic

Language: Portuguese

Currency: Euro (in units of 100 cents)

EUR = 200.482 PTE (fixed parity 1/01/99)

EUR = 1.3281 USD (average rate in 2013)

GDP at market prices: 165,854 million EUR (2013) a

GDP per capita (PPP): 19,100a EUR (2013) a

Source: INE (Statistics of Portugal); Banco de Portugal and EIU - Economist Intelligence Unit.Note: (a) Estimate




Politics

The Republic of Portugal is a Parliamentary democracy, based

on the respect and the effective guarantees for fundamental

rights and freedoms and the separation and interdependence of

powers. Under the Portuguese Constitution, sovereign powers

are vested in the President of the Republic, the Assembly of the

Republic, the Government and the Courts.

The President of the Republic is the Head of State, elected by

direct universal suffrage for a five year term, with a maximum of

two terms. The current President of the Republic is Aníbal Cavaco

Silva who was re-elected on 23rd January 2011.

Legislative power lies with the Parliament (Assembly of the

Republic) represented by 230 members which are elected by

popular vote to serve a four year term.

Executive power lies with the Government, headed by the Prime

Minister, the Ministers and the Secretaries of State. Pedro Passos

Coelho, Portugal’s Prime Minister and the leader of the Social

Democratic Party won the legislative elections in June 2011.

The Portuguese judicial system consists of several categories of

Court, independent of each other, with their own structure and

rules. Two of these categories are composed only by one Court

(the Constitutional Court and the Court of Auditors). The Judicial,

Administrative and Fiscal Courts are numerous, hierarchically

structured and respond to a Supreme Court. In addition, there are

Maritime Courts, Courts of Arbitration and Justices of the Peace.

Infrastructures

Road Infrastructures: Portugal has a developed road network,

comprising of motorways (AE), main roads (IP), secondary roads (IC),

national roads (EN) and municipal routes. In 2012, the mainland road

network reached 14,284 km, of which 2,988 km was motorway,

more than 1/5 of the total road network.

Rail Network: The rail network comprises 2,843 km (2,794 km

with rail traffic) providing North-South connection down the

coastline and East-West across the country. Railway network

density tends to be more significant in regions with a higher

population concentration.

Airports: There are 15 airports. On the mainland the three major

international airports are located in the coastal cities of Lisbon,

Porto and Faro. Due to the isolation of the Autonomous Regions

there are a larger number of airports. The Azores have nine and

Madeira has two. Most international airlines serve the country’s

main airports.

Maritime Routes: Mainland Portugal has nine major ports: Viana

do Castelo and Leixões, in the North; Aveiro and Figueira da Foz,

in the Centre; Lisbon and Setúbal in the Lisbon region; Sines in

the Alentejo; Faro and Portimão in the Algarve. The Autonomous

Region of the Azores has eight ports and the Autonomous Region

of Madeira has three. Only Lisbon and Leixões on the mainland

offer passenger services, though the number of passengers

embarking and disembarking at Leixões port is insignificant. The

port infrastructure is thus primarily geared to handling goods.

This is particularly so at Sines (40.4% of total in 2012), Leixões

(22.5%) and Lisbon (14.8%).

Economy

Economic structure

Following the trend of its European partners, over the last decades

one of the most important characteristics of the structure of the

Portuguese economy is the increase in the services sector, that

contributed, in 2013, with 74.4% of GVA and employed 65.9%

of the population. Agriculture, forestry and fishing generated

only 2.4% of GVA (compared with 24% in 1960), and 9.9% of

employment, while industry, construction, energy and water

represented 23.1% of GVA and 24.2% of employment.

In the last decade, apart from a greater focus and diversification of

services within the economic activity, there was, in the transformation

industry in Portugal a significant change in its specialization. Coming

from a dependence on traditional industrial activities to a situation

where new sectors, with a larger amount of technology, have gained

importance and significant growth, sectors such as the automotive

and components sector, electronics, energy, pharmaceutical sector

and industries related to new technologies of information and

telecommunications.

Also, Portugal’s geographic position also impacts on the growth of

the services sector. The mild Mediterranean climate, regulated by

the influence of the Atlantic, together with its extensive coastline,

are significant factors driving the growth of the tourism industry.

GVA Breakdown – 2013

Services Agriculture, forestry, and fishing

Industry, construction, energy and water

Source: Office For Strategy and Studies - Ministry of Economy Note: GVA - Gross Value Added

2.4%

23.1%

74.4%




Current economic situation and outlook

The Portuguese economy registered a lower decline in economic activity during 2013 (-1.4%), in comparison to 2012 (-3.2%). The positive performance of exports and a smaller contraction in domestic demand and of investment were determining factors in this recuperation.

Sources: Office For Strategy and Studies - Ministry of Economy; Statistics of Portugal (INE); Banco de Portugal; EIU - Economist Intelligence Unit and European Union.

Notes: (a) Estimate; (b) Forecast: European Union (European Economic Forecast -Winter 2014) and EIU - Economist Intelligence Unit - February 2014

Exchange rate EUR/USD - EIU - Economist Intelligence Unit - February 2014

n.a. - not available

Economic Indicators 2009 2010 2011 2012 2013a 2014b 2015b

GDP at market prices Million EUR 168,529 172,860 171,126 165,108 165,854 167,800 171,500

Million USD 234,255 229,904 237,865 212,989 220,586 215,200 216,100

Real change -2.9 1.9 -1.3 -3.2 -1.4 0.8 1.5

Per capita (PPP) Euro 17,916 19,208 18,388 19,652 19,100 20,377 21,256

USD 24,903 25,546 25,559 25,351 25,403 26,082 26,783

Per person employed Nominal change 0.8 4.1 1.8 0.7 3.1 1.2 1.8

Private consumption Million EUR 109,775 113,980 112,980 108,493 107,011 103,200 105,200

Real change -2.3 2.5 -3.3 -5.3 -1.7 0.1 0.8

Public consumption Million EUR 37,186 37,335 34,082 30,120 31,606 31,100 31,700

Real change 4.7 0.1 -5.0 -4.7 -1.7 -2.5 -1.9

Investment/GFCF Million EUR 34,629 33,830 30,779 26,473 24,529 25,200 25,800

% of GDP 20.5 19.6 18.0 16.0 14.8 15.0 15.1

Real change -8.6 -3.1 -10.4 -14.3 -6.6 1.2 3.7

GFCF (excl, construction) % of GDP 7.9 7.5 6.9 6.6 6.6 n.a. n.a.

Real change -11.3 -1.7 -9.3 -9.1 2.9 n.a. n.a.

Population ‘000 inhabitants 10,633 10,637 10,622 10,579 10,499 10,489 10,478

Employment ‘000 individuals 5,054 4,978 4,837 4,635 4,514 4,515 4,534

Unemployment ‘000 individuals 529 603 706 860 876 892 877

Rate of economic activity % of total pop. > 15 years old 61.9 61.9 61.3 61.0 60.2 n.a. n.a.

Unemployment rate Portugal % of active population 10.6 12.0 12.9 15.9 16.5 16.8 16.5

Unemployment rate EU-28 % of active population 9.0 9.7 9.7 10.5 10.9 10.7 10.4

Overall balance - General Government % of GDP -10.2 -9.8 -4.3 -6.4 -5.9 -4.0 -2.5

Public Debt % of GDP 83.7 94.0 108.2 124.1 129.4 126.6 125.8

Current Account Balance Million EUR -18.370 -17.978 -12.322 -3.632 663 1.342 1.887

% of GDP -10.9 -10.4 -7.2 -2.2 0.4 0.8 1.1

HCPI – Portugal Annual change – average -0.9 1.4 3.6 2.8 0.4 0.8 1.2

HCPI – EU-28 Annual change - average 1.0 2.1 3.1 2.6 1.5 1.2 1.5

Employment Breakdown - 2013

Services Agriculture, forestry and fishing

Industry, construction, energy and water

Source: Office For Strategy and Studies - Ministry of Economy

9.9%

24.2%

65.9%

1 Statistics of Portugal (INE) - National Accounts Preliminary Quarterly and Annual 11 March 20142 European Economic Forescat - Winter 2014

In accordance with data published by Instituto Nacional de Estatisticas (INE1), GDP increased, in comparison to the same period in 2012, by 1.7% in the last quarter of 2013.

After two years of the Economic and Financial Assistance programme, the Portuguese economy registered significant improvements, in respect to the external rebalancing and the reduction of the primary structural budget deficit, as well as access to international financial markets versus the financial capacity of the Portuguese economy.

The expectations of the EU2 are a recuperation of the Portuguese economy that should increase 0.8% in 2014 and 1.5% in 2015.

These perspectives are part of an intense pressure to reduce public spending, rigorous budget consolidation and other austerity measures, still necessary and stated in the financial assistance programme agreed with the European Union and the IMF that will terminate in April 2014.




International trade

According to preliminary data released by the Banco de Portugal, in 2013, exports of goods and services registered an increase of 5.7% and imports showed a slight increase (+1.1% in comparison to 2012). The trade balance of goods and services were positive in 2013, reversing the negative tendency registered over the last decade.

Exports of goods also increased over the same period (+4.6% in relation to 2012), in accordance with the preliminary data supplied by INE, while imports of goods only increase by 0.8%.

Trade balance of goods continued to show a deficit in 2013, however for the fourth consecutive year the deficit has decreased (-14.9% in relation to 2012 and -52.9% between 2009 and 2013).

Machinery and tools continue to be the most exported products (14.8% in 2013), followed by oil products (10.5% of the total), vehicles and other transport material (10.5%), base metals (7.8%) and plastics and rubber (6.9%). These five main product

groups represented about 51% of the total exported by Portugal in 2013.

The principal destination for exports of goods was the EU (70.2%), highlighting the increase in the export quota for the MAGREB markets (3.2% 2013, against 2.3% in 2012). Portugal’s main clients were Spain, Germany and France representing around 47% of the total exported in 2013. The main clients remain almost identical, in relation to 2012, with the exception of Brazil that gained importance in relation to China that dropped out of the TOP 10.

In relation to the imports of goods, oil products, machinery and tools, agricultural and chemical products lead the ranking of purchases made in 2013, representing, in total, 56% of the total imported (57% over the same period in 2012). The majority of products purchased in 2013 (72.3% of the total) were from the European Union. The main suppliers were Spain, Germany and France that together represented 51% of total imports in 2013, highlighting Russia’s entry into the TOP 10, to the detriment of Brazil.

Portugal’s International Trade 2008 2009 2010 2011 2012a 2013aTVH (%)

2013/2012

Trade in goods and services

Exports (fob) Million EUR 57,066 48,339 54,981 62,233 64,535 68,218 5.7

Imports (fob) Million EUR 73,449 60,148 67,498 68,741 64,683 65,372 1.1

Balance (fob) Million EUR -16,383 -11,809 -12,517 -6,508 -148 2,845 2.023

% of GDP -9.5 -7.0 -7.2 -3.8 -0.1 1.7

Trade in goods

Exports (fob) Million EUR 38,847 31,697 37,268 42,828 45,259 47,340 4.6

Imports (cif) Million EUR 64,194 51,379 58,647 59,229 56,166 56,617 0.8

Balance (fob-cif) Million EUR -25,347 -19,682 -21,379 -16,401 -10,907 -9,277 -14.9

% of GDP -14.7 -11.7 -12.4 -9.6 -6.6 -5.6

Source: Banco de Portugal (Trade in goods and services); INE - Statistics of Portugal (Trade in goods); Note: (a) 2012 provisional and 2013 preliminary data

Source: INE - Statistics of Portugal (2012 provisional and 2013 preliminary data) Source: INE - Statistics of Portugal (2012 provisional and 2013 preliminary data)

Geographical Distribution - Exports of Goods Geographical Distribution - Imports of Goods

UE 28

PALOP

NAFTA

MAGREB

MERCOSUL

Others

UE 28

PALOP

NAFTA

MERCOSUL

MAGREB

Others

2012

70.2%

8.0%

5.1%

3.2%

2.3% 11.3%

2013

71.1%

8.0%

5.0%

2.4%

2.3% 11.3%

2012

2013

71.8%

3.2%3.1%2.6%2.2%

17.1%

72.3%

4.8%

1.9%1.8%1.2%

18.1%




Trading Partners – Main Clients of Goods

Source: INE - Statistics of Portugal (2012 provisional and 2013 preliminary data)

Trading Partners – Main Suppliers


Exports – Main Products

Spain

Germany

France

Angola

United Kingdom

USA

Netherlands

Italy

Imports – Main Products

Belgium

Brazil

China

Others

Spain

Germany

France

Italy

Machinery and tools

Oil products

Vehicles and other transport material

Base metals

Plastics and rubber

Chemical products

Other products

Agricultural products

Food products

Clothing

Wood Pulp and paper

Minerals and mineral products

Footwear

Textile materials

Wood and cork

Optical and precision instruments

Skins and leather

Oil products

Machinery and tools

Agricultural products

Chemical products

Vehicles and other transport material

Base metals

Plastics and rubber

Food products

Textile materials

Clothing

Other products

Optical and precision instrument

Wood Pulp and papers

Skins and leather

Wood and Cork

Minerals and mineral products

Footwear

Netherlands

Angola

United Kingdom

Belgium

China

Rússia

Brazil

Others


2013

22.5%

12.4%

11.8%6.6%5.3%

3.7%4.1%

3.1%1.7%

24.6%

201223.6%

11.6%

11.6%6.6%5.5%4.2%

3.3%

4.0%

2.8%

1.6%

25.1%

4.1%

2013

32.0%

11.4%

6.6%5.2%4.8%3.2%

2.5%3.0%

2.4%2.4%

26.4%

201232.3%

11.4%

6.8%5.2%5.0%4.6%

2.5%

2.9%

2.4%1.8%

25.1%

2013 2012

15.3%

8.3%

11.6%

8.2%

6.9%

5.6%

6.1%

5.4%

5.2%

5.4%

4.9%

4.9%

3.6%

3.6%

3.2%

1.2%

0.4%

14.8%

10.5%

10.5%

7.8%

6.9%

5.7%

5.5%

5.4%

5.4%

5.3%

4.9%

4.8%

3.8%

3.7%

3.2%

1.4%

0.5%

2013 2012

20.7%

14.8%

10.8%

10.9%

8.4%

7.6%

5.5%

4.4%

2.6%

2.8%

2.9%

2.1%

2.0%

1.1%

1.1%

1.2%

1.0%

19.5%

14.5%

11.1%

10.5%

8.7%

7.7%

5.8%

4.7%

2.9%

2.9%

2.9%

2.2%

2.1%

1.3%

1.2%

1.2%

1.0%




Foreign Direct Investment in Portugal per Sector a

Foreign Direct Investment in Portugal by Country of Origin a

Source: Banco de Portugal; Note: (a) Gross Investment

Trends in Foreign Direct Investment in Portugal

Source: Banco de Portugal; Unit: Million EUR

Source: Banco de Portugal; Nota: (a) Gross Investment

Gross investment Net investment

50,000

40,000

30,000

20,000

10,000

International investment

Foreign direct investment in Portugal

In 2013, Foreign Direct Investment (FDI), in gross terms, reached a total amount of 30.1 billion Euros (-36.8% in relation to 2012), while the FDI stock registered up to the end of the year 93.2 billion Euros (+2.9% in relation to 2012).

Wholesale and retail trade was the sector that most benefited with the inflow of foreign capital, (31.9% of the total in 2013 against 34.2% in 2012), followed by the manufacturing industries (22.5% in relation to 15.3% in 2012) and financial and insurance activities (20.8% in 2013 and 25.3% in 2012), representing in total, 75% of total gross FDI in 2013, the same as in 2012.

The EU is still the main origin of FDI in Portugal (93% of the total in 2013). Spain, France, United Kingdom, Germany and Belgium lead the ranking (78.4% of the total in 2013, when in 2012 they represented 56.8%).

Outside the European Union, only Switzerland (8th largest investor) and Brazil (9th) appear in the 10 major foreign investors

in Portugal, in 2013.

Netherlands

Luxembourg

Switzerland

Brazil

Sweden

Spain

France

United Kingdom

Germany

Belgium

Áustria

Cyprus

Others

2013

32,018

1,948 1,9987,0018,021

2,345

39,62243,087

47,656

30,109

2009 2010 2011 2012

2013

2012

34.2%

25.3%

15.3%

7.7%

6.3%

5.7%0.6% 0.3%

4.6%

31.9%

22.5%20.8%

4.0%

3.6%

2.8%

12.3%1.1%1.0%

Information and communication activities

Consultancy, scientific and technical activities

Construction

Real estate activities

Others

Wholesale and retail trade

Manufacturing

Financial and insurance activities

Electricity, gas, water

2013

2012

18.6%

14.9%

14.2%11.6%

9.2%

7.9%

4.8%

6.2%

4.7%

4.2%

3.7%

22.3%

18.1%11.5%

10.8%

8.0%

4.9%4.7%3.0%0.6% 0.5%

15.7%





Portuguese foreign direct investment

Over the last 5 years Portuguese foreign direct investment (PFDI), in gross terms, was estimated between 7 and 20 billion Euros.

In 2013, gross Portuguese foreign direct investment (PFDI) totalled around 14.1 billion Euros, showing a decrease in relation to 2012 (-12.0%), also registering a high level of disinvestment, but lower than the previous year. In net terms an amount of 1.1 billion Euros were reached, highlighting an increase over the same period in 2012, but lower than in 2011. PFDI Stock registered, until the end of 2013, 59.4 billion Euros (+3.0% in relation to 2012).

Portuguese Foreign Direct Investment per Sector a

Portuguese Foreign Direct Investment by Major Recipients a

Trends in Portuguese Foreign Direct Investment

Source: Banco de Portugal; Unit: Million EUR


Gross Investment Net Investment

Financial and insurance activities were the areas that Portuguese companies most invested in (85.3% of the total in 2013 against 74.8% over the same period in 2012), followed by wholesale and retail trade (4.5%) and the manufacturing industries (4.4% of the total, while in 2012 it was 11.8%).

The European Union was the main market for PFDI (93.0% in 2013, against 82.5% in 2012). In the ranking for the PFDI mar-kets the Netherlands lead by a large margin (63.1% of the to-tal in 2013 and in 2012 69.1%), followed by Germany (16.1% in 2013 and 0.5% in 2012) and Spain (8.4% against 4.4% in 2012).

Financial and insurance activities

Wholesale and retail trade

Manifacturing industries

Construction

Consultancy, scientific and technical activities

Electricity, gas, water

Real estate activities

Information and communication activities

Others

Netherlands

Germany

Spain

Brazil

Poland

United Kingdom

Luxembourg

Angola

Mozambique

France

USA

Others

588

-5,658

10,722

451 1,075

7,7709,790

15,96614,048

2009 2010 2011 2012 2013-10.000

-5.000

0

5.000

10.000

15.000

20.000 19,560

2013

2012

74.8%

11.8%

3.2%3.0%1.7%

4.1%0.1%

1.1%0.2%

85.3%

4.5%4.4%1.9%

0.1%1.4%

0.1%1.5%0.7%

2013

2012

69.1%

5.6%

4.4%3.5%2.4%1.7%

9.6%1.1%1.0%0.9% 0.8%

63.1%

16.1%

8.4%

2.6%1.1%1.1%1.1%0.9% 0.7%

0.7%4.4%

Portugal - Dados Básicos

Economy & Finance

Transcript of Portugal - Dados Básicos