Recruitment Portugal

ECONOMY IN PORTUGAL

A member of the European Union since 1986, Portugal has a healthy economic growth. They export 75% of their agricultural and cattle production. Viniculture dominates activities to the North of the Douro, where about fifteen million litres of Port wine is produced annually.

The economy is based on traditional industries such as textiles, clothing, footwear, cork and wood products, porcelain and glass. With excellent natural resources and copses covering about 34% of the country, cork is a major export with Portugal producing half of the world's supply. They are also producers of olive oil and a huge exporter of canned food. The fishing, tourist, construction and steel industries have gradually increased and made great contributions to the economy, GDP per capita purchasing power rose from 51% of the EU average in 1985 to 78% in early 2002.

With the Government anxious to modernize capita plant and increase their competitiveness in the world markets, growth is expected to remain stable for the next couple of years.

Because there has been a dramatic increase in household debt the Government is exercising more fiscal restraint. They will be forced into greater self-sufficiency because EU funds are likely to be withdrawn in 2006 and EU expansion into Eastern Europe will eradicate Portugal's main competitive advantage of low labour cost.