Portugal

The Portuguese Republic (Portuguese: República Portuguesa) is a democratic republic located on the west and southwest parts of the Iberian Peninsula in southwestern Europe, and is the westernmost country in continental Europe. Portugal is bordered by Spain to the north and east and by the Atlantic Ocean to the west and south. In addition, Portugal includes two archipelagos in the Atlantic, Azores (Açores) and Madeira Islands.

Economy

Portugal is a free-market capitalist economy, its per capita output stands at 76% of that of the leading Eurozone economies.

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As of 2005, Portuguese GDP grew by 1% in real terms in 2004. It was expected to grow 1.8% by the (IMF) in 2005. Overall, the country's recovery is gradual, although the financial sector has remained strong.

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In the second quarter, the unemployment rate drops to 7.2%, still lower than the leading Eurozone economies. The December 2003 Labour Law increased the flexibility of working arrangements, although it did not stop the increasing unemployment, especially among the youngest and the oldest of the working-age population. With the recovery in the second quarter, unemployment decreased to 7.2%, for the first time since the slowdown after the EMU's boast. The current administration is committed to expand market liberalization, privatization, and deregulation of the economy and simplifying creation of companies. It is also committed to promote investment in research and information technologies to improve productivity and competitiveness.

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Industrialization boomed in the 1950s with Salazar's regime, leading to an average of 6% annual growth of the GDP between 1959 and 1963, 7% between 1965 and 1967, after dropping to 5.2% in 1964. Due to international crisis, the growth largely stopped. Since 1985, the country started its modernization in a very stable environment (1985 - to the present day) and it joined the European Economic Community in 1986. {{Inote | Grande Enciclopédia Universal, page 10539, "Portugal", paragraph 4}} Successive governments have implemented various reforms and privatised many state-controlled firms and liberalised key areas of the economy, including the financial and telecommunications sectors. Portugal developed an increasingly service-based economy and it was one of the eleven founding countries of the Euro in 1999, with very restrictive criteria, and began circulating the new currency on January 1, 2002 along with twelve other EU members.

Related Topics:
Salazar - Telecommunication - 1999 - January 1

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A considerable part of continental Portugal is dedicated to agriculture, although it does not represent most of the economy. {{Inote | Grande Enciclopédia Universal, page 10540, "Portugal", paragraph 4 }} The south has developed an extensive monoculture of cereals and olive trees and the Douro Valley in vineyards. Olive trees (4,000 km²), vineyards (3,750 km²), wheat (3,000 km²) and maize (2,680 km²) 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, a situation that does not occur with other products. Portugal is a traditional wine grower, and has exported its wines since the dawn of western civilization; Port Wine and Vinho Verde (Green Wine) are the leading exporters. Portugal is also a quality producer of fruits, namely the Algarve oranges and Oeste region's Pera Rocha (a type of pear). Other exports are horticulture, floriculture, beet sugar, sunflower oil, and tobacco.

Related Topics:
Olive tree - Vineyard - Wheat - Maize - Oranges - Pear

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Natural resources such as copses cover about 34% of the country, namely pine trees (13,500 km²), cork oak (6,800 km²), holm oak (5,340 km²), and eucalyptus (2,430 km²). The large-scale growing of eucalyptus for the paper and woodchip industries has been controversial, as eucalyptus trees have very deep roots, and lead to a lowering of the water table. This has been a contributory factor in the high rate of arson, as failing farmers vent their frustrations. Cork is a major export, Portugal produces half of the world's cork.{{Inote | Grande Enciclopédia Universal, page 10541, "Portugal", paragraph 3}} Significant mining resources are tungsten, tin, and uranium. {{Inote | Grande Enciclopédia Universal, page 10542, "Portugal", paragraph 3}}

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The major industries are the textile, footwear, leather, furniture, ceramics (highlighting the international popularity of Vista Alegre), and cork. Modern industries have developed significantly, including: oil refineries, petrochemistry, cement production, automotive and ship industries, electrical and electronics industries, machinery and paper industries. {{Inote | Grande Enciclopédia Universal, page 10543, "Portugal", paragraph 4}} Portugal has an ambitious and well-planned complex of petrochemical industries in Sines. Automotive and other mechanical industries are located in Setúbal, Porto, Aveiro, Braga, Santarém, and Azambuja.

Related Topics:
Vista Alegre - Sines

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Portugal's balance of trade is negative. It buys mostly in the European Union from: Spain, Germany, France, Italy, and the United Kingdom. It also sells most of its products within the union to: Germany, Spain, and France mostly.

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Portugal is trying to develop a cultural and rustic tourism, rather than only beach tourism, in order to attract more affluent tourists often concerned in getting to know the real Portugal. The interior of the nation has a decreasing population, but exceptional touristic potential. The Algarve, with its different beaches has been the primary attraction for decades, but it has suffered from mass tourism, and the authorities have been working to recover the 1960's Algarve, namely recovering the coast and demolishing illegal urbanizations. Mass tourism has caused some ecological damage in the Algarve, for example water shortages. The Lisbon area has recently become a very popular destination, mostly due to the city of Lisbon urban historical attractions, but also due to Sintra's fabled palaces and castles located in very romantic and exotic scenery. The island territories of Madeira and the Azores have also a growing potential.

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