PORTUGAL - COUNTRY PROFILE [AICEP - 2012]

7/29/2019 PORTUGAL - COUNTRY PROFILE [AICEP - 2012]

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Portugal - Country Prole

April 2012


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aicepPortugal Global

Portugal - Country Prole (April 2012)

3aicep Portugal Global Trade & Investment Agency Av. 5 de Outubro, 101, 1050-051 LISBOA

Tel. Lisboa: + 351 217 909 500 Contact Centre: 808 214 214 [email protected] www.portugalglobal.pt

Index

1. History 5

2. Culture 6

3. Geography and socio-economic characteristics 8

3.1 Geography, climate 8

3.2 Socio-economic indicators 8

4. Political and Administrative Organization 10

4.1 Political structure 10

4.2 Administrative organization 11

5. Population 13

5.1 Regional breakdown 13

5.2 Migrations 14

5.3 Active population 15

5.4 Schooling levels o the active population 15

6. Inrastructure networks 17

6.1 Roadways 17

6.2 Railways 17

6.3 Ports 18

6.4 Air transport 18

6.5 Technological inrastructures 19

6.6 Policies or the uture 21

7. Resources and productive structure 22

7.1 Agriculture, orestry and shing 23

7.2 Industry 27

7.3 Construction 37

7.4 Services 38


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8. Economic situation 42

8.1 Recent economic policy 42

8.2 The economic outlook 43

8.3 The regional economies 46

9. Regional economic ramework Portugal and the European Union 55

10. Foreign trade 56

10.1 Trade balance trends 57

10.2 Main trading partners 57

10.3 Composition o trade 60

10.4 International trade and the regions 61

11. Investment 62

11.1 Foreign direct investment trends in Portugal 62

11.1.1 Principal investors by country 62

11.1.2 Foreign direct investment by major sectors 63

11.1.3 Recent oreign direct investment projects in Portugal 63

11.2 Trends in Portuguese oreign direct investment 65

11.2.1 Portuguese oreign direct investment by major recipients 66

11.2.2 Main sectors 66

11.2.3 Recent projects indicating the internationalization o Portuguese companies 66

12. Tourism 69

13. International and regional relations 71

14. Legal requirements or market access 72

14.1 Intra-EU exchange procedures 72

14.2 General import procedures 72

14.3 Foreign investment procedures 74

ANNEXES

Annex 1 Custom procedures 76

Annex 2 Import documentation 77

Annex 3 Useul Internet addresses 78


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1. History

The battle o So Mamede which occurred in 1128,

between the royalty o Portucale led by Dom AonsoHenriques and the Gallician nobles led by his mother Dona

Teresa, was decisive or the birth o Portugal. Once the

battle was won and Dona Teresa was expelled rom the

Condado Portucalense, Dom Aonso Henriques declared

the principality independent. Various skirmishes continued

against Len and Castile and against the Muslims, but it

was not until the Battle o Ourique, in 1139, that Portugals

independence was declared and Dom Aonso Henriques,

with the help o Portuguese chies, was proclaimed sovereign

- Dom Aonso I o Portugal. However, the independence o

Portugal would only be recognized by the King o Castile in

1143 with the signing o the Treaty o Zamora.

There ollowed a long period o conquests and a number o

treaties were signed between Portugal and the Kingdom o

Castile and, in 1297, during the reign o Dom Dinis, the actual

rontiers o Portugal were dened (the oldest in Europe).

The ourteenth century saw the appearance o the rst

bright lights o the Golden Age o Portugal. Its language

began to develop apart rom the Gallic-Portuguese, the

Court became distinguished with intellectual brilliance on a

European scale and the University was ounded.

The teenth century marked the beginning o the

Discoveries, during which Portugal witnesses a periodo great expansion across the oceans. The archipelagos

o Madeira (1419) and the Azores (1425) were ocially

discovered and a ew cities in the Kingdom o Morocco

were conquered. Among the numerous personalities

involved with this period the ollowing stand out: Diogo

Co, or the discovery o the Arican coast, Bartolomeu

Dias, who in 1488 sailed around the Cape o Good Hope

and opened the route to the discovery o India by Vasco

da Gama (1498) and, lastly, Pedro lvares Cabral who

discovered Brazil in 1500.

Padro dos Descobrimentos (Monument to the Discoveries)

RuiMoraisdeSousa

The dream o a new Brazil (this time in Arica, linking Angola

and Mozambique through regularly travelled territories

that were never settled) was hindered by English imperial

ambitions, stirring up orces or a change in political regime.

Thus, at the beginning o the twentieth century the FirstRepublic was established in Portugal (1910).

Due to the nancial crisis that swept Europe ater World War

I and to domestic political instability, in 1926 a military coup

put an end to the parliamentary regime o the First Republic.

In 1933, the regime in power gave way to the Estado Novo,

or New State, which ruled the country until 1974.

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, fourishing cultural and scientic

activity and the armation o innovation in Portugal.

With the end o the imperial era (with the liberation, in

the mid 1970s, o Angola, Cape Verde, Guinea Bissau,

Mozambique, and So Tom and Prncipe), Portugal became

a member o the European Economic Community in 1986

and later joined the Euro Area, but without severing the


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strong links existing with the other seven Portuguese-

speaking countries (which led to the creation o the

Community o Portuguese Speaking Countries, or CPLP,

Comunidade dos Pases de Lngua Portuguesa) and with the

Portuguese communities scattered throughout the world.

Currently, Portugal is a country that enjoys social and

political stability that asserts itsel more and more due to

its ability to engage in dialogue and to understand diversity

based on its culture and style o lie resulting rom centuries

o living side by side with other peoples.

2. Culture

Portuguese culture is based on a past marked by the peoples

that occupied its territory, o which several outstanding

examples remain: the temple o Diana in vora rom the

Roman period and the Moorish architecture so typical o

cities in the South o Portugal, such as Olho and Tavira.

Portuguese art was enriched by various oreign infuences

during the centuries. The Portuguese discoveries around

the world led to the country becoming more receptive to

oriental infuences, as well as the period o the teenth

century when the discovery o Brazil and its riches

infuenced the development o the Baroque style.

In architecture, Roman and Gothic infuences gave the

country some o its most imposing cathedrals. In theteenth century a completely national style was born the

Manueline style that expressed the blending together o

various art orms into a luxurious and ornamental style.

Various examples o great architectural works can be cited:

the Jeronimos Monastery in Lisbon; the S (cathedral)

o Lisbon, where traces o Roman construction are still

visible on the acade; the Palace o Justice in Lisbon, an

example o austere modern architecture; the Castle and

Church o the Convent o Christ in Tomar; the Portuguese

Abbey o Santa Maria da Vitria (in the Gothic style); the

Pavilho de Portugal (Pavilion o Portugal) - Parque das Naes

(Park o Nations)

RuiMoraisdeSousa

Clrigos Tower, in granite, in Oporto, and the Romanesque

Cathedral o 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 o Nations, the site o the last

worlds air o the twentieth century which was dedicated

to the theme o the oceans.

The splendour o sculpture was expressed in the

magnicent twelth and thirteenth century tombs and

in the Baroque sculptures o the eighteenth century, the

crches o Joaquim Machado de Castro truly stand out. The

classic and romantic traditions o Italy and France, besides

infuencing the works o Machado de Castro, were also

determining actors in the plastic arts expression o Antnio

Soares dos Reis, in the nineteenth century.

The school o painters o the teenth century was the

precursor o a patrician style o painting o Flemish

painters, who let an eminent heritage in religious art by

decorating various palaces and convents in Portugal. The

romantic period o the nineteenth century, although late,

led to the rebirth o national art. There ollowed a period o

natural realism that opened doors to new experiences that


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ollowed in the twentieth century; worth noting are the

works o Maria Helena Vieira da Silva in abstract painting

and o Carlos Botelho in Lisbon street scenes.

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 o rooms

and entrance halls o various palaces and stately mansions

where there are panels o tiles, with blue and white

colours predominating.

Exceptionally good examples can be seen in the Ptio

o Carranca, in the Pao o Sintra, in the Church o SoRoque in Lisbon and in the Quinta da Bacalhoa, in Vila

Fresca de Azeito, near Setbal. Even the Lisbon subway/

underground authority decorated some o its stations with

tiles signed by contemporary Portuguese artists.

Literature stands out through the richness and variety

o its lyric poetry, through writings exalting history and

or subtlety in drama, biographies and essays. The rst

songbooks, known as cancioneiros are witness toa school o poetry based on love, a style that crossed

the border and infuenced Spanish cancioneiros. The

romantic style absorbed the infuence o our neighbours,

although without preerence or the heroic.

The Lusadas o Lus de Cames is the great epic work o

the sixteenth century; it is the classic poem that exalts the

exploits o the Portuguese beyond the sea.

There exist other well known names in poetry as, or

example, Fernando Pessoa, Eugnio de Andrade, Florbela

Espanca, Cesrio Verde, Antnio Ramos Rosa, Mrio

Cesariny and Antero do Quental, among others.

As or 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 o

the Nobel Prize or literature in 1998).

Centro Cultural de Belm (Lisbon)

In the theatre, the outstanding gures are Gil Vicente,

Antnio Jos da Silva (known as the Jew) and Bernardo

Santareno.

Popular music and dance and the traditional ado continue

to be undamental orms o musical expression o the

country. The most amous adista in the world was Amlia

Rodrigues, but today names like Carlos do Carmo or Marisa

keep alive this type o song long associated with Portugal.

Lastly, speaking o Portuguese culture is tantamount to

the ability to spread the language. Portuguese is the th

most spoken language in the world and the third most

spoken in the West; more than 210 million people speak

the language.

It is the ocial language o Angola, Brazil, Cape Verde,

Guinea-Bissau, Mozambique, and So Tom and Prncipe.

It is also one o the ocial languages o Equatorial Guinea

(together with Spanish and French), East Timor (with

Ttum) and Macao (with Cantonese).

It is even spoken in ormer Portuguese India (Goa, Damo

and Diu), Andorra, Luxembourg and Nambia, in addition to

having ocial status in the European Union, Mercosul and

the Arican Union.

Antn

ioSacchetti


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3. Geography and Socio-Economic

Characteristics

3.1 Geography, climate

Portugal is geographically situated on the west coast o

Europe, in the Iberian Peninsula. It borders Spain on the

north and east, and the Atlantic Ocean on the west and

south. Its rontiers were dened as long ago as the thirteenth

century and include, in addition to the continental territory,

the Autonomous Regions o the Azores and Madeira,

archipelagos situated in the Atlantic Ocean.

With a total area o 92,212 km2, Portugal benets rom an

excellent geographical location, being situated in a geo-

strategical position between Europe, America and Arica.

Even the coastal areas, generally o lower altitude, are

distinct rom the highlands o the interior. The highest

altitudes are located in a mountain chain situated in the

centre o the country: the Serra da Estrela, at 1,991 meters

in altitude, is the highest point. In the archipelagos, the

mountain o 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

ormations (Vouga-Aveiro, bidos, Faro). The capes o thecoastline are ew in number and small in size, but o great

beauty: these are the capes o 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 o extensive reorms were

adopted which had a signicant impact on the level o

economic development and social cohesion (protection

and social inclusion) in Portugal.

The ght against extreme poverty, minimum pensions,the Social Inclusion Income Law, and the Solidarity

Supplement or the Elderly Regulation, were paradigm

measures in social protection.

As or measures relating to social inclusion, the highlight

is the assistance to amilies through care centres,

investment in equipment, including a network o

continuing care or the elderly and dependent persons,

and local intervention to combat poverty and exclusion,

taking into account local requirements and the people

most in need o assistance.

On the continental territory, the Tagus (the longest river)

divides the more mountainous north rom the south with

its plains and lower elevations.


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Demography 2006 2007 2008 2009 2010

Total populationa Thousands 10,586 10,604 10,623 10,638 10,636

Birth rate Per Thousand 10.0 9.7 9.8 9.4 9.5

Lie expectancy at birth Years 78.2 78.5 78.7 78.9 79.2

Education 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Preschool Thousands 262 264 266 275 274

Elementary and secondary Thousands 1,493 1,512 1,537 1,782 1,740

Higher education Thousands 367 377 373 384 396

Public spending on education b % o GDP 6.6 6.1 6.3 6.7 5.0d

Culture 2006 2007 2008 2009 2010

Museums, zoos, botanic gardens andaquariums visitors

Millions 10.3 10.0 11.6 12.9 13.8

Art gallery exhibitions N 6,463 6,609 6,859 7,235 7,231

Publications c N 2,054 1,994 1,896 1,910 1,852

Local government spending on culturalactivities

106 EUR 802.9 802.8 863.8 997.7 721.1

Health 2006 2007 2008 2009 2010

Doctors N 36,924 37,904 38,932 40,095 41,431

Hospitals N 200 198 189 186 226

Hospital beds N 36,605 36,220 35,803 35,635 35,601

Health centres N 378 377 377 375 376

Pharmacies and mobile pharmacy points N 3,037 3,038 3,037 3,046 3,055

Current public spending on health b % o GDP 5.6 5.4 5.5 5.7 5.7d

Inormation Society 2006 2007 2008 2009 2010

Internet subscribers Thousands 1,580 1,612 1,676 1,898 2,104

Access to Internet serviceRate o

Penetration14.9 15.2 15.8 17.8 19.8

Main telephone linesRate o

Penetration/ 100Inhab.

40.0 39.7 39.1 40.8 42.2

Mobil telephone service subscribersSubscribers(thousands)

12,236 13,477 14,953 15,929 n.a.

Penetration rate land line serviceSubscribers/ 100

Inhab.115 127 141 151 155

Cable television subscribers Thousands 1,421 1,489 1,475 1,452 1,438

Penetration rate o cable networkSubscribers/ %

Population13.4 14.0 13.9 13.6 13.5

Share o the communications sectorReceipts/ % o

GDP5.4 5.2 5.1 5.1 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 requency (d) Estimates

Socio-economic indicators


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4. Political and Administrative

Organization

4.1 Political structure

As concerns the political structure, the Portuguese

Republic is a nation ounded on democratic law, based on

popular surage, pluralism o expression and democratic

political organization, respect and the guarantee o

undamental rights and liberties, and on the separation and

independence o powers.

The sovereign bodies are the President o the Republic, the

Assembly o the Republic, the Government, and the Courts.

In the Portuguese constitutional system, the President o the

Republic is elected by direct and universal surage or a term

o ve years and cannot be re-elected or a third consecutive

term. The President o the Republic is the supreme

representative o the Portuguese Republic, he guarantees

national independence, the unity o the State and the

normal unctioning o the democratic institutions, and is, in

eect, the Supreme Commander o the Armed orces.

Among his sovereign powers, the most important are the

dissolution o the National Assembly, the nomination o the

Prime Minister and the other members o the cabinet, the

promulgation or veto o laws and decree laws, the naming o

ambassadors upon government proposal, and the ratication

o international treaties. The current President o the Republicis Anbal Cavaco Silva, re-elected on 23 January 2011.

Legislative powers are vested in the Assembly o the

Republic which is comprised o 230 deputies, elected by

direct universal surage or a term o our years. The last

elections took place on 05 June o 2011.

The Assembly o the Republic has responsibilities at the

political, legislative and scal levels. Among some o its

duties are to approve constitutional changes, approve

the political-administrative statutes o the Autonomous

Regions, approve the State Budget, make proposals to

the President o the Republic concerning whether to hold

reerenda, evaluate the programs o the Government, deal

with tax matters and evaluate activities o the Government

and the Administration.

The Assembly o the Republic can be dissolved by the

President o the Republic ollowing a hearing with the

parties represented in the Assembly as well as the Council

o State.

The current President o the Assembly o the Republic isAssuno Esteves and the distribution o the party seats

is as ollows: Social-Democratic Party (PPD/PSD) 108

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 Let Bloc (BE) 8 deputies.

The Government is the principal body in the Public

Administration and is responsible or setting general policy

or the country. It is composed o the Prime Minister, the

Cabinet and the Secretaries o State.

The Prime Minister, who presides over the Council o

Ministers (Cabinet) meetings, is nominated by the President

o the Republic. The other members o the Government

are nominated by the President o the Republic upon the

proposal o the Prime Minister.The current Prime Minister is Pedro Passos Coelho, leader o

the Social-Democratic Party.

In essence, it is up to the Government to guarantee the

operation o the public administration, to promote the

satisaction o collective needs and guarantee the proper

execution o laws. It also has legislative competencies that

in some cases are its own and in other cases the unction

is shared with the Assembly o the Republic (relative

competence).


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The Courts are the sovereign bodies charged with the

jurisdiction o administering justice. They are independent

and are only subject to the law.

The Portuguese judicial system comprises various categories

or rank o courts, independent among themselves, each

with its own structure and procedures. Only two o these

categories include a Court (the Constitutional Court and

the Court o Audits); the rest include a plurality o courts,

with a hierarchical structure and a superior court at the top

o the hierarchy.

Regionsa Areas (km2) % o total

Alentejo 31,605 34.3

Centre 28,199 30.6

North 21,286 23.1

Algarve 4,997 5.4

Lisbon 3,002 3.2

Azores 2,322 2.5

Madeira 801 0.9

Total 92,212 100.0

Regions (NUT II) determined by areas

Source: INE Portugal Statistical Yearbook, 2010

Note: (a) Includes 362 km2 o interior waterways

The Court o Audits This court not only has

jurisdictional unctions (scalization o legality regarding

public expenditures and judgment o public accounts),

but also expresses its views on the General Government

Budget, with the purpose o enabling the Assembly o the

Republic to render evaluation and judgment.

There could also exist Maritime Courts, Courts o Arbitration

and Justice o the Peace Courts. As or the latter, its

competency relates to exclusively to the evaluation and

judgment o declarative actions whose importance does not

go beyond the jurisdiction o the Court o First Instance.

4.2 Administrative organization

Following accession to the European Community, or

statistical purposes, the territory o Portugal was classied

according to the Nomenclature o Territorial Units

(commonly known as the NUT system rom the French

acronym), to establish similar designations that allow

comparisons with other countries within the European

Union. Portugal is designated NUT I, divided into 7 NUTII units equivalent to regions North Region; Centre

Region; Lisbon Region; Alentejo Region; Algarve Region;

the Autonomous Region o Madeira; and the Autonomous

Region o the Azores.

They in turn are divided into 30 NUT III units equivalent

to sub-regions (28 on the Continent and the two

Autonomous Regions).

The Constitutional Court It occupies a special and

autonomous rank in the order o courts. Its very specic

ormation and unctions make it stand out. It is the court o

recourse relating to decisions o the other courts in matters

concerning constitutionality. It is composed o 13 judges, o

which 10 are designated by the Assembly o the Republic

and three co-opted by them. The judges, who elect the

President o the Constitutional Court, have a nine-year

mandate that cannot be renewed.

The Judicial Courts They are the rst category o

common courts and they have their own hierarchical

structure, with judicial courts o rst and second instance

and the Supreme Court o Justice the topmost body.

The Administrative and Fiscal Courts These courts are

encharged with judgment o actions and recourse destined

to determine the litigation arising rom administrative

and scal aairs. These courts have their own hierarchical

structure, with the Supreme Administrative Tribunal the top

ranking court.


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The Alentejo and the Centre share among themselves the

largest territories in the country, with 34% and 31% o

the total, respectively, the Autonomous Region o Madeira

comprises the smallest area.

According to the NUTS statistical classication, Portugal is

divided into 18 Districts on the Continent and they are the

ollowing: Aveiro, Beja, Braga, Bragana, Castelo Branco,

Coimbra, vora, Faro, Guarda, Leiria, Lisboa, Portalegre,

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 o municipal association1

determined the organization o municipal associations

which can be classied into two types: or multiple ends or

or specic purposes.

The municipal associations with multiple purposes,

denominated intermunicipal communities (CIM), are

comprised o municipalities that correspond to one or more

NUTS III and take those names.

Municipal associations with specic purposes were created

to achieve those common goals o the municipalities that

comprise them, in the deense o collective rights o a sectoral,

regional or local nature. Two metropolitan areas (MA) also

were created: Lisbon which includes the municipality o

Greater Lisbon and the Setbal Peninsula, and Oporto which

includes the municipality o Greater Oporto and the Ente-

Douro and Vouga, regulated by its own charter.

Major cities

It is worth highlighting the importance o cities, both in

terms o geography and politics. There are now (2012)

159 cities in Portugal (146 on the Continent and 13 in the

Autonomous Regions), o 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

repositories o an urban history that is o Roman or Arab

origin or sometimes both, as in the case o the cities in the

South and even Lisbon.

The city o Lisbon (population o about 470,000 2 million

in Greater Lisbon) has been the capital o Portugal since the

twelth century, is the largest city in the country, the main

economic hub, and has one o the largest maritime ports

and the largest airport. The city o Oporto (about 205,000

inhabitants 1.3 million in Greater Oporto) is the second

largest city.

1 Law n 45/2008 o 27 August

Sub-Regions NUT III

Source: INE Instituto Nacional de Estatstica

Note: This division o regions and their subdivisions is based on the NUTS system

(Nomenclature o Territorial Units or Statistics).

North Minho-Lima

CavadoAve

Grande Porto

Tmega

Entre Douro e Vouga

Douro

Alto Trs-os-Montes

Centre Baixo Vouga

Baixo Mondego

Pinhal Litoral

Pinhal Interior Norte

Do-Laes

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

A. R. Azores A. R. Azores

A. R. Madeira A. R. Madeira

Regions o the Continent

Autonomous Regions


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Population o Portugal - 2006-2011 Trends

Source: INE - Instituto Nacional de Estatstica - Employment Statistics - 2011

5. Population

The preliminary results o the 2011 Census, conducted

on the 21st o March 2011, indicate that the resident

population o Portugal consisted o 10,561,614 inhabitants,

which implies an increase o about 2% compared with a

decade ago.

The number o amilies increased by about 10.8% but the

average amily 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. In2011, nearly 19% o the population o Portugal was aged

65 years or older.

According to INE2 , the ratio o 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 o the population under the age o

2 INE - Employment Statistics Employment Survey, 2011

24 years lost out in relative terms, reaching 25.9% in

the same year. In 2011, the total population o Portugal

registered a marginal increase o 0.1%.

According to the central scenario3 o the INE Projections

o the resident population o Portugal, 2008-2060 (at

31 December), the resident population o Portugal will

continue to increase up to 2035 when the population will

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-ths o the Portuguese population is

concentrated in the North Region (which includes the city

o Oporto) and the Lisbon Region. The population decline

in the rural areas o the interior has continued to aect part

3 The central scenario has as its base the resident population in Portugal as o

January 1, 2008 and comprises a group o variables that are considered most probable

considering recent demographic developments.

Unidade 2006 2007 2008 2009 2010 2011

Total population thousands 10,585.9 10,604.4 10,622.7 10,638.4 10,635.8 10,646.7

0-14 years thousands 1,640.4 1,634.9 1,624.6 1,615.0 1,614.4 1,609.5

15-64 years thousands 7,115.8 7,135.0 7,145.1 7,142.6 7,113.7 7,096.6

65 years & over thousands 1,829.7 1,834.6 1,853.0 1,880.7 1,907.7 1,940.6

Male ratio (no. o men per 100

women)(%) 93.8 93.8 93.8 93.8 93.8 93.8

Actual increase (%) 0.22 0.17 0.17 0.15 -0.02 0.10

Level o schooling completed (15 years and older)

Basic (3rd level)no. 6,795.2 6,796.5 6,776.8 6,690.4 6,539.8 6,311.2

(% change) -0.78 0.02 -0.29 -1.27 -2.25 -3-50

Secondary and post secondary

no. 1,249.3 1,245.5 1,250.9 1,324.7 1,416.6 1,518.4

(% change) 2.81 -0.30 0.43 5.90 6.94 7.19

Tertiaryno. 901.0 927.6 970.4 1,008.2 1,065.0 1,207.6

(% change) 6.16 2.95 4.61 3.90 5.63 13.39


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o the North Region (excluding Oporto), the Centre and

above all, the Alentejo.

The population distribution around the territory o the continent

shows a contrast between the coast and the interior o the

country. Its development in the last ew years indicates a greater

concentration o population near the coast and a decline in the

number o residents in the interior regions o the country.

Similar to what was observed throughout the country, in 2011

there was a slight increase in the average population residing in

most o the regions, except or the Alentejo (-0.49%) and the

Centre (-0.21%) which continued to show a declining trend.

IIn analyzing the demographic density o the Portuguese

population according to the various regions o the country,

Lisbon is the clear leader. In second place is Madeira with

about one-third the population density o the rst. The

greatest gap seems to lie in the North Region which, apart

rom having the largest resident population in relative terms,

shows a population density about 5 times lower than that o

Lisbon. Then ollow the Azores, the Centre, and the Algarve

(the latter two are roughly the same), and nally the Alentejo,

with the lowest ratio o inhabitants/km2.

inherent characteristics and its duration. Since 1993,

net migration has been the primary source o Portugals

population growth.

Portugal experienced infows o immigrants rom its ormer

colonies in Arica, rom Central and Eastern Europe,

and more recently rom Brazil, but there were also small

groups o immigrants that originated rom India, China

and Pakistan, as well as rom some other countries o Latin

America and the northern part o Arica.

Economic immigration is a recent phenomenon and

represents a radical change compared with what took place

in the 1960s and 1970s when many Portuguese used to

emigrate in search o a better lie.

Until the 1990s, most o the immigrants to Portugal came

rom Portuguese speaking countries, especially Cape Verde

and Angola. Beginning in 1999, Portugal began to receive

a dierent and massive kind o immigration coming rom

the Eastern European countries, divided into two groups:

the Slavs Ukrainians, Russians and Bulgarians; and the

Latin people rom the east Romanians and Moldavians.

In 2003, this type o immigration ell, having been

substituted by Brazilians and, to a lesser extent, by Asians

o various origins (namely Indians, Pakistanis and Chinese).

In 2010, in Portugal there were 445,2624 citizens o

oreign nationality that had legal residency status,

indicating a decline o 2% rom the previous year. Among

these, 39.7% came rom Europe, 22.7% rom Portuguese-speaking Arican countries, 26.8% were Brazilians, and

lastly, 3.5% were rom China.

The oreign population is much younger than the native

population and comprises mostly members o the active

labour orce. Classied by gender, the men are the larger

component, being the mostly likely to emigrate while their

amily members ollow later and then they tend to provide

a more balanced situation.

4 Data available as o July 2010.

Regional breakdown Annual Average 2010

Regions (a)Population

Thousands

% o

total

Density

(inhab./km2)

North 3,738.8 35.2 176.0

Lisbon 2,835.0 26.7 943.3

Centre 2,379.5 22.4 84.4

Alentejo 751.0 7.0 23.8

Algarve 437.9 4.1 86.9

Madeira 247.6 2.3 308.8

Azores 245.9 2.3 105.7

Total 10,635.8 100.0 115.4

Source: INE Instituto Nacional de Estatstica

Note: (a) Regions based on NUT (Nomenclature o Territorial Units or Statistical purposes)

5.2 Migrations

The contribution o migration to the dynamics o

population growth depends on the interpretation, the


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Concerning Portuguese emigration, at rst there was a

big movement to Brazil that occurred at the beginning

o the past century that lasted until the 1920s, ollowed

by a trend towards Europe that occurred during the

period o the colonial wars in the 1960s. Both were or

periods o long duration. Starting at about the end o

the 1980s, there have been emigration fows that have a

more temporary nature and which continue today. About

4.5 million Portuguese live outside the country, a gure

that is equivalent to nearly hal o the domestic resident

population. Very large communities o expatriates exist in

Brazil, France, Germany, Switzerland, Luxembourg, Canada,

and South Arica, among other countries.

5.3 Active population

Immigration now is helping to sustain the population in

the labour orce, whose rate o growth has not been able

to compensate or the ageing o the population and the

increase in lie expectancy (74 years or men and 80.6

years or women, according to the OECD), a actor which

is aecting not only Portugal, but the vast majority oWestern European countries.

According to INE5 , in 2011 the active population and the

labor orce 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 o 0.7% relative to the prior year, and the labor orce

participation rate remained at 61.3%, or 0.6% lower than

the year beore. The male labor orce participation rate was68.0% and that o emales 55.2%.

This relative stability in the supply o labor resulted rom

a decline in the employed population (141,200) being

compensated or by a similar increase o the number o

unemployed workers (103,500).

By age bracket, there was a drop in the active population

aged between 15 and 34 years o age (-0.8%) while the

bracket comprising those aged between 35 and 64 years

increased 0.36%.

5 INE - Employment Statistics, 2011

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 o active participants in the labor orce who

completed secondary, post-secondary and tertiary education

increased so that in 2011, 18.1% o the active population

had received some orm o higher education.

The employed population totaled 4,837,000 individuals in

2011, corresponding to a decline o 2.8% compared with the

previous year. The employment rate (ages 15 and over) was

53.5%, but below that o 2010, due the working population

having declined more than that o the active age population.

As per NUTS II, only the Alentejo region registered a marginal

increase in the employed population (0.2%).

In terms o the short/medium term, the distribution o

population employed by sectors o activity is relatively

stable. There has been a movement going on or the past

25 or 30 years towards a greater number o people nding

employment in the services sector (62.8% o the total in

2011), a trend that also has been observed in our other

European partners.

5.4 Schooling levels o the active

population

Within the ramework o the demands o the new global

economy, the qualication o persons in the labour orce is

a major actor aecting competitiveness, economic growth,

employment, and possible salary improvement.

Trends in population employed

by sector o activity

1986 2009 2010 2011

(%)

Agriculture, orestryand shing

21.9 11.2 10.9 9.9

Industry, construction,energy & water

33.7 28.2 27.7 27.3

Services 44.3 60.6 61.4 62.8

Source: NE - Employment Statistics, 2011


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As already noted, Portugal shows some not so positive

indicators regarding the education and skill level o its

active population that have been the ocus o public policy

eorts to upgrade qualications in the human resources

area. As noted rom the preliminary 2011 Census results,

an enormous eort has developed concerning this matter.

In the past decade, Portugal once again showed an increase

in the educational level o its population. In 2011, there

were 1,262,449 individuals who had completed a tertiary

education, about double the number noted in 2001.

In February 2012, the European Commission published,

through its Eurydice Network, the report Key Data onEducation in Europe 2012, which presents a series o data

required to achieve policies associated with the Europe

2020 Strategy and analyzes the development o European

educational systems over the last decade6.

Concerning Portugal, we can draw the ollowing conclusion:

in the school year 2009/2010, the percentage o the

population registered as attending educational courses at

any level (rom kindergarten to tertiary) was 22.9%, much

higher than the rate observed in 2000, and also higher than

the EU27 average (21.5%).

The launch o the New Opportunities Program (Programa

Novas Oportunidades) in 2005, based on two undamental

points: to allow the qualication o a million persons

(ocusing on adults) in the active population by 2010, and

expand the number o qualiying proessional courses

(ocusing on youth) at the secondary level in order that

they represent, within the same time rame, hal o the

total oers at the secondary level, occurred as a response

to enable Portugal to reach a similar level o manpower

qualication with the rest o Europe and to strengthen the

countrys competitiveness in the medium and long term, by

investing in the constant improvement in the educational

opportunities o both its young people and adults.

6 The reerence year or the academic data is 2009/2010

According to a report7 rom the Directorate General or

Education and Culture o the European Commission entitled

Further measures to implement the action plan on adult

learning: Updating the existing inventory on validation o

non-ormal and inormal learning: Final report8 , Portugal

together with Finland, France, the Netherlands, and Norway

is one o ve countries classied at the top level (High) in

what concerns the level o development in the validation o

apprenticeship training, both non-ormal and inormal.

This excellent position is due to the development o

the National System o Recognition, Validation and

Certication o Competencies (SRCS), starting with the New

Opportunities Initiative, which is among the policies intended

to reduce the low qualication levels o the adult population.

It is the strategic objective o the Portuguese Government

to continue a strong wager on the proessional ormation

o youth, with the goal o a genuine valorization o the

qualication o the Portuguese people. They expect to

improve their educational and proessional orientation and

promote more rigorous instruction relating to practical

ormation needed in the workplace.

In this context, there is a current appraisal o the New

Opportunities Initiative, to determine the degree o impact

on the proessional lives o people and an examination o the

rigorous and demanding programs o the SRCS9 process.

There will be an announcement by September 2012regarding changes that are to be introduced in the structure

and objectives o the Program. In the meantime, 301 New

Opportunities Centres will be kept unctioning until August

2012, which will allow those enrolled to complete their

certication process.

7 This report assessed the state o the art implementation o measures and policies

designed to validate ormal and non ormal programs in 34 countries, including individual

reports, which are the responsibility o the European Centre or the Development and

Proessional Formation (CEDEFOP) o every country

8 http://ec.europa.eu/education/more-inormation/doc/2010/inventory_en.pd

9 SRCS - System o Recognition, Validation and Certication o Competencies
http://ec.europa.eu/education/more-information/doc/2010/inventory_en.pdfhttp://ec.europa.eu/education/more-information/doc/2010/inventory_en.pdf


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6. Inrastructure networks

With the assistance o European Community Funds during

the past several years, Portugal was able to make a strong

investment eort to improve transport inrastructure and

that has resulted in modern networks o motorways,

railways, airports, and maritime ports.

Although maritime transport continues to be the major

mode o transport in Portugals oreign trade, railway

transport has assumed a growing importance, especially in

connection with European markets.

Vasco da Gama bridge - Tagus River

JosManuel

inrastructure in Portugal and one actor contributing to

this development was the event o the Lisbon Worlds

Fair in 1998. This major project acted as a catalyst or the

construction o 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 o

April Bridge, establishing or the rst time, a continuous

railway link between the northern and southern parts

o the country. These inrastructures contributed in a

signicant way to improve north-south trac and create

new access routes in various parts o the capital, mostly in

the eastern part o the city o Lisbon.

In 2010, over 218 million tons o merchandise were

transported by road, which was predominantly national

trac (90.4%). In regional terms, the Centre and the

North were the regions that accounted or more than

61% o total merchandise transported. The still provisional

data, reerring to the third quarter o 2011, point to a

positive year-on-year change o 12.6% in road transport o

merchandise.

6.2 Railways

The biggest challenge in this area is to strengthen the

integration o the national railway system with the Iberian

and European network, in order to assure the same

operating system as the European and trans-European

railway transport networks.

JosManuel

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

6.1 Roadways

Portugal currently has one o the most developed roadway

systems in all o 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 o IP), the secondary roads (6,482 km

o IC and EN) and the regional roads (4,420 km). With the

inclusion o the Auto-Estradas, they amount to 2,737 km, that

is, more than one-th o the total roadway network. In the

1990s there was a signicant development o roadway


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The ve principal national ports located on the Continent

(Leixes, Aveiro, Lisbon, Setbal, and Sines), moved about

64.6 million tons o merchandise in 2011 (96.7% o the

total). Due to the improvement o inrastructures and the

eciency improvements made over the last ew years, it is

estimated that the national port system will become more

competitive which in turn will allow an increase in reight

movement in the uture years.

The deep water port o Sines, the national leader when it

comes to the quantity o goods moved (25.8 million tons

in 2011, or 38.6% o the total), boasts unique natural

conditions along the Portuguese coast to handle all types

o ships. Endowed with modern terminals it has unequalled

characteristics, being on the one hand the principal gateway

or the countrys energy supply (petroleum derivatives, coal

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 multiaceted

logistics platorm on an international scale (maritime-port,

industrial and logistical), that will count on ull integration

with the urban national platorm o Poceiro and with the

cross-border platorm o Elvas/Caia. The expansion o the

Container Terminal (Terminal XXI) has been completed,

increasing inra-structure capacity to one million TEUs

(measure used or 20-oot containers) per year, compared

with a previous capacity or 250,000 TEU/year.

6.4 Air transport

Portugals air transport system includes a network o 15

airports, 38 airelds and 11 certied 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 certication by INAC the

National Civil Aviation Institute (a process that should be

concluded in 2012). The project regarding the construction o

10 Source: INAC Instituto Nacional de Aviao Civil (National Civil Aviation Institute),

January 17, 2011Port o Sines - Alentejo

C

ma

raMunicipaldeSines

The existing railway network is 2,843 km, o which 2,794 km

with railway trac carrying both passengers and reight. It

serves a population o approximately 8.5 million inhabitants

and assures North-South links along the coastal strip o the

Portuguese continent as well as transversal links. The railway

network density tends to be greater in regions where there

are greater concentrations o population.

In 2010, 9.3 million tons o merchandise were transported

by rail, also indicating a predominance o national trac

(91.7%) and 153 million passengers. According to regions,

the Centre, the Alentejo and Lisbon represented more than

90% o the total merchandise transported by this means.

Preliminary data or the third quarter o 2011 indicate a year-

on-year decline o 10.8% in merchandise transported by rail.

6.3 Ports

The geographical position o Portugal, with an extensive

Atlantic coastline, oers 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 o Greater

Lisbon; Sines, in the Alentejo; Faro and Portimo, in the

Algarve. The Autonomous Region o the Azores has eight

ports and the Autonomous Region o Madeira has three.


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a new international airport or Lisbon, on the southern edge

o the city, in the Alcochete area, has been postponed by the

Government due ongoing unavorable economic conditions.

The act that the autonomous regions are made up o islands

explains the presence there o a larger number o airports, as

can be seen in the ollowing table.

The act that the autonomous regions are made up o

islands explains the presence there o a larger number o

airports, as can be seen in the ollowing table.

6.5 Technological inrastructures

In the last ew years, inrastructures relating to the

telecommunications sector were substantially improved and

modernized, allowing Portugal to stand in a comortable

spot among its European partners. In this area there are

three types o systems: a voice system (xed line telephone

and mobile); data services (Internet access) and video

service (TV signal), and three types o networks: traditional

xed network, mobile network and TV distribution by

satellite, cable and other radio-electric means.

The deregulation o xed and mobile networks and

the entry o new telecommunications operators in the

Portuguese market increased competition, improved quality

and reduced rates charged.

With the arrival o third generation mobile networks,

Internet access in broadband and TV distribution were

made available to mobile network clients. Within the EU

at the end o 2010, Portugal was the country with the

sixth highest broad band penetration > 10 Mbps in its

population (15%) and had the seventh highest penetration

o active mobile broad band (eective use in the last three

months) among the population (38%).

In Portugal at the present time, the satellite networks are or

the most part utilized to oer services or TV distribution.

According to ANACOM11, the penetration rate or access

to broad band Internet at the end o 2010 was 19.5%

per 100 inhabitants or xed network access and 24.1%

per 100 inhabitants or access to mobile networks with

eective use. In the case o xed access, the broad band

penetration rate was two percentage points above that

registered at the end o the previous year. This growth

was greater than that recorded in the OECD countres by a

dierence o 0.3 percentage points.

It can also be estimated that at least 86% o households

and 59% o residences in Portugal have at their disposal at

11 Based on the conclusions contained in the document published by the European

Commission Digital Agenda Scoreboard 2011

Main Portuguese airports

Airports Number Location

Continent 4 Lisbon, Oporto, Faro and Beja

A. R. Azores 9Ponta Delgada, Santa Maria,Horta, Flores, Corvo, Graciosa,Pico, So Jorge, Terceira

A. R. Madeira 2 Funchal and Porto Santo

Most international airlines serve the principal airports o the

country. TAP Portugal is the Portuguese national air carrier.

In 2010, the number o passengers passing through

national airports increased 8% over the year beore,reaching a total o 26 million. In the same year, air reight

transport trac also registered a considerable increase

(+11.3%, +14,000 tons) due to the excellent perormance o

the Lisbon and Porto Airports. The Azores also contributed to

the positive trend with trac o nearly one thousand tons. An

analysis o reight unloaded (imports) and uploaded (exports)

indicates that export reight increased by much more and was

primarily responsible or the good overall perormance o air

reight transport.

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 th best on a world scale in

the category representing airports handling trac o between

two and ve million passengers.

The John Paul II Airport in Ponta Delgada (Azores) also won

the ACI prize or being the European airport that registered

the most signicant increase in Quality o Service indicators

between 2008 and 2009.


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least access to installed high speed, although geographical

distribution is not homogenous and is concentrated in the

Lisbon and North regions.

The combinations o services most used by the residential

population reer to the exclusive use o STM (15%) and to

the our electronic communication services in simultaneous

use (14%), in particular, mobile phone, xed-line phone, xed

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 rom higher subscription to triple

play packages (F+I+TV). Moreover, it should be noted that

98% o individuals who have Internet access in their homes

also have access to STM.

In the case o business clients12 there is a trend towards

an increase in the number o services, consistent with the

growth in the size o the business. Among large businesses,

the number o services used is three or greater, with the

prevalence o telephone services and access to xed and

mobile Internet (M+F+FBB+MBB).

Small and medium sized companies (SMEs) also show a

high degree o relative penetration o this type o services

combination. The most commonly used combination

includes xed and mobile phone services, together with FBB

(M+F+FBB), but the double play package comprised o STF

and the Internet predominates.

Microenterprises stand out because they present a totally

dierent prole o combinations with the prevalence o STF,

particularly or exclusive use, but also together with STM or

FBB, as well as the exclusive use o STM.

The population residing in Greater Lisbon and Greater

Oporto stand out with regard to the greater intensity o

integrated consumption o our services (M+F+FBB+TV),

being that the residents o Greater Lisbon also tends to

12 According to ANACOM, or SMEs the analysis was conducted through the

Consumer Survey o Electronic Communications SME o December 15, 2010. For large

companies the analysis was based on the Consumer Survey o Electronic Communications

large companies, o December 2009. The services considered were the same as or

individual clients.

have a high consumption o a combination o ve services

(M+F+MBB+FBB+TV).

Use o STM together with MBB tends to be more prevalent

in the northern regions o 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 o telephone service (xed and mobile).

It is important to note that these regional dierences are

aected by the geographical availability o services, and

thus do not necessarily refect consumer preerences among

the various geographical areas. On the other hand, given

that the great majority o the Portuguese population resides

in the Interior North, Greater Lisbon, Coastal North and

Coastal Centre regions, the type o 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 o a new technology, namely the

digital land signal which replaced the analog land signal

or television transmission, applicable to all those not

subscribing to pay television.

There is an important campaign to bring people closer to

the new technologies (including Internet) and an eort by

the public sector to make available various kinds o services

electronically, aiming to acilitate engagement by citizens

and businesses.


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According to the eGov Benchmark 2010 Report, or the

second consecutive year Portugal occupies rst place in the

European rankings or the availability and sophistication o

Online Public Services. Within the ramework o the Digital

Agenda or Europe, by 2015 the European Union intends to

achieve its goal o making one out o every two citizens and

our out o every ve companies use online services or public

administration matters.

6.6 Policies or the uture

Within the scope o commitments undertaken in theMemorandum o Understanding, the Government in the

State Budget or 2012 dened as top prorities or the

transport sector the introduction o structural reorms that

are nancially viable, and will develop policies promoting the

mobility o persons and goods, promote greater cohesion and

review o the States role in providing transport services.

In the air transport sector there will be reorganization o the

system and the privatization o ANA that will be determined

along the lines o the privatization model set in the example

o TAP. These processes are expected to be completed by

year-end 2012.

In the maritime-port system, the integration o 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 or the railway sector, the privatization o CP Cargo is

expected to be completed by the end o 2012 and railway

use will be promoted or the transportation o exports. In this

situation, investments were planned with the intention o

obtaining synergies with port and logistical activities, whilehaving recourse to European joint participation in trans-

European projects as much as possible.

In the communications sector, the measures that are to

be taken ocus on improving the operation o the market,

strengthening competition and promoting eciencies.

In accordance with the execution o the third postal

directive, market liberalization policies are planned in the

postal sector together with preparations or the denitive

privatization o the CTT by the end o 2012. In the electronic

communications sector, there will be policy continuity

to strengthen competitition, with particular attention to

introducing the ourth generation mobile in the market.

Optic bber


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7. Resources and Productive Structure

In the past ew decades, Portugal, not unlike its European

partners, saw its economic development become increasingly

based on services. At the present time, this sector accounts

or 62.8% o employment and 74.5% o gross value added

(GVA), whereas the agricultural sector only provides 9.9%

o employment and contributes merely 2.1% o GVA.

Industry, construction, energy, and water represent 27.3% o

employment and 23.3% o GVA.

Gross Value Added by Sectorso Economic Activity

Source: IINE National Accounts by economic secotor at current prices; Eurostat

Employment by Sectorso Economic Activity

Source: INE Employment Statistics 2011; Eurostat Calculations based on hours worked

Regional Gross Value Added by Sector o Economic Activity in 2010

Source: INE Instituto Nacional de Estatstica National Accounts (preliminary data)

Agriculture, orestry and shing

Industry, construction, energy and water

Services

Agriculture, orestry and shing

Industry, construction, energy and water

Services

2011 20112010

Portugal EU27

2009 2011 20112010

Portugal EU27

2009

Agriculture, grazing, hunting,orestry, shing

Mining;manuacturing; electricity; gas; water;sanitary, waste management and depollution

Construction Services

Portugal North Centre Lisbon Alentejo Algarve A.R. Azores A.R. Madeira


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As or the regional distribution o GVA, in 2010 (preliminary

data) the services sector dominated productive activity in

all seven Portuguese regions. The contribution o 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.

As or the contribution to GDP o each sector o economic

activity, the Economist Intelligence Unit (EIU) calculates

that in 2011 services accounted or 74.8% o GDP which

represents an increase o almost 20% compared with

2000. Industry, including the energy sector, in the past ew

years has been declining as a share o GDP (more than

one-ourth in the last 10 years). Over the same period,

agriculture saw its share decline by less than hal.

The agricultural sector has undergone several structural

adjustments, namely the increase in the area and number

o arms 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

towards greater proessionalism and multiunctionality in

domestic agriculture.

The total arm area corresponds to 50% o national

territory and small holdings continue to predominate, with

more than two-thirds o all arms consisting o under ve

hectares.

The permanent agricultural plantings, especially vineyards

and olive groves, are ound primarily in the interior o

the country, rom North to South, whereas orest areas

are located primarily in the area rom the Centre to the

continental coastline o Portugal. In the Azores, about

95% o agricultural land under cultivation is given over to

pastures, meadows, and grazing areas and in Madeira 77%

o this land is devoted to permanent crops.Agricultural activity is subject to a signicant amount o

volatility as a result o elevated exposure to both economic

and climatic elements.

By conducting an analysis o the structure o agricultural

production and the dynamics o development over the

period 2000-2010, and in particular 2009-2010, the most

important component is the production o vegetable

products (57.6% versus 31.7% or animal production); the

concentration o production in our sectors, three o which

belong to the rst group (horticulture, ruits and wine) and

animal products (milk); the relative loss in importance o

cereals due to the sharp drop in production volume; the

growing importance o horticulture products, with 20.5%

o production in 2010, ollowed immediately by wine and

ruits and the growing dynamics o animal production, in

aggregate terms.

In vegetable production, it is estimated that the most

signicant decline is likely to come rom vegetables and

horticulture products and wine. As or animal production,

Productive Structure - Share o GDP

7.1 Agriculture, orestry and shing

Agriculture

Despite the reduced role o this sector in the overall

economy during the past ew decades, (in 1980

agriculture accounted or 11% o GVA in nominal terms

whereas in 2011 it represented only 2.1%, including

orestry and shing), this sector still provides signicant

employment opportunities in Portugal (9.9% o the total).

Agriculture,

orestry and

shing

2000 2009 2010 2011a

Industry (including

construction &

energy)

Services

Source: EIU Economist Intelligence Unit Viewswire (February 15, 2012)

Notes: Based on GDP at actor cost; a) Estimates


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there is likely to be an increase in value terms rom cattle

raising (+16%) and milk production (+11%).

A series o measures have been taken within the context o

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 o this sector.

Organic farming

In 2010, according to IFOAM13, there were 37 million

hectares (ha) devoted to organic arming. Europe was the

region that registered the highest increase in organic arming

areas in 2010 (+9% over 2009) or a total o 10 million

hectares, Asia saw its organic area decrease over the same

period. With regard to the types o organic arming, cereals

are the dominant crop while coee is the principal product

among permanent crops.

One third o the worlds total area devoted to organic arming

is located in Oceania (33%), ollowed by Europe (27%) and

Latin America (23%). By countries, Australia has the largest

concentration o organic arming (12 million ha) ollowed

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 o agricultural acreage

devoted to organic armeing (27% and 20%, respectively).

Globally there are about 1.6 million organic armers, and they

are primarily concentrated in developing countries.

For the same year, the consumer market or organic products

represented nearly 44.5 billion euros, which showed an

increase o approximately 8% compared with the year

beore. The United States is at the top o the list with

consumption o 20.2 billion euros, while in Europe, Germany,

France and the United Kingdom accounted or about 60%

o organic arm crop consumption in that area. The countries

with the highest per capita consumption, over 140 euros, are

Denmark and Switzerland.

13 IFOAM International Federation o Organic Agriculture Movements The World

o Organic Agriculture, Statistics and Emerging Trends 2011. Data cover 160 countries

and reer to the year 2010.

In Portugal, since the beginning o the 1990s there has

been an exponential increase in organic arming, both in

terms o area o production as well as in the number o

armers who have converted their holdings to this type

o arming. Between 2000 and 2010 the area devoted

to organic arming rose by 50,000 hectares to 210,981

hectares and the number o producers increased rom

763 to 2,464. In terms o types, pastures dominate with

142,000 hectares. They have a signicant presence in the

Alentejo, ollowed by olive groves with 17,000 hectares

and they are ound predominantly in the Alentejo, Trs-os-

Montes and Beira Interior regions.

The raising o animals has also shown a signicant increase,

both in terms o their number as well as in the number

o ranchers. In terms o 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 prole o the typical organic armer14, in general terms,

is mostly that o a young person, mostly between the ages

14 Source: Produo Agrcola Biolgica (Orgnica) em Portugal: Evoluo, Paradoxos

e Desaos (Organic Agricultural Production in Portugal: Development, Paradoxes and

Challenges).

The 10 countries with the highest growth in

organic arming in 2010

Source: FIBL IFOAM 2012 Survey Unit: Thousand hectares

France

Poland

Spain

Bolivia

Turkey

Czech Rep.

Portugal

Sweden

Germany

Macedonia

+71,105.1

+33,790.2

+43,587.0

+47,169.0

+49,594.0

+49,795.0

+57,951.3

71.105,1 +125,897.8

+154,908.0

+167,929.0

20 40 60 80 100 120 140 160 1800


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o 40 and 49. These persons tend to be university educated

or hold proessional training in the eld, they are mostly

recent arrivals to organic arming, they are motivated by a

desire to protect the environment (land conservation) and

improve health (through healthier eating). More than hal

o all producers are also involved with activities linked to the

sector such as the sale o organic products and/or the actors

o production, processing, consumer awareness, promotion

and marketing. There is considerable variety in the scale o

arms, although medium and large arms predominate. As a

general rule, mixed cultivation is practiced, although animal

production is the most common.

On February 8, 2012 changes were approved to the

Community Regulation15 that introduced practices or

winemaking in accordance with the organic production

model (MPB) which will allow European wine producers

to bring to market a dierentiated product produced in

this manner rom the vine to the wine. There are about

400 organic grape producers nationally in an area o

about 2,600 hectares (th largest in Europe) o which

128 produce wine grapes. The expansion o regulations

concerning wine production presages a strong expansion

o activity, bearing in mind that at present there are only

15 wine producers who are trained to operate using this

method o production. The new regulations will go into

eect starting with the next wine harvest (August 1, 2012).

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 o the Estate

o the same name in Serpa (Alentejo) and Acushia

produced in Quinta do Prado, in Vila Flor Trs-os-Montes,

that were awarded a prize or quality at the 2012 BIOFACH

Fair which is considered the most important European

organic arming air.

As o 1 July 2010, it became obligatory in the EU to use the

Eurolea logo that complies with applicable norms on

15 Reg. (CE) 889/2008, o the European Commission

all prepackaged organic products that are produced in al l

member states. For imported products its use is optional.

Forestry

The importance o orests and the orestry sector in

Portugal is unquestionable. This is due to large areas

covered by orests; to the relevance o its economic,

environmental, social, and cultural importance; to its

importance in the manuacturing industry that is based

on a renewable, natural resource; to the assurance o

the existence o recyclable and reusable products that

generate employment and protability; and even by

the large number o agents involved in the production,

transormation and commercialization o orest products.

Forests occupy about 38% o the national territory

(3.54 million hectares), they represent dierent rates o

arborization according to the regions o the country and

Portugal has the 12th largest orest area in the EU. Portugal

also has a signicant protected orest area (about 20% o

the total), and orms an important part o the Nature 2000

Network (27%).

There are many species that comprise the orests o

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 or more than 70%

o the orest area.


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The pine tree is the one orest species that covers the

largest area (mostly in the Centre region and the Coastal

North o the country) and is the main sustenance or

logging and agglomerates. The cork tree occupies a

territory that is equal to about 25% o its natural global

distribution. The economic importance o this species is

refected in the act that Portugal is the worlds oremost

manuacturer o cork products, in particular bottle corks.

The eucalyptus is also an important element ound in the

Portuguese countryside. Besides its exceptional properties

that are useul or the production o quality wood pulp,

its growth cycle gives it importance rom an economic

standpoint. This act, together with the development o

a dynamic industrial sector, was responsible or a rapid

increase o its importance in the last three decades,

including the development o the cellulose industry and o

the private sector.

In the Azores, more than 64% o the orest area is covered

by incense and natural vegetation, with criptomria

representing more than 60 % o orest production.

In Madeira, 32% o orest space is covered by the laurissilva

species and the remaining area is occupied by exotic species

(eucalyptus, pine and others).

In economic terms, the orest sector (silviculture and the

wood and cork industries, urniture, wood pulp, paper

and cardboard and graphic arts) accounts or about

5% o national GVA, 14% o GDP and 5% o industrial

employment.

Fishing

The need to preserve existing resources and maintain the

economic viability o the shing industry is one o the top

priorities o this sector.

In Portugal there are 45 ports o registry (captaincy and

maritime delegations) o which 32 are located on the

Continent, 11 in the Autonomous region o the Azores and

two in the Autonomous Region o Madeira. In 2010, there

were 16,920 shermen registered, a decline o 2.8% rom

the year beore that aected all regions. The national shing

feet was virtually unchanged both in number o 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 o vessels registered

(24% o the total) and the largest gross overall gauging

(39% o the total), due to the signicant number o oshore

shing vessels registered in that region.

During 2010 a total o 166,304 tons o sh were caught,

unloaded as resh or rerigerated in bulk, representing

an increase o 15% in volume caught and o 6.7% in

corresponding value.

This increase was attributable to a larger catch o marine

sh, especially species such as tuna, mackerel and sardines.

Mollusks too increased, primarily due to the larger volume

o octopuses caught. There was a sharp decline o 24% in

the volume o crustaceans due to the reduced number o

shing licenses authorized or Guinea-Bissau.

The Centre and the Algarve remained the main regions or

sh unloaded, contributing 27.5% and 20.4%, respectively,

to the total value o sh unloaded in domestic harbors. They

were ollowed by the regions o Lisbon with 14.9%, the

North and the Azores (14.6% each).

Although the country enjoys natural conditions avorable to

the development o aquaculture, its output has been less

than expected, accounting or only a slight share in the total

production o the sector. Salt water and brackish output

continues on an upward trend.

The most important sh 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%) o national aquaculture output.

The adverse economic situation, the reduced wager in

diversication, product certication and production process,

may have contributed to the disappointing progress

experienced by Portugal in this sector.


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7.2 Industry

Mining

The development o the mining industry (mining, quarrying

and water) shows a sharp alteration experienced by the

subsector mines, due to the extraction o concentrates o

copper and tin in the mines o 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 or being the major employer in the region o

Castro-Verde-Almodvar (more than 800 workers) and

contributes in a signicant manner to the high level o

regional GDP. Also located in this region are the recently

reactivated mines o Aljustrel. It is expected that they will

have an annual production o 700,000 tons o copper, and

other minerals in smaller shares, such as silver, selenium

and indium.

In terms o relative importance, the Centre Region ollows.

It is where the second most important mining operation

in the country is located the Panasqueira mine, whichproduces the mineral wolram.

Ferro-magnesium, tin, titanium, wolram, copper, uranium,

quartz, talcum, and kaolin are the products extracted,

among others, rom mines in operation. The strong

points o this secto

Documents

PORTUGAL - COUNTRY PROFILE [AICEP - 2012]