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Membership in the European Union (EU) contributed to stable economic growth, largely through increased trade ties and an inflow of funds to improve the country's infrastructure. After a recessionA recession is usually defined in macroeconomics as a fall of a country's Gross National Product in two successive quarters. This is a simplified version of that of the business-cycle dating committee of the National Bureau for Economic Research, a U. in 19931993 is a common year starting on Friday and marked the Beginning of the International Decade to Combat Racism and Racial Discrimination (1993-2003 Events January January 1 Czechoslovakia divides. Establishment of independent Slovakia and Czech Republic., the economy grew at an average annual rate of 3.3%, well above EU averages. In order to qualify for the Economic and Monetary Union (EMU), Portugal agreed to cut its fiscal deficit and undertake structural reforms. The EMU brought to Portugal exchange rate stability, falling inflation, and falling interest rates. Falling interest rates, in turn, lowered the cost of public debt and helped the country achieve its fiscal targets.

Household debt has expanded rapidly. The European CommissionThe European Commission (formally the Commission of the European Communities is the executive of the European Union. Its primary roles are to propose and enact legislation, and to act as 'guardian of the treaties' which provide the legal basis for the EU., OECD, and others have advised the Portuguese Government to exercise more fiscal restraint. Portugal's public debt exceeded 3% of GNP in 20012001 is a common year starting on Monday (see link for calendar), and also: The International Year of the Volunteer The United Nations Year of Dialogue Among Civilizations Events January January 1 A black monolith measuring approximately nine feet tall ap, the EU's self-imposed limit, and left the country open to either EU sanctions or tighter financial supervision. The overall rate of growth slowed in late 2001 and into 20022002 is a common year starting on Tuesday (see link for calendar). 2002 was the first palindromic year since 1991 and the last until 2112. 2002 was also designated: International Year of Ecotourism and Mountains National Science Year in the United Kingdom, making fiscal austerity that much more painful to implement. Portugal will be forced into greater self-sufficiency when EU funds are likely to be discontinued in 20062006 is a common year starting on Sunday (see link for calendar). It has been designated: The International Year of Deserts and Desertification Predicted events January 9 Planned launch date of New Horizons February 28 Mardi Gras February 9 Independence r. In addition, EU expansion into eastern Europe also will erase Portugal's key competitive advantage, low labour costs.

Portugal's economy is based on traditional industries such as textiles, clothing, footwear, cork and wood products, beverages (wine), porcelain and earthenware, and glass and glassware. In addition, the country has increased its role in Europe's automotive sector. Services, particularly tourism, are playing an increasingly important role in the economy.

Portugal has made significant progress in raising its standard of living to that of its EU partners. GDP per capita on a purchasing power parity basis rose from 51% of the EU average in 19851985 is a common year starting on Tuesday. Events January events January 1 Creation of the Internet's Domain Name System. January 17 British Telecom annouces they are going to abolish the famous red telephone boxes. January 23 A debate in the House of Lor to 78% in early 2002. Unemployment stood at 4.1% at the end of 2001, which is low compared to the EU average. Real wages are flexible, but high social costs and severance packages raise fixed labour costs and make new job creation difficult.

GDP: purchasing power parity - $182 billion (G$) (2002 est.)

GDP - real growth rate: 0.8% (2002 est.)

GDP - per capita: purchasing power parity - 18,000 $ (2002 est.)

GDP - composition by sector:
agriculture: 3.6%
industry: 28.7%
services: 67.7% (2002 est.)

Population below poverty line:< NA%

Household income or consumption by percentage share:
lowest 10%: 3.1%
highest 10%: 28.4%

Inflation rate (consumer prices): 3.7% (2002 est.)

Labour force: 5.1 million (2000 est.)

Labour force - by occupation: services 60%, industry 30%, agriculture 10% (1999 est.)

Unemployment rate: 4.7% (2002 est.)

Budget:
revenues: 45 G$
expenditures: 48 G$, including capital expenditures of NA G$ (2001 est.)

Industries:

Industrial production growth rate: 1.5% (2002 est.)

Electricity - production: 44.32 TWh (2001)

Electricity - production by source:
fossil fuel: 64.5%
hydro: 31.3%
nuclear: 0%
other: 4.2% (1998)

Electricity - consumption: 41.48 TWh (2001)

Electricity - exports: 3.479 TWh (2001)

Electricity - imports: 3.743 TWh (2001)

Agriculture - products:

Exports: 25 G$ (f.o.b., 1998)

Exports - commodities: clothing and footwear, machinery, chemicals, cork and paper products, hides

Exports - partners:

Imports: 39 G$ (f.o.b., 2001)

Imports - commodities: machinery and transport equipment, chemicals, petroleum, textiles, agricultural products

Imports - partners: EU 74.2% (Spain 26.5%, Germany 13.9%, France 10.3%, Italy 6.7%, UK 5%), US 3.8%, Japan 1.9% (2001)

Debt - external: 13.1 G$(1997 est.)

Economic aid - donor: ODA, 271 M$ (1995)

Currency: 1 euro (Esc) = 100 eurocents (local denomination: cêntimos)

Exchange rates: euros per US dollar year-end - 0.7962 (2003) 0,9520 (2002), 1.1242 (2001), 1.0608 (2000), 0.9939 (1999), 0,8573 (1998)
note: on 1 January 1999, the EU introduced a common currency that is now being used by financial institutions in some member countries at a fixed rate of 200.482 escudos per euro; the euro will replace the local currency in consenting countries for all transactions in 2002.

Fiscal year: calendar year