Economic Overview
Portugal has become a diversified and increasingly service-based economy since joining the european community in 1986. over the past two decades, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. the country qualified for the european monetary union (emu) in 1998 and began circulating the euro on 1 january 2002 along with 11 other eu member economies. economic growth had been above the eu average for much of the 1990s, but fell back in 2001-07. gdp per capita stands at roughly two-thirds of the eu-27 average. a poor educational system, in particular, has been an obstacle to greater productivity and growth. portugal has been increasingly overshadowed by lower-cost producers in central europe and asia as a target for foreign direct investment. the budget deficit surged to an all-time high of 6% of gdp in 2005, but the government reduced the deficit to 2.6% in 2007 - a year ahead of portugal's targeted schedule. nonetheless, the government faces tough choices in its attempts to boost portugal's economic competitiveness while keeping the budget deficit within the eurozone's 3%-of-gdp ceiling.
Environmental Issues
Soil erosion; air pollution caused by industrial and vehicle emissions; water pollution, especially in coastal areas
Government Type
Republic; parliamentary democracy
Population
10,676,910 (july 2008 est.)
Location
Southwestern europe, bordering the north atlantic ocean, west of spain
Area
Total: 92,391 sq km
land: 91,951 sq km
water: 440 sq km
note: includes azores and madeira islands
Slightly smaller than indiana
Country Aliases
Conventional long form: portuguese republic
conventional short form: portugal
local long form: republica portuguesa
local short form: portugal
Capital
Name: lisbon
geographic coordinates: 38 43 n, 9 08 w
time difference: utc 0 (5 hours ahead of washington, dc during standard time)
daylight saving time: +1hr, begins last sunday in march; ends last sunday in october
Military Service
18 years of age for voluntary military service; compulsory military service ended in 2004; women serve in the armed forces, on naval ships since 1993, but are prohibited from serving in some combatant specialties; reserve obligation to age 35 (2007)
International Disputes
Portugal does not recognize spanish sovereignty over the territory of olivenza based on a difference of interpretation of the 1815 congress of vienna and the 1801 treaty of badajoz
Sources: Central Intelligence Agency (CIA)
