Portugal Facts and Figures

Portugal, a coastal nation in Southwestern Europe, is renowned for its historical significance, vibrant culture, and evolving economy. With its Atlantic Ocean coastline, Portugal enjoys a strategic position for global trade and tourism, sharing the Iberian Peninsula with Spain. Its location, rich maritime history, and unique culture have established Portugal as a bridge between Europe and the wider Atlantic world.

Lisbon, the Portuguese capital, stands as a bustling center of commerce and culture. Known for its stunning architecture, rich artistic heritage, and thriving technology sector, Lisbon represents both Portugal’s historical allure and its ambitions as a modern, dynamic European capital.

Demographics of Portugal

Portugal has a population of approximately 10.5 million (2023), with a population density of 113 people per square kilometer. Its population is aging, with a median age of 46 and a working-age population of 63.9%, underscoring challenges in sustaining a younger workforce. An urbanization rate of 67.9% indicates a trend toward city life, with the country’s urban centers growing steadily. While population growth is positive at 1.1%, Portugal’s low fertility rate of 1.4 signals longer-term demographic challenges. The average life expectancy of 82 years highlights Portugal’s high standards of healthcare and quality of life.

Economic Profile

Portugal’s economy, with a GDP of $287 billion (2023), ranks 48th globally and grew by 6.8% in 2023, reflecting a strong post-pandemic recovery. Services dominate the economy, accounting for 66.1% of GDP, while industry contributes 18.6%, supported by a robust manufacturing sector at 12.2% of GDP. Agriculture, while small at 1.9% of GDP, remains a traditional element of the Portuguese economy. Inflation rates moderated from 5.3% in 2023 to a projected 2.2% in 2024, creating a more stable environment for businesses and consumers. Portugal’s trade shows a deficit of $29.6 billion, with exports at $83.9 billion and imports totaling $113.5 billion, underscoring the importance of bolstering domestic production. Unemployment is 6.5% (2023), reflecting stable labor conditions.

Public Finance and Fiscal Policy

Portugal’s fiscal management reflects its commitment to economic stability amid high public debt. The government’s fiscal position improved, shifting from a deficit of -0.32% of GDP in 2022 to a surplus of 0.96% in 2023, demonstrating sound financial policies. However, Portugal’s debt remains high, with general government debt at 116.05% of GDP (2022) and central government debt at 118.77% of GDP. This debt burden underscores the importance of sustainable fiscal policies as Portugal works to balance economic growth with debt reduction.

Security and Defense Investment

Portugal invests in regional and global security, with military spending at 1.4% of GDP in 2022 and approximately 33,000 active personnel. As a NATO member, Portugal plays a role in European defense and stability while maintaining its commitment to international security obligations.

Conclusion

Portugal’s balanced economy, cultural wealth, and strategic Atlantic location offer considerable opportunities for businesses. Market research in Portugal is essential for understanding its diverse economy, consumer behavior, and regulatory landscape. With a dynamic services sector, an evolving industrial base, and increasing international investment, Portugal stands out as a strategic entry point to the European market and a compelling destination for global enterprises.