Location: Southwestern Europe, bordering the North Atlantic Ocean, west of Spain.
Geographic Area: 92,391 sq. km., including the Azores and Madeira, slightly smaller than Indiana.
Climate: Maritime temperate, cool and rainy in north, warmer and drier in south.
Time Zone: Portugal is one hour ahead of Greenwich Mean Time and six hours ahead of U.S Eastern Standard Time.
Major Cities: Lisbon (capital, pop. 1.9 million), Oporto (1.7 million), Faro.
Population: 10 million (July 2001 est.)
Ethnic Groups: Homogeneous Mediterranean stock; citizens of black African descent who immigrated to the mainland during decolonization number less than 100,000.
Languages: Portuguese. English is a widely spoken second language in Portugal. American business travelers generally can conduct their meetings with business and government contacts in English.
Workweek: The workweek is 9:00 a.m. to 5:00 or 5:30 p.m., Monday through Friday. Lunch is from noon to 2:00 p.m. Try to avoid appointments between noon and 3:00 p.m. Shops are open Monday to Friday, 9:00 a.m. to 1:00 p.m. and again from 3:00 to 7:00 p.m.
Type of Government: Parliamentary democracy.
Head of State: Prime Minister Antonio Manuel de Oliviera Guterres (since October 28, 1995), President Jorge Sampaio (since March 9, 1996).
Currency: Portuguese escudo (PTE) and euro (EUR). The EU introduced the euro as a common currency now being used by financial institutions in Portugal at a fixed rate of 200.482 Portuguese escudos per euro. The Euro will replace the escudo for all transactions on January 1, 2002.
Exchange Rate: U.S. $1 = 224.95 escudos or 1.122 Euros (December 7, 2001).
Current Economic and Political Conditions: The Portuguese economy is thriving, with a record high stock market, low unemployment, and impending introduction of the Euro.
Since its entry into the European Community in 1986, Portugal has undergone a significant transformation. Portugal has successfully leveraged well-managed EU infrastructure funds into strong economic growth, low inflation and substantial new foreign investment in productive capacity. Portugal has moved its standard of living closer to that of its EU partners. GDP per capita on a purchasing power parity basis rose to over 70 percent of the EU average in 1997, from just over half of the EU average in 1986.
The government is working to reform the tax system, to modernize capital plant, and to increase the country’s competitiveness in the increasingly integrated world markets. Growth is expected to fall off slightly in 2001.
Imports and exports expanded rapidly during the 1990s. Exports flourished as Portugal benefited from the EU open market. The rise in imports highlights strong Portuguese demand for foreign goods. From 1998 to 1999, U.S. exports to Portugal increased from $888 million to $1.091 billion, a 23 percent increase. The growing influence of both imports and exports show the rapid integration of Portugal into the global economy. U.S.- Portuguese trade is relatively small, with the U.S. exporting $1.05 billion worth of goods in 1999 and importing $1.2 billion. While total Portuguese trade has increased dramatically over the last ten years, the U.S. percentage share of both exports and imports has declined.
Bilateral relations between the United States and Portugal are excellent, characterized by shared democratic values and similar foreign policy perspectives. The approximately two million Americans of Portuguese descent strengthen the ties between the two countries. A charter member of NATO, Portugal is a strong proponent of vigorous bilateral and U.S.- EU transatlantic ties and of active American involvement in European security affairs.
