CURRENCY & ECONOMICS
The currency unit is the Euro.
Currency regulations
Importation of foreign currency, gold
and gold coins is free and unlimited. Banknotes more that $ 1000 (U.S.)
must be declared at customs.
Economy
Portugal's accession to the European Union was an historic landmark in
the development of the Portuguese economy. There has been a progressive
opening of the Portuguese economy to the outside world since 1988 with
the attendant increase in the average growth rate of GDP as the result
of increases in consumption, investment, public expenditure and exports.
The increase in consumption is due to greater supply and greater purchasing
power. Direct foreign investment contributed greatly to the increased
investment. Public expenditure grew with the structural funds whilst exports
increased due to the greater openness of the European markets.
Portugal is an upcoming capitalist economy with a per capita GDP two-thirds
that of the four big West European economies. The country qualified for
the European Monetary Union (EMU) in 1998 and joined with 10 other European
countries in launching the euro on 1 January 1999. The year 2000 was marked
by moderation in growth, inflation, and unemployment. The country continues
to run a sizable trade deficit. 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. Improvement in the education sector
is critical to the long-run catch-up process.
Portugal's prime agriculture products include wheat, corn, barley, sugar
beets, olives, tomatoes, wine, tobacco, potatoes, beef and dairy products.
Export commodities include clothing and footwear, machinery, chemicals,
cork and paper products, hides to either Germany, Spain, France, UK, Netherlands,
Benelux, Italy, UK, or the USA.
Import commodities include machinery and transport equipment, chemicals,
petroleum, textiles, agricultural products to either Spain, Germany, France,
Italy, UK, Netherlands, US or Japan.
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