Portugal's economy is a dynamic blend of traditional industries and modern sectors, positioning itself as a thriving hub in Southern Europe. With a rich history of maritime trade and a strategic location, Portugal has evolved into a resilient economy marked by innovation, tourism, and a commitment to sustainable growth.
Economy of Portugal: ranking in 2022 and 2023
The economic vitality of a nation is often encapsulated in its gross domestic product (GDP), representing the total value of goods and services traded. Globally, the average GDP per capita stood at approximately $12,703 in 2022. In contrast, Portugal exhibited a GDP per capita of $24,515 or a total GDP of $255.20 billion for the entire country, securing its position as the 51st largest economy worldwide. When adjusted for purchasing power parity (PPP), a measure considering relative price levels, Portugal ranks 44th among the world's wealthiest nations.
In 2022, Portugal experienced an inflation rate of around 7.83%, a figure comparatively lower than the European Union average of 8.83% and the United States' 8.00%.
Looking back at 2023, the nominal GDP experienced a substantial increase of $276.432 billion, propelling Portugal to the 50th position globally. The year saw a projected GDP growth of 2.3%, followed by a more moderate increase of 1.5% in 2024. On a per capita basis, the nominal GDP rose to $26,879 in 2023, securing Portugal's 41st position in the global ranking for nominal GDP per capita. Additionally, in terms of PPP-adjusted GDP per capita, Portugal maintained the 41st position, with an anticipated increase to $45,227 in 2023.
In 2022, Portugal experienced an inflation rate of around 7.83%, a figure comparatively lower than the European Union average of 8.83% and the United States' 8.00%.
Looking back at 2023, the nominal GDP experienced a substantial increase of $276.432 billion, propelling Portugal to the 50th position globally. The year saw a projected GDP growth of 2.3%, followed by a more moderate increase of 1.5% in 2024. On a per capita basis, the nominal GDP rose to $26,879 in 2023, securing Portugal's 41st position in the global ranking for nominal GDP per capita. Additionally, in terms of PPP-adjusted GDP per capita, Portugal maintained the 41st position, with an anticipated increase to $45,227 in 2023.
How motorsports affect Portugal economy?
The motor sport industry contributes significantly to the economy, boasting a total annual gross output of €159.2 billion. This figure encompasses the market value of goods and services produced by the industry, along with the multiplier effects generated by direct expenditures. With a total value add of €66.9 billion, the industry not only drives its own production but also stimulates economic activities throughout various sectors. Supporting a substantial workforce, the motor sport industry provides 1.5 million paid jobs, including full-time, part-time, and casual positions. Additionally, it engages 302,000 formal (unpaid) officials, marshals, and volunteers, showcasing the extensive involvement of the community. A remarkable 2.7 million individuals actively participate in motor sports, encompassing competitors, officials, marshals, and volunteers. This thriving sector hosts an impressive 60,700 events annually, facilitated by 7,200 facilities, tracks, and venues, further fostering a network of 21,600 local motor sport clubs.
Economy and maritime affairs in Portugal
From their extensive Exclusive Economic Zone, the largest in Europe, Portugal extracts the world's finest fish, an integral part of a healthy diet, as well as seaweed that enriches luxurious cosmetic products.
The biodiversity and abundance of marine natural resources undergo constant scrutiny by Research and Development Centers, which continue to be amazed by their richness.
Situated in a privileged zone where international routes intersect, their ports serve as the first point of intersection for ships coming from the Panama Canal. Unique port and weather conditions, coupled with integration into modern transportation networks, make Portugal a mandatory stop for thousands of ships annually.
Specialized vessels and luxury yachts come to life through the skilled hands of an experienced population traditionally connected to the sea and shipbuilding.
Recognizing the importance of sustainability, they implement technologies that harness the energy of waves, tides, and wind, providing clean energy for power grids.
Portugal, a country born with a view of the sea, is rediscovering its relationship with the ocean to create new value.
The biodiversity and abundance of marine natural resources undergo constant scrutiny by Research and Development Centers, which continue to be amazed by their richness.
Situated in a privileged zone where international routes intersect, their ports serve as the first point of intersection for ships coming from the Panama Canal. Unique port and weather conditions, coupled with integration into modern transportation networks, make Portugal a mandatory stop for thousands of ships annually.
Specialized vessels and luxury yachts come to life through the skilled hands of an experienced population traditionally connected to the sea and shipbuilding.
Recognizing the importance of sustainability, they implement technologies that harness the energy of waves, tides, and wind, providing clean energy for power grids.
Portugal, a country born with a view of the sea, is rediscovering its relationship with the ocean to create new value.
Is Portugal's economy improving now?
Yes, Portugal's economy has been improving. The country's Gross Domestic Product (GDP) has shown a consistent upward trend from 205 billion euros in 2018 to 255.20 billion euros in 2022. Additionally, the GDP per capita has also increased over the same period.
Portugal vs Mexico economy
Mexico and Portugal exhibit divergent economic profiles across key indicators. Mexico operates with the Mexican peso, while Portugal uses the euro. Mexico maintains a lower unemployment rate at 3.3%, contrasting with Portugal's 5.8%. Inflation is slightly higher in Mexico at 7.90% compared to Portugal's 7.83%. The cost of living is lower in Mexico, standing at 58.51%, while Portugal's is 67.93%. Commercial taxes and contributions, however, are significantly higher in Mexico at 55.10% versus Portugal's 39.80%. Average income in Portugal is considerably higher at $25,950, in stark contrast to Mexico's $10,820. Furthermore, Portugal faces higher government debt percentages, both centrally and generally, and has a lower corruption index of 38, compared to Mexico's 69, which is considered unfavorable.
Portugal vs Poland economy
Poland and Portugal exhibit notable differences across various economic indicators. Poland employs the zloty, while Portugal uses the euro. Poland boasts a lower unemployment rate at 2.6%, whereas Portugal's stands at 5.8%. Inflation is higher in Poland, reaching 14.43%, compared to Portugal's 7.83%. The cost of living in Poland is lower, with a rating of 46.51%, contrasting with Portugal's 67.93%. Commercial taxes and contributions are slightly higher in Poland at 40.80%, compared to Portugal's 39.80%. The average income in Portugal is $25,950, surpassing Poland's $18,900. Moreover, Portugal faces higher government debt percentages, both centrally and generally, and has a lower corruption index of 38, compared to Poland's 45.
Portugal's economy vs world
Portugal's Economy:
Global Economy:
- Portugal is a member of the European Union and uses the Euro (EUR) as its currency.
- The Portuguese economy has been gradually recovering from the global financial crisis of 2008. However, the recovery process has been slow, and the country faced challenges such as high public debt and unemployment.
- Key sectors in the Portuguese economy include tourism, services, agriculture, and industry. Tourism, in particular, plays a significant role in the country's GDP.
- Portugal has implemented structural reforms to improve its economic competitiveness and fiscal sustainability.
Global Economy:
- The global economy is diverse and includes countries at various stages of development. Major players in the global economy include the United States, China, the European Union member states, and other emerging economies.
- Economic indicators such as Gross Domestic Product (GDP), inflation rates, and unemployment rates vary widely among countries.
- Global trade and interconnected financial markets mean that economic developments in one part of the world can have ripple effects elsewhere.
Circular economy in Portugal
Portugal actively strives to promote a circular economy, emphasizing sustainability and efficient resource utilization. The country focuses on restrained consumption and material processing to minimize waste. Initiatives in restoration and recycling contribute to the creation of new job opportunities, while innovative technologies, such as waste reuse and disposal, contribute to the establishment of a sustainable and environmentally responsible economic model in Portugal.
