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Since 1985, the country started its modernization in a very stable environment (1985 - to the present day) and it joined the European Economic Community in 1986. Successive governments have implemented various reforms and privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. Portugal developed an increasingly service-based economy and it was one of the eleven founding countries of the € in 1999 and began circulating the new currency on January 1, 2002 along with eleven other EU members. The major industries are the textile, footwear, leather, furniture, ceramics, and cork. Modern industries have developed significantly, including: oil refineries, petrochemistry, cement production, automotive and ship industries, electrical and electronics industries, machinery and paper industries. Portugal has an ambitious and well-planned complex of petrochemical industries in Sines where the biggest oil refinery of the Iberian peninsula will be built. Automotive and other mechanical industries are located in Setúbal, Porto, Aveiro, Braga, and Santarém. A considerable part of continental Portugal is dedicated to agriculture, although it does not represent most of the economy. The south has developed an extensive mono culture of cereals and olive trees and the Douro Valley in vineyards. Olive trees (4,000 km²; 1,545 sq mi), vineyards (3,750 km²; 1,450 sq mi), wheat (3,000 km²; 1,160 sq mi) and maize (2,680 km²; 1,035 sq mi) are produced in vast areas. Portuguese wine and olive oil are especially praised by nationals for their quality, thus external competition (even at much lower prices) has had little effect on consumer demand. Portugal is a traditional wine grower, and has exported its wines since the dawn of western civilization; Port Wine and Green Wine are the leading exporters. Portugal is also a quality producer of fruits, namely the Algarve oranges and Oeste region's Pera Rocha (a type of pear). Other exports are horticulture, floriculture, beet sugar, sunflower oil, and tobacco. Natural resources such as copses cover about 34% of the country, namely pine trees (13,500 km²; 5,200 sq mi), cork oak (6,800 km²; 2,625 sq mi), holm oak (5,340 km²; 2,060 sq mi), and eucalyptus (2,430 km²; 940 sq mi). The large-scale growing of eucalyptus for the paper and woodchip industries has been controversial, as eucalyptus trees have very deep roots, and lead to a lowering of the water table. This has been a contributory factor in the high rate of arson, as failing farmers vent their frustrations. Cork is a major export, Portugal produces half of the world's cork. Significant mining resources are tungsten, tin, and uranium. Portugal's balance of trade is negative. It buys mostly in the European Union from: Spain, Germany, France, Italy, and the United Kingdom. It also sells most of its products within the union to: Germany, Spain, and France mostly. Portugal is trying to develop a cultural and rustic tourism, rather than only beach tourism, in order to attract more affluent tourists often concerned in getting to know the real Portugal. The interior of the nation has a decreasing population, but exceptional touristic potential. The Algarve, with its different beaches has been the primary attraction for decades, but it has suffered from mass tourism, and the authorities have been working to recover the 1960's Algarve, namely recovering the coast. Mass tourism has caused some ecological damage in the Algarve, for example water shortages. The Lisbon area has recently become a very popular destination, mostly due to the city of Lisbon urban historical attractions, but also due to Sintra's fabled palaces and castles located in very romantic scenery. The island territories of Madeira and the Azores also have a growing potential. |
Portugal Information: Inside
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