Portugal's economy is a free market economy. As a member country of the European Community. Portugal has a regulation EU since 2535 (1992), Portugal had joined the mechanism Exchange (Exchange Rate Mechanism-ERM), which is the start of the financial system and economy to enter the European Monetary Union. Portuguese Escudo the money to maintain a stable throughout. Including the ability to control budget deficits and. Public debt at a rate that meets EU requirements. As a result, Portugal is adopting the euro on January 1, 2544 (2001), together with 11 other nations by the exchange rate. Of the Escudo of Portugal to the level fixed at 200.482 Escudo per 1 euro and the ECB (European Central Bank) policy control currency exchange rates of countries that use the euro
after the. EU members in 2529 (1986), Portugal has accelerated the development of the country. Especially in the economy and society. To keep pace with the other Member States is to develop infrastructure in several projects, such as increased highway improvements, rail system, subway dam sewage system. And development of poor communities on the development has been supported by the European Union in the framework such as the Cohesion Fund, which Portugal has been more than 20 billion US dollars and the European Regional Development Fund, which in the year 2542 (c. AD. . 1999), Portugal was 3.1 billion US dollars
currently Portugal's development of the poorest countries in the European Union (EU) as a country where the rate of economic growth is high as No. 4 of the European Union regard the economy. Portugal grow And comparable with other countries in the region have achieved it. As a result of the government policy to expedite privatization and investment promotion and tourism. The interest rates are likely lower. The comparable to other member countries of the Economic and Monetary Union (EMU) is reduced from 10-12 percent to 4-5 percent in the year 2541 (1998), these factors are impulse. impact on investment and economic growth. Especially in the year 2541 (1998), which organized the Expo'98 in Lisbon. As a result, construction activities throughout the year 2541 (1998), an increase of 12 per cent, including the launch of Vasco da Gama Bridge, a bridge over the baton of Gustavo II
because Portugal is not important natural resource. Especially mineral or energy Portugal's economy will depend on the service sector. Especially from tourism, which had revenues of about 4.8 billion US dollars per year. From which tourists visiting Portugal for about 12 million people per year, the other major source of income. Portugal is Small and medium-agricultural income taxation (particularly fuel, which store up to 34 per cent) VAT. (Which store 5-17 per cent) rent of US military bases on the islands of the Azores and the income of Portuguese working abroad each year about 3.1 billion US dollars by the year 2542 (1999). Portugal had revenues of 3.3 billion US dollars, up 41 percent from France,
the current economic conditions
in the latter. Portugal's economic growth rate began to slow. And -1.2 per cent in the year 2546 (2003) lower than the EU average. This is the major reason is 0.7 percent. Higher oil prices worldwide. Making higher cost of living While Portugal's economic slowdown. The export value decline is a decline of 23.6 billion US dollars in the year 2542 (1999) to 21.9 billion US dollars in 2543 (AD 2000), while imports were worth the same. 36.2 billion US dollars Because of the reduced purchasing power. As a result, consumption fell steadily throughout the year 2543 (the year the 2000th)
GDP. Of Portugal in 2543 (AD 2000), down from a year earlier to 99.8 billion US dollars. Due to economic conditions and the weakening of the euro. Average income per capita (per capita GDP) fell to US $ 9964 for the same reason. The economic growth was 3.8 percent, 3.3 percent unemployment, the trade deficit of about 12 billion US dollars per year for the year 2543 (AD 2000), the deficit rose to 14.3 billion US dollars. Since exports decline Gold and exchange reserves fell to 13.9 billion US dollars. Foreign public debt is 13.6 billion US dollars. The financial deficit of 1.5 percent of GDP in 2543 (AD 2000), foreign investment in Portugal, totaling about 30 billion US dollars. While foreign investment in Portugal to 12 billion US dollars
, economists said. Portugal's accelerated economic development and the rapid growth continues. Portugal's economy into a state overheat and higher spending. What is noticeable Household debt has risen steadily from 20 percent of revenue in 2533 (1990) was 92 percent in 2543 (2000), Portugal's inflation rate reached 2.8 percent higher. rates than the EU average, which stood at 2.3 percent current account deficit increased significantly. And real estate price increases. The Portuguese government is aware of such problems. But you can not use monetary measures to resolve the issue. Due to jam the rules of the EMU addition, Portugal can not control the expenditure of state. It can be seen that the budget 2544 (2001), there are still projects that increase the cost of government continues to
industry
Portugal is a small country and does not have many resources. Originally an agricultural country and has to import energy. In particular, all foreign oil. Economic development is the most important. The transition from an economy based on agriculture and fishing. A country with an economy the manufacturing sector and the service sector. As a result, Portugal's economy is growing rapidly and consistently at a rate of 3.5 percent, which is higher than the EU average,
Portugal has no heavy industry. Portugal's main industries include food and tools.
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