GDP of Portugal: 10 Reasons Why Portugal is a Top Destination for Investors
What is GDP of Portugal?
The GDP of Portugal, or Gross Domestic Product, is the total value of goods and services produced within the country’s borders in a given year.
In 2020, Portugal’s GDP was approximately $243 billion, making it the 16th largest economy in the European Union.
The Portuguese economy is diversified and has a strong presence in the service sector, which accounts for around 70% of its GDP.
The country also has a significant manufacturing sector, particularly in the automotive, electronics, and textiles industries.
Portugal is also a major producer of cork and wine, with its wines being renowned worldwide.
In recent years, Portugal has undergone significant structural reforms and has implemented policies to attract foreign investment.
The government has implemented measures to improve the business environment, such as simplifying bureaucratic procedures, reducing labor costs, and offering tax incentives to investors.
The COVID-19 pandemic had a significant impact on the Portuguese economy, with the country experiencing a contraction of around 7.6% in 2020.
However, the economy is expected to recover in the coming years, with the government implementing stimulus measures and structural reforms to support growth.
Portugal’s membership in the European Union and its participation in the Eurozone provide stability and access to a large market of over 450 million consumers.
The country has also established trade agreements with other countries and regions, such as the United States, China, and the African Union.
10 Reasons Why Portugal is a Top Destination for Investors
If you are looking for a country with a stable economy and welcoming business environment, Portugal is a top destination for investors.
The country is located in the heart of Europe and has a population of 10.3 million people. With a GDP of $243 billion in 2020, Portugal offers investors numerous opportunities in various sectors. In this article, we will highlight 10 reasons why Portugal is a top destination for investors.
1. Strategic location
Portugal is strategically located in the western part of Europe. It is a gateway to the European Union, which has a market of over 450 million consumers.
Portugal is also located close to Africa and South America, which are emerging markets with high growth potential.
Its location also provides access to major sea and air transport routes, making it an ideal location for companies looking to expand their global footprint.
2. Stable political environment
Portugal is a democratic country with a stable political environment. It has a parliamentary system with a president as the head of state.
The country has a robust legal framework that protects investors’ rights and property.
Portugal is also a member of the European Union and NATO, which enhances its credibility and stability.
3. Skilled workforce
Portugal has a highly educated and skilled workforce. The country has a literacy rate of 95%, and over 40% of the population has a tertiary education degree.
The Portuguese workforce is known for its adaptability, innovation, and creativity. It is also bilingual, with most of the population being fluent in English.
4. Competitive Taxation
Portugal has a competitive taxation system that favors investors. The corporate tax rate is 21%, which is lower than in most European countries.
The country also offers several tax incentives to companies that invest in specific sectors, such as tourism, renewable energy, and research and development.
5. Growing tourism sector
Portugal is one of the top tourist destinations in Europe. In 2019, the country received over 24 million tourists, generating over €18 billion in revenue.
The tourism sector is expected to continue growing, with the government investing heavily in infrastructure and marketing campaigns to attract more tourists.
Investors can benefit from the growing tourism sector by investing in hotels, restaurants, and other related services.
6. Renewable energy
Portugal has a significant renewable energy sector, with over 54% of its electricity coming from renewable sources.
The country has invested heavily in wind, solar, and hydroelectric power, making it a leader in renewable energy.
Investors can benefit from the growing demand for renewable energy by investing in this sector.
7. Innovation and entrepreneurship
Portugal has a vibrant startup ecosystem, with several innovative companies emerging in recent years. The country has a favorable business environment that encourages entrepreneurship and innovation.
Portugal has also launched several initiatives to support startups, such as tax incentives, grants, and co-working spaces.
8. High quality of life
Portugal has a high quality of life, making it an attractive destination for investors and their families.
The country has a warm climate, beautiful beaches, and a rich culture.
Portugal also has a low cost of living compared to other European countries, making it an ideal location for retirees and digital nomads.
9. Excellent infrastructure
Portugal has a modern and efficient infrastructure that supports businesses. The country has a well-developed transport system, including highways, airports, and ports.
Portugal has also invested heavily in its telecommunications infrastructure, providing high-speed internet connectivity throughout the country.
10. Competitive real estate market
Portugal has a competitive real estate market, which offers attractive investment opportunities for both domestic and foreign investors.
The country’s property prices are generally lower than those in other European countries, such as Spain, France, and Italy.
Despite the relatively low prices, the quality of housing in Portugal is high, with a range of properties available, from apartments and townhouses to villas and farmhouses.
Additionally, the government has implemented policies to encourage foreign investment in real estates, such as the Golden Visa program, which grants residency permits to non-EU investors who invest in property in Portugal.
This program has been particularly popular among Chinese and Brazilian investors.
As a result, the real estate market in Portugal is growing, making it a top destination for those seeking profitable investment opportunities in this sector.
GDP of Portugal Statistics
| GDP nominal (2017) | GDP growth rate (2017) |
|---|---|
$219,308,128,887 |
2.68% |
- Nominal (current) Gross Domestic Product (GDP) of Portugal is $219,308,128,887 (USD) as of 2017.
- Real GDP (constant, inflation adjusted) of Portugal reached $238,940,661,115 in 2017.
- GDP Growth Rate in 2017 was 2.68%, representing a change of 6,496,912,253 US$ over 2016 when Real GDP was $232,443,748,862.
- GDP per Capita in Portugal (with a population of 10,288,527 people) was $23,224 in 2017, an increase of $712 from $22,512 in 2016; this represents a change of 3.2% in GDP per capita.
Gross Domestic Product (GDP) of Portugal
| Year | GDP Nominal (Current USD) |
GDP Real (Inflation adj.) |
GDP change |
GDP per capita | Pop. change |
Population |
|---|---|---|---|---|---|---|
| 2017 | $219,308,128,887 | $238,940,661,115 | 2.68% | $23,224 | -0.36 % | 10,288,527 |
| 2016 | $206,275,669,202 | $232,443,748,862 | 1.62% | $22,512 | -0.41 % | 10,325,538 |
| 2015 | $199,420,256,050 | $228,052,068,749 | 1.82% | $21,995 | -0.48 % | 10,368,351 |
| 2014 | $229,629,822,122 | $223,971,165,762 | 0.89% | $21,498 | -0.52 % | 10,418,218 |
| 2013 | $226,073,492,966 | $221,988,394,013 | -1.13% | $21,196 | -0.51 % | 10,473,021 |
| 2012 | $216,368,178,659 | $224,525,885,053 | -4.03% | $21,330 | -0.41 % | 10,526,308 |
| 2011 | $244,895,101,712 | $233,949,991,367 | -1.83% | $22,135 | -0.25 % | 10,569,380 |
| 2010 | $238,303,443,425 | $238,303,443,425 | 1.90% | $22,490 | -0.08 % | 10,596,058 |
| 2009 | $243,745,748,819 | $233,863,105,282 | -2.98% | $22,054 | 0.08 % | 10,604,056 |
| 2008 | $262,007,590,450 | $241,041,576,029 | 0.20% | $22,750 | 0.21 % | 10,595,314 |
| 2007 | $240,169,336,162 | $240,562,202,318 | 2.49% | $22,752 | 0.29 % | 10,573,143 |
| 2006 | $208,566,948,940 | $234,713,145,003 | 1.55% | $22,263 | 0.33 % | 10,542,830 |
| 2005 | $197,304,513,120 | $231,123,669,975 | 0.77% | $21,994 | 0.36 % | 10,508,495 |
| 2004 | $189,187,437,298 | $229,364,935,351 | 1.81% | $21,905 | 0.40 % | 10,470,921 |
| 2003 | $164,964,195,260 | $225,283,733,441 | -0.93% | $21,600 | 0.42 % | 10,429,612 |
| 2002 | $134,228,697,534 | $227,408,192,516 | 0.77% | $21,896 | 0.43 % | 10,385,987 |
| 2001 | $121,545,880,984 | $225,673,226,410 | 1.94% | $21,822 | 0.43 % | 10,341,454 |
| 2000 | $118,358,489,958 | $221,371,306,251 | 3.79% | $21,498 | 0.42 % | 10,297,112 |
| 1999 | $127,465,545,493 | $213,292,852,267 | 3.89% | $20,800 | 0.40 % | 10,254,490 |
| 1998 | $123,981,736,420 | $205,309,962,793 | 4.79% | $20,101 | 0.39 % | 10,214,052 |
| 1997 | $117,046,198,971 | $195,921,834,866 | 4.43% | $19,256 | 0.40 % | 10,174,563 |
| 1996 | $122,629,812,841 | $187,617,490,093 | 3.50% | $18,514 | 0.42 % | 10,134,020 |
| 1995 | $118,133,634,072 | $181,278,747,099 | 4.28% | $17,964 | 0.46 % | 10,091,325 |
| 1994 | $99,698,453,261 | $173,833,825,992 | 0.96% | $17,305 | 0.48 % | 10,045,044 |
10 Frequently Asked Questions (FAQs) About the GDP of Portugal
- What is GDP and why is it important?
- GDP, or Gross Domestic Product, is the total value of goods and services produced within a country’s borders in a given year.
It is an important measure of a country’s economic health and can be used to compare the economic performance of different countries.
- What is the current GDP of Portugal?
- As of 2021, the current GDP of Portugal is approximately $257 billion.
- How has Portugal’s GDP grown over the years?
- Portugal’s GDP has experienced both periods of growth and contraction over the years. For example, in the 1990s and early 2000s, the country experienced a period of steady growth, while the global financial crisis in 2008 led to a contraction in the economy.
In recent years, the economy has grown again, although it was impacted by the COVID-19 pandemic in 2020.
- What are the main contributors to Portugal’s GDP?
- The main contributors to Portugal’s GDP are the service sector, manufacturing, and agriculture. The service sector is the largest contributor, accounting for around 70% of the country’s GDP.
- How has the COVID-19 pandemic impacted Portugal’s GDP?
- The COVID-19 pandemic had a significant impact on Portugal’s GDP, leading to a contraction of around 7.6% in 2020.
However, the country is expected to recover in the coming years, with the government implementing stimulus measures and structural reforms to support growth.
- What role does foreign investment play in Portugal’s GDP?
- Foreign investment plays an important role in Portugal’s GDP, as it helps to attract capital and create jobs.
The government has implemented policies to attract foreign investment, such as reducing labor costs and offering tax incentives to investors.
- What is Portugal’s position in the European Union in terms of GDP?
- Portugal is the 16th largest economy in the European Union in terms of GDP, with a relatively small economy compared to other member states such as Germany and France.
- What are some of the advantages of investing in Portugal’s economy?
- Some advantages of investing in Portugal’s economy include the country’s stable political environment, strategic location, and competitive real estate market.
Portugal is also a member of the European Union and the Eurozone, providing access to a large market of over 450 million consumers.
- What are some of the challenges facing Portugal’s economy?
- Some of the challenges facing Portugal’s economy include high public debt, low productivity, and an aging population.
These challenges require the government to implement policies and reforms to support long-term economic growth.
10. What are some sectors of Portugal’s economy that are particularly attractive to investors?
- Some sectors of Portugal’s economy that are particularly attractive to investors include tourism, real estate, renewable energy, and technology.
These sectors offer attractive investment opportunities due to their growth potential and the government’s policies to support their development.
Sources:
- GeoNames
- World Population Prospects: The 2019 Revision – United Nations Population Division
- Organisation for Economic Co-operation and Development (OECD)
- World Urbanization Prospects – Population Division – United Nations
- United Nations Statistics Division
- World Bank