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Portugal Country Report

In:

Submitted By rahuldeorah
Words 2858
Pages 12
1. Background

2. Measuring Economic Activity

2.1 GDP 2.2 Investment 2.3 Consumption 2.4 Savings 2.5 Rate of interest

3. Foreign Capital 3.1 Comparative Trade Advantage 3.2 Trade Deficit

4. Long Run Factors affecting Economy 4.1 Politics 4.2 Education 4.3 Corruption 4.4 Population 4.5 Health

5. Monetary Policy and Inflation 5.1 Exchange Rates 5.2 Inflation

6. Labour Market and Unemployment

7. Conclusion

8. Bibliography

1. Background

Portugal joined European Union in 1986 and the euro zone in 2002. It is a developed country and has a very high human development index with the current world ranking of 41. Human Development Index is a composite statistic used to rank countries by level of “human development” measured in terms life expectancy, literacy, education, and standards of living in a country. However, in 2011, the country was hit by a sovereign debt crisis and is now under the bailout programme via the European Union – International Monetary Bailout Fund. As the country is under euro debt, the market pressure will continue to keep the state volatile.

2. Measuring Economic Activity

2.1 GDP

Exhibit 2.0

Portugal using euro as of 1 January 2002, accompanied by another 11 other European Union nations. Since it started using euro, Portugal’s economy has grown at an annual average rate of 1%, compared with 1.4% in the euro area (exhibit 2.1). In 2011, as a result of market detoriation, the GDP decreased by 1.6%. Infact, even this was offset by a robust growth in exports of goods and services. The current projections

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