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Instituto Camoes
Economy Home >About Portugal >Economy
Following the trend of its European partners, the weight of the Portuguese services sector has increased significantly in recent decades. In 2008, agriculture, forestry and fishing generated 2,4% of gross value-added (GVA) against 24% in 1960 and created 11,5% of jobs. Industry, construction, energy and water generated 24% of GVA and accounted for 29,3% of jobs. The services sector employed 59,3% of the working population and generated 73,6% of gross value-added.

Apart from the greater focus on services there has been significant change in manufacturing. The manufacturing industry has changed dramatically moving from high dependence on textiles, footwear and others to new sectors offering dynamic growth and involving a larger incorporation of technology: motor vehicles and components, electronics, pharmaceuticals and new technologies, including renewable energies.

Portugal’s geographic position also impacts on the growth of the services sector. The mild Mediterranean climate moderated by the influence of the Atlantic together with its extensive coastline, are significant factors driving the growth of the tourism industry.

In 2007, the growth of the Portuguese economy was driven by an increase of the corporate investment as well as of the exports of goods and services and the national GDP grew 1,9%.

In 2008, the international financial crisis (which deepened during the last quarter) and the steep increase of the prices of energy and raw materials (during the first quarter) had a negative impact on the global economy. In 2008, Portugal’s GDP stagnated at 0 percent, while in 2009 it contracted by 2,6%. The growth estimate for 2010 is of 0,7%.