PORTUGAL ECONOMY OVERVIEW ECONOMY OVERVIEW Business Meeting Lodz Special Economic Zone 11 May 2009

European Union 27 PORTUGAL

Inflation rate Inflation rate 2.6% excl. energy 2.2% Unemployment Unemployment 7.6% Public Deficit Public Deficit 2.6% (% GDP) Exports Exports 33% Imports Imports 42% Foreign Investment (2007) Inward 44% Outward 28% Main features GDP M€ GDP p/cap € Population 10.6 mio Employment Rate (2007) 67.8%

GROSS DOMESTIC PRODUCT Real growth rate Source: INE, Eurostat

ECONOMY OVERVIEW ECONOMY OVERVIEW... through external trade

EXPORTS STRUCTURE EVOLUTION Main Sectors Source: INE (% total)

Source: INE Main Sectors in Trade (% total) Automotive Biotechnology Forestry Moulds Technical fabrics... world performing clusters

3,8 % 10,8 % Source: Balance of Payments, Banco de Portugal SIGNIFICANT GROWTH OF SERVICES EXPORTS (% GDP)... leading niche provider Construction Services Technical Assistance Services ICT Services Tourism

DIVERSIFYING EXPORT DESTINATIONS … growing in Portuguese speaking countries

PORTUGAL – POLAND External Trade

EXTERNAL TRADE: PORTUGAL - POLAND Source: Eurostat, External Trade

EXTERNAL TRADE Source: Eurostat, External Trade PORTUGAL - POLAND PORTUGAL - WORLD

PORTUGAL MAIN STRENGHTS

Macau Guinea-Bissau Sao Tome and Principe Cape Verde Brazil East Timor MozambiqueAngola Portugal A GEOSTRATEGIC LOCATION New stage on GlobalisationNew stage on Globalisation Main investor in Brazil, Angola…Main investor in Brazil, Angola… Strong investment in all Portuguese speaking countries Access to 230 Millions Consumers Most modern telecom networks Logistic Platforms Network and privileged access

BUILDING ON NEW CHALLENGES - RENEWABLE ENERGY Share of renewable energy in gross electric consumption th Portugal 30.6% EU % windhydro solar wave biomass 4 th world wind energy producer

THE CAPACITY OF CHANGING e-Government availability e-Government Sophistication Technological Plan fostering company innovation and broadband Investment Administrative Simplification Company on time ATM equipments 30 services provided R&D Centers of multinational companies 70% 50% 90% 59% 82% 78% 90% 77%

ECONOMIC INFORMATION PORTUGAL PORTUGAL

MAGNA CARTA FOR COMPETITIVENESS ANNUAL REPORTS ON COMPETITIVENESS BENCHMARKS AND RECOMMENDATIONS

Information Economic Economic Key short-term indicators Forecasts Structural indicators