PORTUGAL European Union 27

PORTUGAL ECONOMY OVERVIEW ECONOMY OVERVIEW

Inflation rate Inflation rate 2.4% excl. energy 2.3% Unemployment Rate Unemployment Rate 8% Public Deficit Public Deficit 2.6% of GDP (% of GDP) Exports Exports 33% Imports Imports 40% Stock Investment Inward 44% Outward 28% Main features Value Added by activity GDP million € GDP per head € Population 10.6 millions Employment 5.2 millions Employment Rate 67.8%

GROSS DOMESTIC PRODUCT Real growth rate Source: 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

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

DIVERSIFYING EXPORT DESTINATIONS (EU-EXTRA EXPORTS IN % TOTAL EXPORTS) Source: Eurostat 18% 30%... growing in Portuguese speaking countries

PORTUGAL MAIN STRENGHTS

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%

BUILDING ON NEW CHALLENGES - RENEWABLE ENERGY Share of renewable energy in gross electric consumption st Austria 53.4% 2 nd Sweden 46.8% 3 rd Portugal 30.6% EU % windhydro solar wave biomass 4 th world wind energy producer

A PEACEFUL COUNTRY TO INVEST Source: Global Peace Index 2008 Economist Intelligence Unit Nations considered the most peaceful have lower index scores Committed to the European Growth and Stability Pact Quality of life Diversity of qualified, multilingual workforce Suppliers capacity for big corporations Country Rank Japan Iceland Denmark Norway New Zeland Ireland Portugal Score

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 (Millions €) Angola 696,8 Brazil 1 210,1 Cape Verde 81,8 Mozambique 83,2 Access to 230 Millions Consumers Most modern telecom networks Logistic Platforms Network and privileged access

Portugal – India Economic Partners

(Millions €) Source: Eurostat PORTUGAL - INDIA EXPORTS AND IMPORTS 0,6% of total 0,1% of total A distant partner

PORTUGAL – INDIA EXPORTS AND IMPORTS - MAIN PRODUCTS (% of total) Source: EurostatEXPORTSIMPORTS

(Millions €) Source: Eurostat PORTUGAL - INDIA TRADE IN GOODS TRADE IN SERVICES