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

3. European Union 27 PORTUGAL

4. 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 - 2008 GDP M€ 166 128 GDP p/cap € 15 640 Population 10.6 mio Employment Rate (2007) 67.8%

5. GROSS DOMESTIC PRODUCT Real growth rate Source: INE, Eurostat

6. ECONOMY OVERVIEW ECONOMY OVERVIEW... through external trade

7. EXPORTS STRUCTURE EVOLUTION Main Sectors - 1985-2007 Source: INE (% total)

8. Source: INE Main Sectors in Trade - 2008 (% total) Automotive Biotechnology Forestry Moulds Technical fabrics... world performing clusters

9. 3,8 % 10,8 % 0 2 4 6 8 10 12 19962008 Source: Balance of Payments, Banco de Portugal SIGNIFICANT GROWTH OF SERVICES EXPORTS (% GDP)... leading niche provider Construction Services Technical Assistance Services ICT Services Tourism

10. DIVERSIFYING EXPORT DESTINATIONS … growing in Portuguese speaking countries

11. PORTUGAL – POLAND External Trade

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

13. EXTERNAL TRADE - 2008 Source: Eurostat, External Trade PORTUGAL - POLAND PORTUGAL - WORLD

14. PORTUGAL MAIN STRENGHTS

15. 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

16. BUILDING ON NEW CHALLENGES - RENEWABLE ENERGY Share of renewable energy in gross electric consumption - 2007 4 th Portugal 30.6% EU 27 15.6% windhydro solar wave biomass 4 th world wind energy producer

17. THE CAPACITY OF CHANGING e-Government availability e-Government Sophistication Technological Plan fostering company innovation and broadband Investment Administrative Simplification Company on time ATM - 12 000 equipments 30 services provided R&D Centers of multinational companies 70% 50% 90% 59% 82% 78% 90% 77%

18. ECONOMIC INFORMATION PORTUGAL PORTUGAL www.aip.pt www.aip.pt

19. MAGNA CARTA FOR COMPETITIVENESS ANNUAL REPORTS ON COMPETITIVENESS BENCHMARKS AND RECOMMENDATIONS

20. Information Economic Economic Key short-term indicators Forecasts Structural indicators