2. PORTUGAL ECONOMY OVERVIEW ECONOMY OVERVIEW Business Meeting PORTUGAL - SERBIA 2 July 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% Tax revenue Tax revenue 34.8% (%GDP, 2007) (% GDP) Exports Exports 33% Imports Imports 42% Foreign Investment Stock (2007) Inward 51% Outward 31% Main features - 2008 GDP M€ 166 128 GDP p/cap € 15 640 Population 10.6 mio Employment Rate 68.2%

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 MAIN STRENGHTS

12. 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

13. BUILDING ON NEW CHALLENGES - RENEWABLE ENERGY Share of renewable energy in gross electric consumption - 2007 4 th Portugal 30.1% EU 27 15.6% windhydro solar wave biomass 4 th world wind energy producer

14. THE CAPACITY OF CHANGING e-Government availability e-Government Sophistication Technological Plan fostering company innovation and broadband Investment Administrative Simplification Company on time Mobile Broadband - high penetration - 3 rd country of EU27 R&D Centers of multinational companies 70% 50% 90% 59% 82% 78% 90% 77%

15. A PEACEFUL COUNTRY TO INVEST Source: Global Peace Index 2008 Economist Intelligence Unit Nations considered the most peaceful have lower index scores Portugal is the 7 th most peaceful country in the World Committed to the European Growth and Stability Pact Quality of life Diversity of qualified, multilingual workforce Suppliers capacity for big corporations Country RankScore Japan Iceland Denmark Norway New Zeland Ireland Portugal 1 2 3 4 5 6 7 1.176 1.333 1.343 1.350 1.358 1.410 1.412

16. ECONOMIC INFORMATION PORTUGAL PORTUGAL www.aip.pt www.aip.pt

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

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