section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Portugal is a developed and high-income country with a GDP per capita of 82% of the EU27 average in 2024, and a HDI of 0.874 (the 42nd highest in the world) in 2022. It holds the 13th largest gold reserve in the world at its national central bank, has the 8th largest proven reserves of lithium, with total exports representing 46.6% of its GDP in 2024. Portugal has been a net beneficiary of the European Union budget since it joined the union, then known as EEC, in 1986.
  
  By the end of 2023, GDP (PPP) was $47,331 per capita, according to the World Bank. In 2023, Portugal had the 5th lowest GDP per capita (PPP) of the eurozone out of 20 members, and the 8th lowest of the European Union out of 27 member-states. In 2022, labour productivity had fallen to the fourth lowest among the 27 member-states of the European Union (EU) and was 35% lower than the EU average.
  
  Portugal was an original member of the eurozone. The national currency, the euro (€) started transitioning from the Portuguese Escudo in 2000 and consolidated in 2002. Portugal's central bank is the Banco de Portugal, an integral part of the European System of Central Banks. Most industries, businesses and financial institutions are concentrated in the Lisbon and Porto metropolitan areas – the Setúbal, Aveiro, Braga, Coimbra, Leiria and Faro districts are the biggest economic centres outside these two main areas.
  
  Since the Carnation Revolution of 1974, which culminated in the end of one of Portugal's most notable phases of economic expansion, a significant change has occurred in the nation's annual economic growth. After the turmoil of the 1974 revolution, Portugal tried to adapt to a changing modern global economy, a process that continues. Since the 1990s, Portugal's public consumption -based economic development model has changed to a system focused on exports, private investment and the development of the high-tech sector. Consequently, business services have overtaken more traditional industries such as textiles, clothing, footwear and cork (Portugal is the world's leading cork producer), wood products and beverages.
  
  In the 2010s, the Portuguese economy suffered its most severe recession since the 1970s, which resulted in the country receiving a 78-billion-euro bailout from the European Union and the International Monetary Fund in May 2011. By end of 2023, the share of debt as percentage of GDP fell below 100 percent, to 97.9%, and fell further to 94.9% by the end of 2024.
  
  In 2024, the average gross salary was €1,602 per month, and the minimum wage, which is regulated by law, is €870 per month (paid 14 times per annum) as of 2025. The World Competitiveness Ranking 2025, by Swiss institute IMD, ranked Portugal at 37th. The Numbeo quality of life index placed Portugal 20th in the world in 2023.
  
  Companies listed on Euronext Lisbon stock exchange like EDP, Galp, Jerónimo Martins, Mota-Engil, Novabase, Semapa, Portucel Soporcel, Portugal Telecom and Sonae, are among the largest corporations by number of employees, net income or international market share. The Euronext Lisbon is the major stock exchange and part of the pan-European group of stock exchanges Euronext. The PSI-20 is Portugal's most selective and widely known stock index.
  
  The OECD economic reports since 2018 show recovery. Rents and house prices have skyrocketed in Portugal, particularly Lisbon, where rents jumped 37% in 2022. The 8% inflation rate in the same year exacerbated the problem. According to the IMF, Portugal's economic recovery from the COVID pandemic in 2022 was substantially better than the EU average. Although modest, economic growth continued in 2023 while inflation continued decreasing to 5%. In 2024 the annual inflation continued a downward trend ending at 2.3% and accompanied by a small economic growth. In 2025, the economy is expected to continue growing at 1.9 annually, while inflation is forecast at 2.1% for the fiscal year. These moderately optimistic indicators are supported by increased private consumption, investment, employment growth and unemployment easing.
  
  Agriculture in Portugal is based on small to medium-sized family-owned dispersed units. However, the sector also includes larger scale intensive farming, export-oriented agrobusinesses. The country produces a variety of crops and livestock products, including: tomatoes, citrus, green vegetables, rice, wheat, barley, maize, olives, oilseeds, nuts, cherries, bilberry, table grapes, edible mushrooms, dairy products, poultry and beef. According to FAO, Portugal is the top producer of cork and carob in the world, accounting for about 50% and 30% of world production, respectively. It is the third largest exporter of chestnuts and third largest European producer of pulp. Portugal is among the world's top ten largest olive oil producers and fourth largest exporter. The country is one of the world's largest exporters of wine, reputed for its fine wines. Forestry has played an important economic role among the rural communities and industry. In 2001, the gross agricultural product accounted for 4% of the economy; in 2022 it was 2%.