Portugal - Economist Intelligence Unit - The Economist
DOMESTIC POLITICS: Following the general election in September 2009, the incumbent PS will govern as a minority government during the forecast period, given that the election did not produce an obvious government coalition that could marshal an absolute majority in parliament. The PS's strategy as a minority administration will involve forming ad hoc parliamentary coalitions in order to pass legislation, looking to the right or the left depending on the issue at hand. The PS can achieve a parliamentary majority with either the main opposition centre-right PSD, the small centre-right Popular Party (PP) or the two far-left parties (Left Bloc and the Communist Party) together. This strategy is likely to lead to increased political instability, especially compared with the PS's previous term in office, when the party held an absolute majority.
Country Forecast Overview (3 Year)
| Key Indicators |
2009 |
2010 |
2011 |
| Real GDP Growth (%) |
-3.10 |
.10 |
.50 |
| Consumer Price Inflation (av;%) |
-.80 |
.50 |
.90 |
| Budget Balance (% of GDP) |
-8.10 |
-7.00 |
-5.90 |
| Current-Account Balance (% of GDP) |
-9.00 |
-8.40 |
-8.00 |
| Exchange Rate US$:Euro (av) |
.72 |
.70 |
.72 |
| Exchange Rate US$:Euro(year-end) |
.68 |
.72 |
.71 |
Portugal GDP PPP & GDP Growth Rates
2005 - 2009
| Year |
GDP in Billions of USD PPP |
% GDP Growth |
| 2005 |
210.80 |
0.40 |
| 2006 |
220.32 |
1.00 |
| 2007 |
231.34 |
1.60 |
| 2008 |
236.39 |
-0.20 |
| 2009 |
232.66 |
-3.10 |
Source: EIU Country Data
Portugal: risk assessment
| Risk |
January 2010 |
| Sovereign risk |
BBB |
| Currency risk |
BBB |
| Banking sector risk |
BBB |
| Political risk |
A |
| Economic structure risk |
BBB |
|
Featured Economic Reports
|
Largest Public Companies in Portugal
|
