(Last updated: 2 Jul 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Portugal. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Portugal entered the European Union (EU) in 1986 and ensuing governments, supported by the banking sector, have introduced solid programs to liberalise markets, privatise and restructure industry, and crack down on tax evasion. As a result Portugal's economy has witnessed significant growth and modernisation since the mid-1990s and is now considered to be a diversified and service-based economy. This economic growth has slowed down considerably during the past couple of years.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

Portugal became a republic in 1910 and is a parliamentary democracy. The National Assembly is elected for a five-year term. The government is committed to strategies that will allow Portugal to develop rapidly and further narrow the gap between it and its prosperous European partners. Both the Socialist government, in office since October 1996, and the Social Democrats, the party that ruled Portugal for the previous decade and is now the main opposition in the National Assembly, strongly support European integration.

Trade relations and statistics

With it’s joining of the European Union (EU) in 1986 and the dismantling of tariffs and other trade barriers, the EU became Portugal’s major trading partner.

There is room for improvement in the level of trade between Australia and Portugal. Major items sold to Portugal include motor vehicles, cork manufactures, telelcom equipment and alcoholic beverages.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.