2. PORTUGAL ECONOMY OVERVIEW ECONOMY OVERVIEW Business Meeting Portugal – Czech Republic 31 march 2009

3. Inflation rate Inflation rate 2.6% excl. energy 2.2% Unemployment Rate Unemployment Rate 7.6% Public Deficit Public Deficit 2.6% of GDP (% GDP) Exports Exports 33% Imports Imports 42% Stock Investment (2007) Inward 44% Outward 28% Main features - 2008 GDP 166 128 million € GDP per head € 15 640 Population 10.6 millions Employment 5.2 millions Employment Rate (2007) 67.8%

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

5. ECONOMY OVERVIEW ECONOMY OVERVIEW... through external trade

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

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

8. 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

9. DIVERSIFYING EXPORT DESTINATIONS Source: INE... growing in Portuguese speaking countries

10. PORTUGAL MAIN STRENGHTS

11. 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%

12. BUILDING ON NEW CHALLENGES - RENEWABLE ENERGY Share of renewable energy in gross electric consumption - 2006 1 st Austria 53.4% 2 nd Sweden 46.8% 3 rd Portugal 30.6% EU 15 14.9% windhydro solar wave biomass 4 th world wind energy producer

13. 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 2004-2006 (Millions €) Angola 696,8 Brazil 1 210,1 Cape Verde 81,8 Mozambique 83,2 Access to 230 Millions Consumers Most modern telecom networks Logistic Platforms Network and privileged access

14. ECONOMIC INFORMATION PORTUGAL PORTUGAL

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

16. European Reform Barometer Spring and Autumn ASSESSING THE LISBON STRATEGY PROCESS IN PORTUGAL ANNUAL REPORTS participating on

17. ECONOMIC INFORMATION Available at www.aip.pt

19. MAGNA CARTA FOR COMPETITIVENESS A STRATEGIC VISION Commit strongly to a knowledge-based economy, sustainable growth, quality and innovation, and significant increases in the production of tradable goods and services + AN ACTION PLAN comprising 10 BUSINESS STRATEGIES 10 PUBLIC POLICY OBJECTIVES

20. FOSTERING COMPETITIVENESS AMONG SMEs... supporting INTERNATIONALISATION Reaching new markets Reaching new markets Competing in the world Competing in the world

21. 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