A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

PORTUGALPORTUGAL

ECONOMY OVERVIEWECONOMY OVERVIEW

Business MissionBusiness Mission

PORTUGAL - SLOVAKIAPORTUGAL - SLOVAKIA

9 July 20099 July 2009

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

European Union 27European Union 27

PORTUGALPORTUGAL

Inflation rateInflation rate 2.6%

excl. energy 2.2%

UnemploymentUnemployment 7.6%

Public DeficitPublic Deficit 2.6%

Tax revenue Tax revenue 36.8% (%GDP, 2007)(%GDP, 2007)

(% GDP)(% GDP)

ExportsExports 33%

ImportsImports 42%

Foreign InvestmentForeign Investment

StockStock (2007)(2007)

Inward 51%

Outward 31%

Main features - 2008Main features - 2008 A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

GDP M€ 166 128

GDP p/cap € 15 640

Population 10.6 mio

Employment

Rate 68.2%

GROSS DOMESTIC PRODUCTGROSS DOMESTIC PRODUCTReal growth rateReal growth rate

Source: INE , Eurostat

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

-2,0

0,0

2,0

4,020

03

2004

2005

2006

2007

2008

Portugal

EA 16

ECONOMY OVERVIEWECONOMY OVERVIEW

... through external trade ... through external trade

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

EXPORTS STRUCTURE EVOLUTIONEXPORTS STRUCTURE EVOLUTIONMain Sectors - 1985-2008Main Sectors - 1985-2008

Source: INE

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

(% total)

3,8

5,2

11,7

11,8

12,4

13,3

17,7

12,3

3,5

4,1

19,1

9,6

8,4

6,4

0 5 10 15 20 25

Transport Equipment

Footwear

Textiles

Machinery andappareils

Agric. and Food Prods

Wood, Cork and Paper

Clothing

1985 2008

Source: INE

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A LMain Sectors in Trade - 2008 Main Sectors in Trade - 2008

(% total)

0% 5% 10% 15% 20%

Footwear

Wood and Cork

Textiles

Paper

Chemical products

Food industries

Mineral fuels

Plastic and Rubber

Clothing

Base metals

Transport Equipment

Machinery

Exports

Imports

Automotive

Biotechnology

Forestry

Moulds

Technicalfabrics

... world performing clusters... world performing clusters

3,8 %

10,8 %

0

2

4

6

8

10

12

1996 2008

Source: Balance of Payments, Banco de Portugal

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A LSIGNIFICANT GROWTH OF SERVICES EXPORTS SIGNIFICANT GROWTH OF SERVICES EXPORTS

(% GDP)

... leading niche provider... leading niche provider

Construction Services

Technical Assistance

Services

ICT ServicesTourism

DIVERSIFYING EXPORT DESTINATIONSDIVERSIFYING EXPORT DESTINATIONS

… … growing in growing in Portuguese speaking Portuguese speaking

countriescountries

Extra EU Exports

26

20

0

5

10

15

20

25

30

2005 2008

Portuguese Speaking countries Exports(in % of EU-extra)

20

30

0

5

10

15

20

25

30

35

2005 2008

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

PORTUGALPORTUGAL

MAIN STRENGHTSMAIN STRENGHTS

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

Macau

Guinea-BissauSao Tome and Principe

Cape Verde

BrazilEast Timor

MozambiqueAngola

PortugalPortugal

A GEOSTRATEGIC LOCATIONA GEOSTRATEGIC LOCATION

• New stage on GlobalisationNew stage on Globalisation• Main investor in Brazil, Angola…Main investor in Brazil, Angola…

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

Strong investment in all Portuguese speaking

countries

Access to 230 Millions Consumers

Most modern telecom networks

Logistic Platforms

Network and privileged access

BUILDING ON NEW CHALLENGES - BUILDING ON NEW CHALLENGES -

RENEWABLE ENERGYRENEWABLE ENERGY

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

Share of renewable energy ingross electric consumption - 2007

4th Portugal 30.1%

EU 27 15.6%

windwindhydrohydro

solarsolar

wavewave

biomassbiomass

4th world wind energy producer

THE CAPACITY OF CHANGINGTHE 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

Portugal Spain Ireland EU 27

70% 50%

90%

59%

Portugal Spain Ireland EU 27

82% 78%

90%

77%

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

ECONOMIC INFORMATIONECONOMIC INFORMATION

PORTUGALPORTUGAL

www.aip.ptwww.aip.pt

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

MAGNA CARTA FOR COMPETITIVENESSMAGNA CARTA FOR COMPETITIVENESS

ANNUAL REPORTS ON COMPETITIVENESSANNUAL REPORTS ON COMPETITIVENESS

BENCHMARKS AND RECOMMENDATIONSBENCHMARKS AND RECOMMENDATIONS

InformationInformation

• Economic Economic

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

Key short-term Key short-term indicatorsindicators

ForecastsForecastsStructural Structural indicatorsindicators

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L