Portugal

Kathryn Brunicardi

Overall Score 65.3 World Ranking 64

Portugal Quick Facts/ United States

population: 10.6mil / 316.4mil

GDP:244.8 Billion / 16.8 Trillion

GDP growth: -1.4% / 1.9%

GDP per capita: 23,068 per capita / 53,101 per capita

unemployment: 16.9% / 7.5%

inflation: 0.4% / 1.5%

Foreign Direct Investment: 3.1 billion / 187.5 billion

Legal System

  1. The Portuguese legal system is a civil law or continental legal system, based on Roman law. It is similar to other civil law legal systems found in other European countries such as France, Italy, Spain and Germany. Portugal has a limited government with a where the individual income rate is 48 percent. Portugal is a parliamentary republic with a president elected by direct universal suffrage for a five year term of office. The Principle Source of Law is the Constitution.

Competitive Markets

2. Portugal's competitive market is much larger then it appears. The demand for high-quality, price competitive U.S products in Portugal is strong. Portugal electrically markets are open to competition, but gas products are moving at a much slower pace. Between the years 2000-2009, Portuguese competitive markets saw a drastic reduction.

Limits on Government Regulation.

3. Portugal's private enterprise is more straightforward. To launch a business, there is no minimal capital required. Business, labor, and monetary freedoms are all high in Portugal due to its government regulation. Portugal's government is very efficient due to its regulations. Portugal encourages home ownership with government programs, and helps the unemployed.

An Efficient Capital Market

4. As of January 2015, Portugal's Capital Market has increased by 7.2%. For nearly two years, Portuguese issuers were unable to gain access to international capital markets. Portugal's capital market now is improving efficiently with the help of Troika’s financial assistance programme.

Monetary Stability

5. The monetary system of Portugal is decimal based, with the primary unit of currency called the Euro. Portugal will become the 11th country to join the European communites monetary system. Portugal made a fundamental decision so that they can keep on path to European Economics. The European Monetary System (EMS) is an organization established in 1979 for the purpose of stabilizing the exchange rates if those European community.

Tax Rates

7. Regarding non-residents, only income obtained in Portugal is subject to taxation, At a general tax rate of 20 percent. Income from real-estate is subject to 10%. The tax rate for the personal income is ranging from 11.5 percent up to 45.6 percent. Taxes in Portugal are generally high, especially if your not a resident of the country. If a person spends more then 183 days in the country, they are considered a resident and have lower tax rates.

Free Trade

8. Portugal has a 1.0 average tariff rate. The government screens foreign investment on several sectors. Trade freedom in Portugal is up 88%. Portugal has a free trade agreement with multiple countries such as India and Afghanistan. Portugal's free trade use to be really strict and caused the economy to crash. Now, with the free trade agreements, their economy has improved and trade has improved.
Portugal Economic Crisis

Video Summary:

This video discuses Portugal's economic crisis. The country was left in despair and was never left so desperate. It discusses how they were once a strong country but then was destroyed by poor economic decisions.