Portugal's economy is based on industries such as textiles, clothing, footwear, cork and wood products, beverages (wine), porcelain and earthenware, and glass and glassware. In addition, the country has increased its role in Europe's automotive sector and has a world-class mold-making industry. Services, particularly tourism, are playing an increasingly important role. Portugal's European Union (EU) funding will be cut by 10%, to 22.5 billion euros, during the 2007-2013 period.

Portugal's economy is based on industries such as textiles, clothing, footwear, cork and wood products, beverages (wine), porcelain and earthenware, and glass and glassware. In addition, the country has increased its role in Europe's automotive sector and has a world-class mold-making industry. Services, particularly tourism, are playing an increasingly important role. Portugal's European Union (EU) funding will be cut by 10%, to 22.5 billion euros, during the 2007-2013 period. EU expansion into eastern Europe has erased Portugal's historic competitive advantage and relative low labor costs. The governments are working to change Portugal's economic development model from one based on public consumption and public investment to one focused on exports, private investment, and development of the high-tech sector.

Portugal joined the European Union in 1986 and started a process of modernization within the framework of a stable environment. It has achieved a healthy level of growth. Successive governments have implemented reforms and privatized many state-controlled firms and liberalized key areas of the economy. Portugal was one of the founding countries of the euro in 1999, and therefore is integrated into the Eurozone.

Major industries include oil refineries, automotive, cement production, pulp and paper industry, textile, footwear, furniture, and cork (of which Portugal is the world's leading producer).^[9] Manufacturing accounts for 33% of exports. Portugal is the world's fifth-largest producer of tungsten, and the world's eighth-largest producer of wine. Agriculture and Fishing (see Portugal EEZ) no longer represents the bulk of the economy, but Portuguese wines, namely Port Wine (named after the country's second largest city, Porto) and Madeira Wine (named after Madeira Island), are exported worldwide. Tourism is also important, especially in mainland Portugal's southernmost region of the Algarve and in the Atlantic Madeira archipelago.

Major industries include oil refineries, automotive, cement production, pulp and paper industry, textile, footwear, furniture, and cork (of which Portugal is the world's leading producer). Manufacturing accounts for 33% of exports. Portugal is the world's fifth-largest producer of tungsten, and the world's eighth-largest producer of wine. Agriculture and Fishing (see Portugal EEZ) no longer represents the bulk of the economy, but Portuguese wines, namely Port Wine (named after the country's second largest city, Porto) and Madeira Wine (named after Madeira Island), are exported worldwide. Tourism is also important, especially in mainland Portugal's southernmost region of the Algarve and in the Atlantic Madeira archipelago.

he Global Competitiveness Report for 2005, published by the World Economic Forum, places Portugal on the 22nd position, ahead of countries such as Spain, Ireland, France, Belgium and Hong Kong . This represents an increase of two places from the 2004 ranking. Portugal was ranked 20th on the Technology index and 15th on the Public Institutions index.^[10]

Research about standard of living by the Economist Intelligence Unit's quality of life survey^[11] places Portugal as the country with the 19th-best quality of life in the world, ahead of other economically and technologically advanced countries like France, Germany, the United Kingdom and South Korea. This is despite the fact that Portugal has the lowest per capita GDP in Western Europe (though still very high by global standards).

Caixa Geral de Depósitos, EDP, Galp, Millennium bcp, Portugal Telecom and Sonae are among the largest corporations of Portugal by both number of employees and net income.

The major stock exchange is the Euronext Lisbon which is part of the NYSE Euronext, the first global stock exchange. The PSI-20 is Portugal's most selective and widely known stock index.

Research about standard of living by the Economist Intelligence Unit's quality of life survey places Portugal as the country with the 19th-best quality of life in the world, ahead of other economically and technologically advanced countries like France, Germany, the United Kingdom and South Korea. This is despite the fact that Portugal has the lowest per capita GDP in Western Europe (though still very high by global standards).

Caixa Geral de Depósitos, EDP, Galp, Millennium bcp, Portugal Telecom and Sonae are among the largest corporations of Portugal by both number of employees and net income.

The major stock exchange is the Euronext Lisbon which is part of the NYSE Euronext, the first global stock exchange. The PSI-20 is Portugal's most selective and widely known stock index.