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

PORTUGALPORTUGAL

European Union 27European Union 27

PORTUGALPORTUGAL

ECONOMY OVERVIEWECONOMY OVERVIEW

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

Inflation rateInflation rate 2.4%

excl. energy 2.3%

Unemployment Rate Unemployment Rate 8%

Public DeficitPublic Deficit 2.6% of GDP

(% of GDP)(% of GDP)

ExportsExports 33%

ImportsImports 40%

Stock InvestmentStock Investment

Inward 44%

Outward 28%

Main features - 2007Main features - 2007A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SA

C O N F E D E R A Ç Ã O E M P R E SA R I A L

Services75,5%

Construction 6,4%

Agriculture2,7% Industry

15,5%

Value Added by activity

GDP 162 919 million €

GDP per head € 15 363

Population 10.6 millions

Employment 5.2 millions

Employment Rate 67.8%

GROSS DOMESTIC PRODUCTGROSS DOMESTIC PRODUCTReal growth rateReal growth rate

Source: 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

4,0

6,0

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Portugal

Euro area

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 - 1985-2007Main Sectors - 1985-2007

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

12,8

3,5

4,5

19,8

8,5

8,8

6,9

0 5 10 15 20 25

Transport Equipment

Footwear

Textiles

Machinery and appareils

Agric. and Food Prods

Wood, Cork and Paper

Clothing

1985 2007

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 - 2007 Main Sectors in trade - 2007

0% 5% 10% 15% 20%

Footwear

Wood and Cork

Mineral fuels

Paper

Textiles

Food industries

Chemical products

Plastic and Rubber

Clothing

Base metals

Transport Equipment

Machinery

Exports

Imports

(% total)

Automotive

Biotechnology

Forestry

Moulds

Technicalfabrics

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

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 L

SIGNIFICANT GROWTH OF SERVICES EXPORTS SIGNIFICANT GROWTH OF SERVICES EXPORTS

3,8

10,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

1996 2007

(%)

(% GDP)

ICT ServicesTourism

Construction Services

Technical Assistance

Services

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

DIVERSIFYING EXPORT DESTINATIONS DIVERSIFYING EXPORT DESTINATIONS

(EU-EXTRA EXPORTS IN % TOTAL EXPORTS)

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

Source: Eurostat

20,0

23,3

18

19

20

21

22

23

24

2004 2007

18%

30%

... growing in Portuguese speaking countries... growing in Portuguese speaking countries

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

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

ATM - 12 000 equipments 30 services provided

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

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 - 2006

1st Austria 53.4%2nd Sweden 46.8%3rd Portugal 30.6%EU 15 14.9%

windwindhydrohydro

solarsolar

wavewave

biomassbiomass

4th world wind energy producer

A PEACEFUL COUNTRY TO INVESTA PEACEFUL COUNTRY TO INVEST

Source: Global Peace Index 2008 Economist Intelligence Unit Nations considered the most peaceful have lower index scores

Committed to the European Growth and Stability Pact

Quality of life

Diversity of qualified, multilingual workforce

Suppliers capacity for big corporations

CountryRank

Japan

Iceland

Denmark

Norway

New Zeland

Ireland

Portugal

1

2

3

4

5

6

7

Score

1.176

1.333

1.343

1.350

1.358

1.410

1.412

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

2004-2006 (Millions €)

Angola 696,8Brazil 1 210,1Cape Verde 81,8Mozambique 83,2

Access to 230 Millions Consumers

Most modern telecom networks

Logistic Platforms

Network and privileged access

Portugal – IndiaPortugal – India

Economic PartnersEconomic Partners

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

(Mil

lio

ns

€)

Source: Eurostat

PORTUGAL - INDIAPORTUGAL - INDIA EXPORTS AND IMPORTSEXPORTS AND IMPORTS

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

0,6% of total

0,1% of total

A distant partnerA distant partner

0

50

100

150

200

250

300

350

400

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Import

Export

PORTUGAL – INDIAPORTUGAL – INDIA

EXPORTS AND IMPORTS - MAIN PRODUCTS - 2007EXPORTS AND IMPORTS - MAIN PRODUCTS - 2007

(% o

f to

tal)

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

Source: Eurostat

EXPORTSEXPORTS

14,7

8,87,8

6,05,4 5,4

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

Machineryand

mechanicalappliances

Raw hidesand leather

Electricalmachinery

andequipment

Plastics Aluminium Footwear

IMPORTSIMPORTS

17,5

11,6

7,86,8 6,5

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

Cotton Mineral fuels Electricalmachinery and

equipment

Footwear Fish andcrustaceans

(Mil

lio

ns

€)

Source: Eurostat

PORTUGAL - INDIAPORTUGAL - INDIA 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 SA

C O N F E D E R A Ç Ã O E M P R E SA R I A L

0

50

100

150

200

250

300

350

400

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Import

Export

TR

AD

E I

N G

OO

DS

TR

AD

E I

N G

OO

DS

TR

AD

E I

N S

ER

VIC

ES

TR

AD

E I

N S

ER

VIC

ES

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Import

Export

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