A. COUNTRY DATA 1. Profile Population: 9.8 MILLION Population growth rate: 0.0 Religion(s): Predominantly Roman Catholic Government system: Parliamentary democracy Language(s): Portuguese Work week: 40 hours, Mon.-Fri. 2. Domestic Economy 1993 1994 1995E GDP 79,497 84,266 90,165 GDP growth rate -1.0 1.0 2.0 GDP per capita 8,111 8,598 9,200 Government spending/GDP 50.0 51.0 52.0 Inflation 6.5 6.0 5.5 Unemployment 6.0 7.0 6.0 Foreign exchange reserves 21,785 21,000 20,000 Average exchange rate per USD 1.00 160.80 171.00 180.00 Foreign debt 19,678 20,500 21,500 Debt service ratio 16.2 18.2 20.0 (MISSING: Payments on foreign debt to foreign income US Econ/Military assistance 90.5 81.5 0.5 3. Trade Total country exports 15,461 16,235 19,200 Total country imports 23,344 24,500 25,970 US exports 734.8 870.0 1,000 US imports 790.0 850.0 900.0 US share of host country imports 3.1 3.6 3.7 Imports of manufactured goods 19,215 19,600 20,300 - From US 425.0 500.0 600.0 - US share of manufactured imports 2.2 2.6 3.0 Manufactured goods trade balance with US -239.8 -154.0 -50.0 Projected annual average growth rate from US -37.0 3.0 4.0 Imports of agricultural goods 4,129 4,500 4,800 - From US 310 370 400 - US share of ag imports 7.5 8.2 8.3 - Ag goods trade balance with US 119.0 170.0 200.0 Trade balance with 3 leading partners -3,520 -3,100 -2,800 Principal US exports: Animal Feed, Soybeans, Corn Gluten Feed, Coal, Computer Equipment Principal US imports: Apparel, Textiles, Footwear, Cork 4. Investment FOREIGN DIRECT INVESTMENT By Country of Origin (Percent of Total Investment) 1990 1991 1992 United Kingdom................ 19.9 20.1 29.7 Germany....................... 5.7 3.3 5.5 France........................ 16.7 11.6 17.8 Spain......................... 14.1 12.1 8.0 Italy......................... 1.4 1.7 0.7 Switzerland................... 4.9 5.5 3.1 Other OECD European countries. 20.1 20.1 17.6 USA.......................... 3.2 8.7 4.1 Other countries............... 14.0 16.9 13.6 Source: Bank of Portugal FOREIGN DIRECT INVESTMENT Industry Sector Destination 1990 1991 1992 Processing industry........... 19.0 21.7 18.0 Construction & public works... 8.7 5.2 4.3 Banks & other financial institutions, insurance, real estate transactions & services rendered to firms............. 60.6 59.9 63.3 Others........................ 17.7 13.2 14.4 (including wholesale & retail trade, restaurants & hotels).................. 8.5 8.4 8.0 Source: Bank of Portugal PORTUGUESE DIRECT FOREIGN INVESTMENT ABROAD (millions of dollars) 1990 1991 1992 162 601 696 Portuguese direct foreign investment abroad was concentrated mainly in the financial and industrial sectors. Spain was the main country of destination, accounting for 52 percent of total Portuguese investment abroad. The United States was the destination of 1.8 percent of Portuguese investment abroad. Source: Bank of Portugal (I) MAJOR FOREIGN INVESTORS The following table ranks the largest foreign firms among the top one hundred firms in Portugal based on turnover. There are 39 foreign firms in the top 100, an increase of 7 from the 1990 survey. MAJOR FOREIGN DIRECT INVESTORS Rank Company Turnover 1992 (millions dollars) 4 Renault 1,120 6 Shell 966 8 Mobil Oil USA 733 9 Makro 729 10 Supa Supermarkets 722 11 Renault Gest 640 12 Modelo Sprmarkets 598 14 Fiat 568 16 General Motors USA 468 18 BP 462 19 Salvador Caetano(Toyota) 457 20 Ford USA 450 21 Fiat 450 25 Citroen 347 35 Nestle 276 36 Carrefour 269 38 IBM USA 254 39 Siemens 249 42 Centralcer 235 43 Lever 231 44 Auto-Sueco 229 50 Philips 216 53 Baviera 211 57 Modelo Sprmarkets 189 58 Neste 188 60 Cablesa 182 61 Mitsubishi 180 62 Sony 177 63 Rover 166 66 Texas Instruments USA 165 68 Secil 163 76 Mercedes Benz 151 80 Bento Pedroso 144 82 Cepsa 141 84 Hoechst 139 90 Esso USA 130 92 Acatel 129 94 Celbi 127 98 Maconde 124 Note: This data excludes financial institutions. Source: "Expresso" annual survey dated Nov. 1993