World Country Guide

Business Profile

Economy
Portugal was traditionally an agrarian economy but since joining the EU in 1986, the industrial and especially the service sectors of the economy have grown considerably by comparison. Agriculture still employs 12 per cent of the workforce – unusually high by Western European standards – and contributes 3 per cent of GDP, producing wheat, maize, tomatoes, potatoes and grapes. Production has undergone a relative decline so that Portugal now imports a sizeable proportion of its foodstuffs after having long been self-sufficient. The manufacturing sector is dominated by the textile and footwear industries and automobiles, which now account for 15 per cent of total exports. Other important products are paper, cork and other wood products, electrical appliances, chemicals and ceramics. Both foreign and internal investment have been high, attracted by Portugal’s relatively low labour costs and the recent modernisation of much of the country’s infrastructure. Many former state-owned industries have been sold off under a gradual privatisation programme which began in 1989. During the last five years, unemployment has hovered around 5 per cent while inflation has not risen above 4 per cent; the current figures are 4.4 and 4.1 per cent respectively. Portugal joined the Eurozone upon its inauguration in 1999. Unfortunately since then, the economy has stagnated – growth fell to below 1 per cent in 2001/2 – before contracting by 1 per cent in 2003. The main reasons have been a reduction in domestic demand and government spending cuts – demanded under the terms of Eurozone membership – to tackle the country’s large budget deficit.
Although Britain has historically been Portugal’s main trading partner, the growth of Anglo-Portuguese trade has failed to keep pace with that of Portugal’s other trading partners, particularly Germany, France, Spain and Italy. The Portugal Investment Agency can supply further information (website: www.investinportugal.pt).

Business
Businesspeople are expected to dress smartly and formal attire is expected in some dining rooms and for important social functions. English is widely spoken in business circles, although when visiting a small family business it is best to check in advance. Visiting cards are generally only exchanged by more senior members of a company. July and August are best avoided. Office hours: Mon-Fri 0900-1300 and 1500-1900.

Commercial Information
The following organisations can offer advice: Associao Comercial de Lisboa, Cmara de Comrcio e Indstria Portuguesa, Rua das Portas de Santo Anto 89, 1169-022 Lisbon (tel: 2132 24050; fax: 2132 24051; e-mail: geral@port-chambers.com; website: www.port-chambers.com); or Confederao do Comrcio e Servios de Portugal (CCP), Avenida Dom Vasco de Gama 29, 1449-032 Lisbon (tel: 2130 31380; fax: 2130 31400-1; e-mail: ccp@ccp.pt; website: www.ccp.pt).

Conferences/Conventions
Lisbon is the main centre for conventions, with venues that can seat up to 1500 people. The Lisbon Convention Centre was founded in 1987, and a major Congress centre, fully integrated with the facilities offered by the Lisbon International Fair, opened in 1989. The fair is a department of the Portuguese Industrial Association, which promotes trade fairs, exhibitions and meetings.
After the EXPO ’98 in Lisbon, the North International Area became the new Lisbon Exhibition Centre, with an area of 80,000 sq m (743,200 sq ft), also run by the Portuguese Industrial Association. The Lisbon International Fair will now be the major congress centre in Lisbon, with a capacity for events of up to 3000 delegates. The Lisbon Convention Bureau is a non-profit-making association of companies providing support services to conference organisers. Its services directory includes details of the Congress Centre and hotels with conference facilities. For information, contact the Lisbon Convention Bureau, Rua do Arsenal 15, 1100-038 Lisbon (tel: 2103 12700; fax: 2103 12899). Lisbon opened the Belem Cultural Centre in 1992 to coincide with Portugal’s EU Presidency; it features high-quality technical equipment and facilities for meetings of up to 1400 delegates. For further information, contact the Belem Cultural Centre, Praa do Imprio, 1499-003 Lisbon (tel: 2136 12400; fax: 2136 12500; e-mail: ccb@ccb.pt; website: www.ccb.pt). Additionally, the former site of the EXPO ’98 ‘Utopia Pavillion’ has been converted into the multi-purpose Atlantic Pavillion, which can accommodate up to 16,500 seated spectators.
The city of Oporto also has two major international exhibition and congress centres. The Oporto International Exhibition Centre (Exponor) has a total area of 29,500 sq m (274,000 sq ft) with a congress centre that has a capacity for 1000 delegates; the International Congress and Exhibition Centre (Europarque) has a large and flexible exhibition hall that can host receptions for up to 12,000 delegates on a floor space of 7200 sq m (66,890 sq ft). For further information, contact the Porto Convention Bureau, Av Inferior a Ponte D. Luis 1, 53, 1 4050 Porto (tel: 2233 26751; fax: 2233 26752; e-mail: portocvb@portocvb.com; website: www.portocvb.com).