COUNTRYPROFILE PORTUGAL

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WORLD COMPETITIVENESSRANKING 2019

All data are available from theWorld Competitiveness Online.

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Statistical tables

Factor I: Economic Performance

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1

BASIC FACTS

Capital

Land area (square km '000) 922018

Exchange Rate (per $) 0.8472018

Population - market size (millions) 10.262018

38

Gross Domestic Product (GDP) (US$ billions) 237.92018

43

GDP (PPP) per capita (US$) 32,0772018

36

Real GDP growth (%) 2.12018

45

Consumer price inflation (%) 1.172018

12

Unemployment rate (%) 7.002018

46

Labor force (millions) 5.232018

37

Current account balance (% of GDP) -0.612018

37

Direct investment stocks inward ($bn) 143.62017

37

Direct investment flows inward (% of GDP) 2.042018

34

PEER GROUPS RANKINGSEUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries)

COMPETITIVENESS TRENDS - OVERALL

PORTUGALOVERALL PERFORMANCE (63 countries) Rank

Lisbon

CHALLENGES IN 2019Keep the structural reduction of public deficit to achieve a

permanent surplus and reduce public debt.

Porto Business School, University of Porto, Porto

COMPETITIVENESS LANDSCAPE

3639 39

33

39

2015 2016 2017 2018 2019

55

26

34

48

30

53 51

40

1926

41 4347

54

31

4134 32

2128

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Tax

Pol

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Inst

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Busi

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Leg

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Soci

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Prod

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Effi

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Man

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Prac

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Att

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Basi

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Tec

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Economic Performance Government Efficiency Business Efficiency Infrastructure

23 26 26 21 26

2015 2016 2017 2018 2019

23 23 2421

23

2015 2016 2017 2018 2019

• Keep the structural reduction of public deficit to achieve a permanent surplus and reduce public debt.

• Guarantee a stable yet more significant economic growth in a context of international economic constraints.

• Reinforce a national strategy for digital transformation that becomes a cross-sectorial innovation and entrepreneurship reference to the overall Portuguese economy.

• Agreement of major political parties on an education policy emphasising STEM; developing well-educated, responsible citizens able to embrace continuous emerging new technologies.

• Reduce bureaucracy and improve efficiency of judicial system.

Provided by:Porto Business School, University of Porto, Porto

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IMPROVEMENTSWCY 2018

WCY 2019 DECLINES

WCY 2018

2.1.02 Government budget surplus/deficit (%) -2.96 -0.45 1.2.02 Current account balance 0.54

2.5.02 Homicide 1.0 0.6 2.3.08 Exchange rate stability 0.025

1.4.08 Long-term unemployment 5.10 3.60 1.1.18 Gross fixed capital formation - real growth 9.00

1.5.01 Consumer price inflation 1.56 1.17 2.4.14 Start-up days 5.0

1.4.07 Unemployment rate 8.90 7.00 2.3.13 Bribery and corruption 5.00

1.2.12 Exports of commercial services ($bn) 29.15 34.14 2.4.10 Competition legislation 5.84

1.4.09 Youth unemployment 23.90 20.30 1.1.14 Real GDP growth 2.7

4.3.18 Number of patents in force 26.4 30.3 1.1.15 Real GDP growth per capita 2.89

1.2.25 Tourism receipts 6.84 7.81 2.4.11 Parallel economy 6.20

4.4.18 Renewable energies (%) 22.6 25.4 2.1.10 Tax evasion 5.10

2.4.07 Government subsidies 0.45 0.40 3.3.10 Stock market capitalization (%) 32.69

1.2.08 Exports of goods ($bn) 62.21 68.45 3.4.04 Credibility of managers 6.00

4.3.05 Business expenditure on R&D (%) 0.61 0.67 3.5.06 Digital transformation in companies 6.36

1.2.13 Exports of commercial services (%) 14.21 15.57 4.5.01 Total public expenditure on education 6.0

1.1.20 GDP per capita 21,159 23,176 2.2.12 Real personal taxes 3.31

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

PORTUGALCOMPETITIVENESS EVOLUTION

-0.61

3.78

4.53

2.1

2.33

5.03

4.17

5.0

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2019

2.76

KEY ATTRACTIVENESS INDICATORS

From a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

0.046

4.37

6.5

26.87

4.94

5.25

2.8%4.2%5.6%6.9%9.7%11.1%18.1%20.8%37.5%38.9%43.1%54.2%68.1%76.4%77.8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Effective legal environmentCompetency of government

Strong R&D cultureCompetitive tax regime

Quality of corporate governanceAccess to financing

Effective labor relationsDynamism of the economy

High educational levelBusiness-friendly environmentPolicy stability & predictability

Open and positive attitudesReliable infrastructureCost competitiveness

Skilled workforce

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WORLD COMPETITIVENESSDIGITAL RANKING 2018

All data are available from theWorld Competitiveness Online.

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2019 release: 24th September

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Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 2

10.5 4 4 2 2

2014 2015 2016 2017 2018

30 29 31 33 32

31 29 31 31 27

33 30 35 37 36

30 31 31 35 32

OVERALL

Future readiness

PEER GROUPS RANKINGS

EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries)

COMPETITIVENESS & DIGITAL RANKINGS

Technology

DIGITAL TRENDS - OVERALL

PORTUGAL

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

Knowledge

30 29 31 33 32

43 36 39 3933

2014 2015 2016 2017 2018

Digital

Competitiveness

20 1921 22 21

2014 2015 2016 2017 2018

19 1920

2120

2014 2015 2016 2017 2018

27 23 27 34

36 19 45 3932

32 35 27 30

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integration

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

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u Overall top strengths

w Overall top weaknesses

Subfactors 2014 2015 2016 2017 201834 29 31 30 23

21 20 21 18 27

37 37 35 36 34

Talent Rank Rank Rank

Educational assessment PISA - Math 27 w 48 28 International experience 38 13 26 Foreign highly-skilled personnel 21 38 16 Management of cities 21 u 11 31u Digital/Technological skills 11 15 28 Net flow of international students 30 37 46

Subfactors 2014 2015 2016 2017 201822 20 20 19 19

47 44 50 50 45

38 40 38 43 39

Regulatory framework Rank Rank Rank

Starting a business 26 30 u 6 Enforcing contracts 18 29 w 56u Immigration laws 7 41 w 48 Development and app. of technology 24 45 u 12 Scientific research legislation 29 41 33 Intellectual property rights 26 46 w 55

Subfactors 2014 2015 2016 2017 201830 33 31 34 35

30 25 27 40 27

29 30 32 32 30

Adaptive attitudes Rank Rank Rank

E-Participation 40 37 33 Internet retailing 33 13 24 Tablet possession 33 30 36 Smartphone possession 40 w 48 28 Attitudes toward globalization 21 31

Training & education Scientific concentration

Talent

IT integration

Business agility IT integration

Scientific concentration

Capital Technological framework

FACTORS BREAKDOWN - STRENGHTS AND WEAKNESSES

PORTUGAL

FUTURE READINESS

TECHNOLOGY

Technological framework

Opportunities and threats E-GovernmentInnovative firms Public-private partnerships

IT & media stock market capitalization Communications technology

Regulatory framework

Capital

KNOWLEDGE

Agility of companies Cyber securityUse of big data and analytics Sofware piracyKnowledge transfer

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Funding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandInvestment risk Internet users

Training & education

Employee training Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capitaHigher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

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WORLD TALENTRANKING 2018

All data are available from theWorld Competitiveness Online.

Visit our eShop

2019 release: 19th November

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Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

6.0 % 13u 29.3 % 3 13.70 ratio 25 9.85 ratio 10 5.03 Survey [0..10] 24w 5.16 Survey [0..10] 48u 48.91 % 5 7.08 Survey [0..10] 22

Value

65.30 index 19 6.58 Survey [0..10] 33 5.86 Survey [0..10] 33 5.14 Survey [0..10] 29 8.25 Survey [0..10] 21 6.07 Survey [0..10] 21w 19,069 US$ 35w 156,994 US$ 33 18.02 % 30 8.23 Survey [0..10] 16

Value

0.79 % 31u 6.54 Survey [0..10] 8 6.70 Survey [0..10] 25w 5.12 Survey [0..10] 38 5.64 Survey [0..10] 31 7.07 Survey [0..10] 13 6.43 Survey [0..10] 14 7.45 Survey [0..10] 14u 7.55 Survey [0..10] 8u 8.52 Survey [0..10] 5w 1.63 number 37 496 Average 22

Investment & Development 2018 Rank

Health infrastructure meets the needs of society

2018 Rank

Total public expenditure on education Percentage of GDP

ApprenticeshipsEmployee training is a high priority in companies

Readiness 2018 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Personal security and private property rights are adequately protected

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Educational system The educational system meets the needs of a competitive economy

Science in schools is sufficiently emphasized

University education meets the needs of a competitive economy

are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

PORTUGAL

Remuneration in services professions Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Index of a basket of goods & services in the main city, including housing (New York City = 100)

Government expenditure on education per studentPercentage of GDP per capita (secondary education)

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Pupil-teacher ratio (secondary education) Ratio of students to teaching staff

are sufficiently implemented

Female labor force Percentage of total labor force

Labor force growth Percentage change

Skilled labor is readily available

Finance skills

Cost-of-living index

IMD World Talent Ranking 2018

OVERALL PERFORMANCE (63 countries)

26

22

25 24

17

6 68 7 7

41

37

40

36

29

46

3331 31

22

2014 2015 2016 2017 2018

Overall

Investment &Development

Appeal

Readiness

7

2917

22

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

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