Portugal  

Portugal performs well in this area, with a moderate unemployment rate, at 8%, and a low inflation rate, at 3%, indicating strong fundamentals. Portuguese workers have access to a large amount of physical capital, including office space and machinery, placing the country 28th on this variable. The banking sector is efficient, with only 0.8% of loans in default and a narrow lending and borrowing margin, ranking Portugal 14th and 41st, respectively, on these variables. Levels of household expenditure, at 25% of GDP, indicate reasonable domestic demand, but the domestic savings rate is relatively low, at 15% of GDP. Portugal’s ability to attract foreign direct investment could be improved, in order to move up from the third quartile, where it currently stands on this variable. A decent ranking in terms of export revenues to the cost of imports indicates strong terms of trade and a raw material concentration of just over 1% of GDP points toward a nation with a good level of industrialisation.

Portugal’s internet infrastructure could be improved as bandwidth and numbers of secure internet servers are both above the global averages. Access to personal computers is low, at 17 per 100 people. Understandably, therefore, ICT and high-tech exports constitute a low proportion of Portugal’s exported goods, at around 9% each. Expenditure on R&D is above the international median, at 0.8% of GDP, ranking Portugal at 33rd with regard to this variable. All this notwithstanding, value added in the service industry is impressive at 72% of GDP, and a high number of royalty receipts means the country is able to capitalise on its intellectual property. Eight formal procedures are required to start a business in Portugal, ranking the country 31st on this variable. The low barriers to entry encouraged more than 28,000 new business registrations in 2007.

Portuguese citizens report high levels of political rights and civil liberties. This high ranking can be attributed to well-regulated and competitive elections, along with significant checks and balances throughout the political system. Portugal also ranks first, globally, in terms of open political competition for both the executive and legislative branches of government, and in regulation of the electoral system. The judiciary is suitably independent. There are, however, fewer constraints on the power of the executive than one might expect, the country only gaining a rank of 45th in this regard. Due to a fundamental change in the regime less than 30 years ago, the political system as a whole is not deemed entirely stable.

Education expenditure in Portugal is high at approximately $8,000 per student in primary and secondary education, placing the country within the top quartile on this factor. Enrolment in primary school is high at 98%, and these students benefit from a low pupil to teacher ratio of 11 students to each teacher, as well as parity across the genders with regard to enrolments. Retention is also strong with secondary school enrolment at 97% and tertiary level enrolment standing at 55%, ranking the country in the top 30 on both variables. On average, the Portuguese labour force has 4.9 years in secondary education, and a high 4.1 years of tertiary education. These figures are near the global average, producing rankings of 68th and 49th, respectively.

For the average Portuguese citizen, health-adjusted life expectancy is high at 69 years. Portuguese people are well served with 34 medical practitioners per 10,000 people, ranking the country 14th, globally, on this measure. Hospital bed spaces, however, are at a low level of 37 per 10,000 people. Infant mortality rates are among the lowest in the world with only four instances per 1,000 births, positioning Portugal within the top 10 according to this variable. A very low percentage of the population is undernourished, ranking Portugal third, internationally. Portugal obtains an extremely high score in terms of public access to sanitation facilities and 90% of the population is satisfied with the quality of water. However, Portugal performs near the global average on other subjective measures of health.* Personal health satisfaction levels place Portugal at 62nd on this variable, while approximately one in four Portuguese claim health problems.* In 2008, more than seven out of 10 respondents reported feeling well rested, while 29% reported feeling consistent pain the previous day.*

Portugal has few or no security problems regarding refugees, social groups with a history of discrimination, or human flight from dangerous conditions. Portugal scores very well on variables that assess whether the government uses violent methods against its own citizens, and there were no casualties due to civil war in 2008. With only 16 homicides per 1,000,000 capita, Portugal performs well on this variable, ranking, 19th, globally. Civilians’ perceptions of their own safety are average, with 66% feeling safe walking alone at night, 9% claiming to have been assaulted in 2008, and over one in 10 reporting having had property stolen in the same year.*

Enforcement of the rule of law and regulation of economic and commercial activity are effective, ranking Portugal in the top 25 on both variables. The Portuguese civil service is effective in carrying out the objectives set by political leaders, and citizens are afforded free and fair participation in the political system. Public opinion of government and local businesses is, however, distrustful, with 85% and 94% of poll respondents believing in widespread corruption in these entities, respectively.* While over seven out of 10 individuals trust in the honesty of elections, only 44% have confidence in the judicial system.* The military holds the trust of 85% of Portuguese citizens, ranking this country 24th with respect to this variable.*

Portuguese citizens enjoy unconstrained freedom of movement, religion, and speech. Tolerance of diversity is clearly important in Portugal, with three-quarters of respondents believing it a good place for ethnic minorities, and 78% feeling that immigrants are provided with a good environment in which to settle.* Only 77% of respondents, however, indicate their satisfaction with the freedom to choose according to their own preferences.* This places Portugal at 45th in the international rankings with respect to this variable.*

Social capital in Portugal is at an average level, with 17% of people believing others can be trusted and high numbers of respondents feeling that friends are moderately important. Three in five citizens are married, indicating that there is potential for strong familial support, and 90% feel that they can rely on friends and family in times of need.* Portugal performs poorly in terms of helping strangers and volunteering, ranking the country 80th and 88th, respectively, on these variables.* Similarly, only 17% of respondents claim to have donated to charity in the month before the survey, which puts Portugal 86th according to this variable.* The Portuguese are moderately religious, giving them access to a religious support network. Data on Portuguese citizens’ membership of groups are unavailable.

* Data taken from the Gallup World Poll

• Back to top