PORTUGAL

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Portugal, officially the Portuguese Republic, is a country located on the Iberian Peninsula, in Southwestern Europe, and whose territory also includes the Macaronesian archipelagos of the Azores and Madeira. It features the westernmost point in continental Europe, its mainland west and south border with the North Atlantic Ocean and in the north and east, the Portugal-Spain border constitutes the longest uninterrupted border-line in the European Union. Its archipelagos form two autonomous regions with their own regional governments. In the mainland, Alentejo region occupies the biggest area but is one of the regions in Europe with a lower population density. Lisbon is the capital and largest city by population, being also the main spot for tourists alongside Porto and Algarve.

One of the oldest countries in Europe, its territory has been continuously settled and fought over since prehistoric times. The territory was inhabited by the Celtic and Iberian peoples, such as the Lusitanians, the Gallaecians, the Celtici, Turduli, and the Conii. These peoples had some commercial and cultural contact with Phoenicians, ancient Greeks and Carthaginians. It was later ruled by the Romans, followed by the invasions of Germanic peoples together with the Alans, and later the Moors, who were eventually expelled during the Reconquista. Founded first as a county within the Kingdom of León in 868, the country officially gained independence as the Kingdom of Portugal with the Treaty of Zamora in 1143.

During the 15th and 16th centuries Portugal led the Age of Discovery and established one of the longest-lived maritime and commercial empires, becoming one of the main economic and political powers of the time. By the early 19th century, events such as the 1755 Lisbon earthquake, the country's occupation during the Napoleonic Wars, and the resulting independence of Brazil in 1822 led to a marked decay of Portugal's prior opulence. This was followed by the civil war between liberal constitutionalists and conservative absolutists over royal succession from 1828 to 1834. The 1910 revolution deposed Portugal's monarchy, and established the democratic but unstable Portuguese First Republic, later superseded by the authoritarian regimes of Ditadura Nacional (National Dictatorship) and Estado Novo (New State). Democracy was restored after the Carnation Revolution (1974), ending the Portuguese Colonial War and eventually losing its remaining colonial possessions.

Portugal has had a profound cultural, architectural and linguistic influence, with a legacy of around 250 million Portuguese speakers around the world. It is a developed country with an advanced economy, and big tourism and infrastructure industries. A member of the United Nations, the European Union, the Schengen Area and the Council of Europe, Portugal was one of the founding members of NATO, the eurozone, the OECD, and the Community of Portuguese Language Countries. 

ROMAN PORTUGAL

Romans first invaded the Iberian Peninsula in 219 BC. The Carthaginians, Rome's adversary in the Punic Wars, were expelled from their coastal colonies. During Julius Caesar's rule, almost the entire peninsula was annexed to Rome. The conquest took two hundred years and many died, including those sentenced to work in slave mines or sold as slaves to other parts of the empire. Roman occupation suffered a setback in 155 BC, when a rebellion began in the north. The Lusitanians and other native tribes, under the leadership of Viriathus, wrested control of all of western Iberia. Rome sent legions to quell the rebellion but were unsuccessful. Roman leaders bribed Viriathus's allies to kill him in 139 BC; he was replaced by Tautalus.

In 27 BC, Lusitania gained the status of Roman province. Later, a northern province was separated from the province of Tarraconensis, under Emperor Diocletian's reforms, known as Gallaecia. There are still ruins of castros (hill forts) and remains of the Castro culture, like Conímbriga and Mirobriga. 

AGE OF DISCOVERIES

In 1383 John I of Castile, Beatrice of Portugal, and Ferdinand I of Portugal claimed the throne of Portugal. John of Aviz, later John I of Portugal, defeated the Castilians in the Battle of Aljubarrota, and the House of Aviz became the ruling house. The new ruling dynasty led Portugal to the limelight of European politics and culture. They created and sponsored literature, such as a history of Portugal, by Fernão Lopes.

Portugal spearheaded European exploration of the world and the Age of Discovery under the sponsorship of Prince Henry the Navigator. Portugal explored the Atlantic, encountering the Azores, Madeira, and Portuguese Cape Verde, which led to the first colonization movements. The Portuguese explored the Indian Ocean, established trade routes in most of southern Asia, and sent the first direct European maritime trade and diplomatic missions to China (Jorge Álvares) and Japan (Nanban trade). In 1415, Portugal acquired its first colonies by conquering Ceuta, in North Africa. Throughout the 15th century, Portuguese explorers sailed the coast of Africa, establishing trading posts for commodities, ranging from gold to slavery. Portugal discovered the Portuguese India Armadas via the Cape of Good Hope.

The Treaty of Tordesillas of 1494 was intended to resolve a dispute created following the return of Christopher Columbus and divided the newly located lands outside Europe between Portugal and Spain along a line west of the Cape Verde islands, off the west coast of Africa. In 1498 Vasco da Gama became the first European to reach India by sea, bringing economic prosperity to Portugal and helping to start the Portuguese Renaissance. In 1500, the Portuguese explorer Gaspar Corte-Real reached what is now Canada and founded the town of Portugal Cove-St. Philip's, one of many Portuguese colonies of the Americas.

In 1500, Pedro Álvares Cabral landed on Brazil and claimed it for Portugal. Ten years later, Afonso de Albuquerque conquered Goa in India, Muscat and Ormuz in the Persian Strait, and Malacca, now in Malaysia. Thus, the Portuguese empire held dominion over commerce in the Indian Ocean and South Atlantic. Portuguese sailors set out to reach Eastern Asia by sailing eastward from Europe, landing in Taiwan, Japan, Timor, Flores, and the Moluccas. Although it was believed the Dutch were the first Europeans to arrive in Australia, there is evidence the Portuguese may have discovered it in 1521.

Between 1519 and 1522 Ferdinand Magellan organized a Spanish expedition to the East Indies which resulted in the first circumnavigation of the globe. The Treaty of Zaragoza, signed in 1529 between Portugal and Spain, divided the Pacific Ocean between Spain and Portugal.

MILITARY

The armed forces have three branches: Navy, Army and Air Force, commanded by the Portuguese Armed Forces General Staff. They serve primarily as a self-defence force whose mission is to protect the territorial integrity of the country but can also be used in offensive missions in foreign territories. In recent years, the Portuguese Armed Forces have carried out several NATO and European Union military missions in various territories, namely in Afghanistan, Iraq, Lebanon, Bosnia and Herzegovina, Kosovo, Mali, Central African Republic, Somalia, Mozambique and East Timor. As of 2023, the three branches numbered 24.000 military personnel. Portuguese military expenditure in 2023 was more than 4 billion US$, representing 1.48 per cent of GDP.

The Army of 11,000 personnel comprises three brigades and other small units. An Infantry Brigade (mainly equipped with Pandur II APC, M114 howitzer and MIM-72 Chaparral air defence systems), a Mechanized Brigade (mainly equipped with Leopard 2 A6 tanks and M113A2 APC) and a Rapid Reaction Brigade (consisting of Paratroopers, Commandos, Rangers and Artillery Regiment). The Navy (7,000 personnel, of which 900 are marines), the world's oldest surviving naval force, has five frigates, two corvettes, two submarines, and 20 oceanic patrol vessels. The Air Force (6,000 personnel) has the Lockheed F-16M Fighting Falcon as the main combat aircraft.

In addition to the three branches of the armed forces, there is the National Republican Guard, a security force subject to military law and organization (gendarmerie) comprising 25,000 personnel. This force is under the authority of both the Defence and the Interior Ministry. It has provided detachments for participation in international operations in Iraq and East Timor.

The United States maintains a military presence with 770 troops in the Lajes Air Base at Terceira Island, in the Azores. The Allied Joint Force Command Lisbon (JFC Lisbon) is one of the three main subdivisions of NATO's Allied Command Operations. 

ECONOMY

Portugal is a developed and high-income country with a GDP per capita of 83% of the EU27 average in 2023 (an increase from 79% in 2022) and a HDI of 0.874 (the 42th highest in the world) in 2021. It holds the 14th largest gold reserve at its national central bank, has the 8th largest proven reserves of lithium, with total exports representing 49% of its GDP in 2022. Portugal has been a net beneficiary of the European Union budget since it joined the union, then known as EEC, in 1986.

By the end of 2022, GDP (PPP) was $44,963 per capita, according to the OECD. In 2021, Portugal had the 4th lowest GDP per capita (PPP) of the eurozone out of 19 members, and the 8th lowest of the European Union out of 27 member-states. In 2022, labour productivity had fallen to the fourth lowest among the 27 member-states of the European Union (EU) and was 35% lower than the EU average. Within the EU, Portugal's economy ranks lower than most Western states.

Portugal was an original member of the eurozone. The national currency, the euro (€) started transitioning from the Portuguese Escudo in 2000 and consolidated in 2002. Portugal's central bank is the Banco de Portugal, an integral part of the European System of Central Banks. Most industries, businesses and financial institutions are concentrated in the Lisbon and Porto metropolitan areas – the Setúbal, Aveiro, Braga, Coimbra, Leiria and Faro districts are the biggest economic centres outside these two main areas. According to World Travel Awards, Portugal was Europe's Leading Golf Destination in 2013.

Since the Carnation Revolution of 1974, which culminated in the end of one of Portugal's most notable phases of economic expansion, a significant change has occurred in the nation's annual economic growth. After the turmoil of the 1974 revolution, Portugal tried to adapt to a changing modern global economy, a process that continues. Since the 1990s, Portugal's public consumption-based economic development model has changed to a system focused on exports, private investment and the development of the high-tech sector. Consequently, business services have overtaken more traditional industries such as textiles, clothing, footwear and cork (Portugal is the world's leading cork producer), wood products and beverages.

In the 2010s, the Portuguese economy suffered its most severe recession since the 1970s, which resulted in the country receiving a 78-billion-euro bailout from the European Union and the International Monetary Fund in May 2011. At the end of 2023, the share of debt as percentage of GDP fell below 100%, to 99.1%.

The average salary is €1,046 per month, excluding self-employed individuals and the minimum wage, which is regulated by law, is €820 per month (paid 14 times per annum) as of 2024. The Global Competitiveness Report for 2019, published by the World Economic Forum, placed Portugal 34th. The Numbeo quality of life index placed Portugal 20th in the world in 2023.

Companies listed on Euronext Lisbon stock exchange like EDP, Galp, Jerónimo Martins, Mota-Engil, Novabase, Semapa, Portucel Soporcel, Portugal Telecom and Sonae, are amongst the largest corporations by number of employees, net income or international market share. The Euronext Lisbon is the major stock exchange and part of the pan-European group of stock exchanges Euronext. The PSI-20 is Portugal's most selective and widely known stock index.

The OECD economic reports since 2018 show recovery. Rents and house prices have skyrocketed in Portugal, particularly Lisbon, where rents jumped 37% in 2022. The 8% inflation rate in the same year exacerbated the problem. According to the IMF, Portugal's economic recovery from the COVID pandemic in 2022 was substantially better than the EU average. Although modest, economic growth continued in 2023 while inflation continued decreasing to 5%.

In 2024 the annual inflation level is forecast at 2.3% accompanied by a small economic growth.

Agriculture in Portugal is based on small to medium-sized family-owned dispersed units. However, the sector also includes larger scale intensive farming, export-oriented agrobusinesses. The country produces a variety of crops and livestock products, including: tomatoes, citrus, green vegetables, rice, wheat, barley, maize, olives, oilseeds, nuts, cherries, bilberry, table grapes, edible mushrooms, dairy products, poultry and beef. According to FAO, Portugal is the top producer of cork and carob in the world, accounting for about 50% and 30% of world production, respectively. It is the third largest exporter of chestnuts and third largest European producer of pulp. Portugal is among the world's top ten largest olive oil producers and fourth largest exporter. The country is one of the world's largest exporters of wine, reputed for its fine wines. Forestry has played an important economic role among the rural communities and industry. In 2001, the gross agricultural product accounted for 4% of the economy; in 2022 it was 2%.

ENERGY

Portugal has considerable resources of wind and hydropower. In 2006, the world's then largest solar power plant, the Moura Photovoltaic Power Station, began operating, while the world's first commercial wave power farm, the Aguçadoura Wave Farm, opened in the Norte region (2008). By 2006, 66% of the country's electrical production was from coal and fuel power plants, while 29% were derived from hydroelectric dams, and 6% by wind energy. In 2008, renewable energy resources were producing 43% of the nation's electricity, even as hydroelectric production decreased with severe droughts. As of 2010, electricity exports had outnumbered imports and 70% of energy came from renewable sources.

Portugal's national energy transmission company, Redes Energéticas Nacionais (REN), uses modelling to predict weather, especially wind patterns. Before the solar/wind revolution, Portugal had generated electricity from hydropower plants on its rivers for decades. New programmes combine wind and water: wind-driven turbines pump water uphill at night; then water flows downhill by day, generating electricity, when consumer demand is highest. Portugal's distribution system is now two-way. It draws electricity small generators, like rooftop solar panels. 

TOURISM

Travel and tourism is an extremely important part of Portugal's economy. It has been necessary for the country to focus upon its niche attractions, such as health, nature and rural tourism, to stay ahead of its competitors.

Portugal is among the top 20 most-visited countries, receiving an average of 20,000,000 foreign tourists each year. In 2014, Portugal was elected The Best European Country by USA Today. In 2017, Portugal was elected both Europe's Leading Destination and in 2018 and 2019, World's Leading Destination.

Tourist hotspots in Portugal are: Lisbon, Cascais, Fatima, Algarve, Madeira, Porto and Coimbra. Lisbon attracts the sixteenth-most tourists among European cities (with seven million tourists occupying the city's hotels in 2006).

WORLD GEOGRAPHY

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