Gross domestic product (GDP) is a measure of the monetary value of all finished goods and services produced within a country’s borders in a specific time period. It is a key indicator of a country’s economic health and is used to compare the economic output of different countries.
Portugal’s GDP was estimated to be $244.4 billion in 2022, according to the International Monetary Fund (IMF). This ranks Portugal 51st in the world in terms of GDP, behind countries such as Hungary, the Czech Republic, and Greece. However, in terms of GDP per capita, Portugal ranks 38th in the world, with a GDP per capita of $22,875.
Portugal’s economy has been growing steadily in recent years, and the country is expected to continue to experience economic growth in the coming years. This growth is being driven by a number of factors, including increased tourism, exports, and investment.
Where does Portugal rank in the world by GDP?
Table of Contents
Portugal’s rank in the world by GDP is a key indicator of its economic health and development. Several key aspects can be explored to understand this ranking:
- Nominal GDP: $244.4 billion (2022)
- GDP per capita: $22,875 (2022)
- GDP growth rate: 2.8% (2022)
- GDP by sector: Services (75.4%), Industry (21.4%), Agriculture (3.2%)
- Main exports: Tourism, textiles, footwear, machinery
- Main trading partners: Spain, France, Germany, United Kingdom
- Economic outlook: Positive, with GDP growth expected to continue in the coming years
These aspects provide a comprehensive overview of Portugal’s economic performance and ranking in the world. Portugal’s relatively high GDP per capita and positive economic outlook indicate a strong and growing economy.
Nominal GDP
Nominal GDP, or current GDP, is the monetary value of all finished goods and services produced within a country’s borders in a specific year, using current prices. It is a key component in determining a country’s rank in the world by GDP, as it provides a snapshot of the overall size and value of its economy.
Portugal’s nominal GDP of $244.4 billion in 2022 reflects the total value of all goods and services produced in the country during that year. This figure is used to calculate Portugal’s GDP per capita, which is a measure of the average income of each person in the country. Portugal’s GDP per capita is $22,875, which ranks 38th in the world.
The nominal GDP of a country is important for several reasons. First, it provides a measure of the overall size and strength of the economy. A higher nominal GDP indicates a larger and more productive economy. Second, nominal GDP is used to compare the economic output of different countries. This allows policymakers and economists to assess the relative performance of different economies and identify areas for improvement.
GDP per capita
GDP per capita is a key indicator of a country’s economic well-being and standard of living. It is calculated by dividing a country’s GDP by its population. Portugal’s GDP per capita of $22,875 in 2022 ranks 38th in the world.
- Economic Development: GDP per capita is a measure of a country’s economic development. A higher GDP per capita indicates a higher level of economic development and a better standard of living for its citizens. Portugal’s GDP per capita has been steadily increasing in recent years, reflecting the country’s improving economy.
- Quality of Life: GDP per capita is also a good indicator of a country’s quality of life. A higher GDP per capita typically means that people have access to better healthcare, education, and other essential services. Portugal’s GDP per capita is relatively high, which suggests that the country’s citizens enjoy a good quality of life.
- Global Comparison: GDP per capita is a useful tool for comparing the economic performance of different countries. Portugal’s GDP per capita of $22,875 is higher than the global average of $12,283, indicating that Portugal is a relatively wealthy country.
- Economic Growth: GDP per capita can also be used to track a country’s economic growth over time. Portugal’s GDP per capita has been growing steadily in recent years, reflecting the country’s strong economic performance.
Overall, GDP per capita is a key indicator of a country’s economic health and well-being. Portugal’s GDP per capita of $22,875 in 2022 ranks 38th in the world, indicating that Portugal is a relatively wealthy country with a good quality of life.
GDP growth rate
The GDP growth rate measures the percentage change in a country’s GDP from one year to the next. It is a key indicator of a country’s economic health and is used to forecast future economic performance. Portugal’s GDP growth rate of 2.8% in 2022 is a positive sign and indicates that the country’s economy is growing.
- Economic Growth: GDP growth rate is a direct measure of a country’s economic growth. A higher GDP growth rate indicates that the economy is expanding and producing more goods and services. Portugal’s GDP growth rate of 2.8% is higher than the global average of 2.2%, indicating that Portugal’s economy is growing at a faster pace than the global economy.
- Standard of Living: GDP growth rate is also correlated with a country’s standard of living. A higher GDP growth rate typically leads to higher incomes and a better quality of life for citizens. Portugal’s GDP growth rate of 2.8% is expected to contribute to a continued improvement in the standard of living for Portuguese citizens.
- Global Competitiveness: GDP growth rate is a key factor in determining a country’s global competitiveness. A higher GDP growth rate indicates that a country is producing more goods and services and is becoming more competitive in the global marketplace. Portugal’s GDP growth rate of 2.8% is a positive sign for the country’s global competitiveness.
- Investment and Job Creation: GDP growth rate is also a key driver of investment and job creation. A higher GDP growth rate typically attracts investment and creates new jobs. Portugal’s GDP growth rate of 2.8% is expected to lead to increased investment and job creation in the country.
Overall, Portugal’s GDP growth rate of 2.8% in 2022 is a positive sign for the country’s economy. It indicates that the economy is growing and that the standard of living for Portuguese citizens is improving. The GDP growth rate also contributes to Portugal’s global competitiveness and attracts investment and job creation.
GDP by sector
The composition of a country’s GDP by sector provides insights into the structure of its economy and can influence its ranking in the world by GDP. Portugal’s GDP is primarily driven by the services sector, which accounts for 75.4% of the total. This is followed by the industry sector (21.4%) and the agriculture sector (3.2%).
- Services Sector: The services sector includes a wide range of industries, such as tourism, finance, healthcare, and education. Portugal’s strong performance in tourism, in particular, has contributed to the growth of the services sector. The country’s favorable climate, rich history, and cultural heritage make it a popular tourist destination.
- Industry Sector: The industry sector includes manufacturing, construction, and mining. Portugal’s industry sector has been growing in recent years, driven by factors such as increased exports and investment. The country has a skilled workforce and a strong manufacturing base, particularly in industries such as textiles, footwear, and machinery.
- Agriculture Sector: The agriculture sector includes farming, fishing, and forestry. Portugal’s agriculture sector is relatively small, accounting for only 3.2% of GDP. However, the country is a major producer of agricultural products such as wine, olives, and cork.
The composition of Portugal’s GDP by sector has implications for its ranking in the world by GDP. The dominance of the services sector indicates that Portugal has a developed and diversified economy. This contributes to the country’s overall economic growth and stability. Furthermore, the growth of the industry sector in recent years has helped to boost Portugal’s GDP and improve its ranking in the world.
Main exports
Portugal’s main exports play a significant role in determining its rank in the world by GDP. Exports contribute to a country’s GDP by generating revenue and stimulating economic growth. Portugal’s exports of tourism, textiles, footwear, and machinery are particularly important in this regard.
Tourism is one of Portugal’s most important industries, and it is a major contributor to the country’s GDP. In 2019, tourism accounted for 15% of Portugal’s GDP and employed over 300,000 people. Portugal’s favorable climate, rich history, and cultural heritage make it a popular tourist destination, attracting millions of visitors each year. The revenue generated from tourism helps to boost Portugal’s GDP and improve its ranking in the world.
Portugal’s textile industry is another important contributor to the country’s GDP. Portugal is a major producer of textiles, and its exports of textiles are valued at over $4 billion per year. The textile industry provides jobs for over 100,000 people in Portugal and is a key part of the country’s manufacturing sector.
Footwear is another important export for Portugal. The country is a major producer of footwear, and its exports of footwear are valued at over $2 billion per year. The footwear industry provides jobs for over 50,000 people in Portugal and is a key part of the country’s manufacturing sector.
Machinery is also an important export for Portugal. The country is a major producer of machinery, and its exports of machinery are valued at over $1 billion per year. The machinery industry provides jobs for over 25,000 people in Portugal and is a key part of the country’s manufacturing sector.
Overall, Portugal’s main exports of tourism, textiles, footwear, and machinery play a significant role in determining its rank in the world by GDP. These exports generate revenue and stimulate economic growth, which helps to improve Portugal’s ranking in the world.
Main trading partners
Portugal’s main trading partners are Spain, France, Germany, and the United Kingdom. These countries account for a significant portion of Portugal’s exports and imports, and play a major role in determining Portugal’s rank in the world by GDP.
There are several reasons why Portugal’s main trading partners are important for its GDP ranking:
- Volume of trade: Portugal’s trade with its main trading partners is substantial, both in terms of exports and imports. This high volume of trade contributes to Portugal’s GDP by generating revenue and stimulating economic activity.
- Trade surplus: Portugal typically has a trade surplus with its main trading partners, meaning that it exports more goods and services to these countries than it imports from them. This trade surplus contributes to Portugal’s GDP by increasing the country’s net exports and boosting overall economic growth.
- Foreign investment: Portugal’s main trading partners are also major sources of foreign investment. Foreign investment can help to boost Portugal’s GDP by creating jobs, increasing productivity, and providing access to new technologies and markets.
Overall, Portugal’s main trading partners play a significant role in determining the country’s rank in the world by GDP. The high volume of trade, trade surplus, and foreign investment from these countries all contribute to Portugal’s economic growth and development.
Economic outlook
A positive economic outlook, with GDP growth expected to continue in the coming years, is a key factor in determining Portugal’s rank in the world by GDP. GDP growth is a measure of the overall health and performance of an economy, and a positive outlook indicates that Portugal’s economy is expected to continue to grow and develop in the future.
There are several reasons why a positive economic outlook is important for Portugal’s GDP ranking. First, GDP growth leads to increased economic output, which can result in higher incomes and a better standard of living for Portuguese citizens. Second, GDP growth can attract foreign investment, which can further boost the economy and create jobs. Third, GDP growth can help to reduce unemployment and poverty rates.
There are several factors that contribute to Portugal’s positive economic outlook. These include:
- Strong tourism industry
- Growing exports
- Increased investment
- Stable political environment
Overall, a positive economic outlook is a key factor in determining Portugal’s rank in the world by GDP. GDP growth leads to increased economic output, which can result in higher incomes, a better standard of living, and a more prosperous future for Portugal.
FAQs on “Where does Portugal rank in the world by GDP?”
This section provides answers to frequently asked questions about Portugal’s rank in the world by GDP.
Question 1: What is GDP and why is it important?
Answer: Gross domestic product (GDP) is the monetary value of all finished goods and services produced within a country’s borders in a specific time period. It is a key indicator of a country’s economic health and is used to compare the economic output of different countries.
Question 2: Where does Portugal rank in the world by GDP?
Answer: According to the International Monetary Fund (IMF), Portugal’s GDP was estimated to be $244.4 billion in 2022, ranking it 51st in the world.
Question 3: What is Portugal’s GDP per capita?
Answer: Portugal’s GDP per capita was $22,875 in 2022, ranking it 38th in the world.
Question 4: What are the main factors contributing to Portugal’s economic growth?
Answer: Portugal’s economic growth is being driven by several factors, including increased tourism, exports, and investment.
Question 5: What is the economic outlook for Portugal?
Answer: Portugal’s economic outlook is positive, with GDP growth expected to continue in the coming years.
Summary: Portugal’s rank in the world by GDP is a key indicator of its economic health and development. Several factors, including a strong tourism industry, growing exports, and increased investment, are contributing to Portugal’s positive economic outlook.
Transition to the next article section: To learn more about Portugal’s economy, continue reading the following sections.
Tips for Understanding Portugal’s Rank in the World by GDP
Understanding Portugal’s rank in the world by GDP can provide valuable insights into the country’s economic performance and development. Here are a few tips to help you better comprehend this ranking:
Tip 1: Consider GDP per capita: While nominal GDP measures the total economic output of a country, GDP per capita provides a more accurate representation of the average income and standard of living of its citizens. Portugal’s GDP per capita is relatively high, indicating a good quality of life.
Tip 2: Analyze GDP growth rate: The GDP growth rate measures the percentage change in GDP from one year to the next. Portugal’s recent GDP growth rate has been positive, suggesting a growing economy and improving economic conditions.
Tip 3: Examine GDP by sector: The composition of GDP by sector can reveal the structure of an economy. Portugal’s economy is primarily driven by the services sector, particularly tourism. Understanding the strengths and weaknesses of different sectors can provide insights into economic diversification and potential areas for growth.
Tip 4: Identify main exports and trading partners: Exports and trading partners play a significant role in determining a country’s GDP. Portugal’s main exports include tourism, textiles, footwear, and machinery. Understanding the importance of these exports and the countries they are traded with can provide insights into Portugal’s economic relationships and global competitiveness.
Tip 5: Evaluate economic outlook: The economic outlook provides insights into the expected future performance of an economy. Portugal’s positive economic outlook, with GDP growth expected to continue, indicates a stable and growing economy.
Summary: By considering these tips, you can gain a deeper understanding of Portugal’s rank in the world by GDP and its implications for the country’s economic development and global standing.
Transition to the article’s conclusion: These tips provide a foundation for understanding Portugal’s economic performance and ranking. By applying these insights, you can better assess the country’s economic health and potential.
Conclusion
Portugal’s rank in the world by GDP provides valuable insights into the country’s economic performance and development. This comprehensive analysis has explored various aspects of Portugal’s economy, including GDP per capita, GDP growth rate, GDP by sector, main exports and trading partners, and economic outlook.
Understanding these factors enables a deeper evaluation of Portugal’s economic trajectory and its global standing. Portugal’s relatively high GDP per capita, positive GDP growth rate, and dominance of the services sector indicate a healthy and growing economy. The country’s strong exports and positive economic outlook further contribute to its economic stability and potential.
As Portugal continues to navigate the global economic landscape, it is essential to monitor its economic performance and adapt to evolving trends. By capitalizing on its strengths and addressing potential challenges, Portugal can strive for continued economic progress and enhance its global competitiveness.