home
***
CD-ROM
|
disk
|
FTP
|
other
***
search
/
CNN Newsroom: Global View
/
CNN Newsroom: Global View.iso
/
eur
/
port
/
port.ec4
< prev
next >
Wrap
Text File
|
1994-05-02
|
3KB
|
69 lines
<text>
<title>
Portugal: World Trade Outlook
</title>
<article>
<hdr>
World Trade Outlook 1992: Portugal
High Growth Rate Creates U.S. Business Opportunities
</hdr>
<body>
<p>By Mary Beth Double
</p>
<p>Portugal's high economic growth rate and economic restructuring
are good news for U.S. exporters, creating unprecedented
business opportunities as Portugal adjusts to its European
Community (EC) membership. Although overall U.S. exports to
Portugal declined 14 percent during 1991, with significant
declines in shipments of aircraft and parts, corn, and arms and
munitions, most product sectors experienced increases.
</p>
<p>U.S. exports 1991--$792 million U.S. imports 1991--$697
million
</p>
<p> Continued economic growth and infrastructure developments
will provide outstanding opportunities for U.S. exporters in
the following sectors: telecommunications equipment, pollution
control equipment, construction and mining equipment, computers
and peripherals, medical equipment, process control
instruments, electric power systems, and food processing and
packaging equipment.
</p>
<p> Portugal, currently serving in the rotating, six-month EC
Presidency, boasts nearly full employment and one of the EC's
fastest growing economies, averaging a 4.3 percent increase in
GDP annually from 1986-91. Economic growth will average 2.7
percent during 1992-93, with government spending on social
programs and infrastructure projects fueling growth. However,
the Portuguese continue to grapple with an overheated economy,
12 percent inflation, an underdeveloped infrastructure, a
chronic trade deficit, and a significant fiscal deficit. To
date, monetary control measures instituted by the government
with commercial lending rates well above the inflation rate have
proven ineffective in controlling inflation. Wage restraints,
tighter fiscal policies, and speeding privatization of
state-held companies will help reduce the public debt and should
help curtail inflation during 1992. On balance, Portugal has
progressed well in confronting the challenges of the EC Single
Market. Additional EC structural assistance funding is virtually
guaranteed for some time to come, and continued inflows of
foreign investment are providing the base for a modern EC
market.
</p>
<p> Cumulative U.S. investment at year-end 1990 was $590 million,
with 12 U.S. subsidiaries among Portugal's 50 largest companies.
U.S. investors will find numerous opportunities and generous
investment incentives in this low labor-cost production center
of the European market.
</p>
<p> The Department of Commerce is planning a number of trade
promotion events in Portugal. For additional information,
contact the closest Commerce Department (ITA) district office or
the Portugal Desk Officer at (202) 482-4508.
</p>
<p>Source: International Trade Administration, Business America Magazine
</p>
</body>
</article>
</text>