This post was most recently updated on January 6th, 2023
Portugal is a highly developed European country. Portugal has a high per capita gross development and gross national product. The level of industrialization is sustainably growing every year. Portugal has a Human Development Index of 0.864. Portugal is a wealthy country.
Let’s find out how Portugal is considered a developed country.
Sounds like fun? Let’s do it.
Per Capita Gross Domestic Product (GDP)
Gross Domestic Product is a measure of the market value of goods produced and services provided in a country during a specific period of time. Per capita income is national income divided by population size.
Per Capita Gross Domestic Product (GDP) is a metric that breaks down a country’s economic output per person and is calculated by dividing the country’s GDP by its population.
For example, let’s say one country’s GDP is 20 Billion USD, and it has a population of 1,000,000 (One Million).
The GDP per capita of that country would be 20,000 USD.
Here is how:
For a country to be considered developed, its GPD per capita has to be at least $12,000(USD). Some economists believe that the per capita GDP has to be $20,000 (USD) to have a more realistic measurement threshold.
According to International Monetary Fund, the per capita GDP of Portugal in 2022 was 24,496 USD. It is expected to reach 31,767 by the end of 2027.
The Per Capita Gross Domestic Product (GDP) of Portugal is above the measurement threshold. Hence, as per Per Capita GDP, Portugal can be considered a developed country.
Gross National Income/Product (GNI/GNP)
Gross National Income is the GDP plus Money coming from Foreign Countries minus the Money going to Foreign Countries.
While GDP measures the market value of all final goods and services produced in a given country, GNI measures income generated by the country’s citizens, regardless of the income’s geographic location.
The GNI will be high when less money is going to other countries, and more money is coming from them.
According to Tradingeconomics, the Gross National Income of Portugal was 54,842.50 EURO Million in the first quarter of 2022.
Human Development Index (HDI)
Human Development Index is a statistical index that measures the key dimensions of human development. It’s a composite index of life expectancy, education, and per capita income indicators.
A country scores a higher HDI when the lifespan is higher, the education level is higher, and the gross national income GNI (PPP) per capita is higher.
HDI over 0.800 is the threshold for a very high development index. Portugal has an HDI of 0.864 which is very high.
Economy of Portugal
Portugal is a developed and high-income country. The Industrial achievements of Portugal during the last few decades have been significantly booming. The Global Competitiveness Report for 2019, published by the World Economic Forum, placed Portugal in the 34th position on the economic index.
Industries in Portugal
Presently, the major industries in Portugal include machinery, electrical and electronics industries, automotive and shipbuilding industries, injection molding, plastics and ceramics industries, textile, footwear and leather industries, oil refinery, petrochemistry and cement industries, beverages and food industries, and furniture, pulp, and paper, wood and cork industries.
Modern non-traditional technology-based industries like aerospace, biotechnology and information technology, have been developed in several locations across the country.
Businesses from outside the EU use Portugal as their entry point for investment into Europe. The business services sector is the fastest-growing sector of the economy in Portugal and had overtaken all other sectors.
Portugal’s central bank is the Banco de Portugal, which is an integral part of the European System of Central Banks. The largest Portuguese banks are Banco Comercial Português and the state-owned Caixa Geral de Depósitos.
Despite being relatively small and concentrated, Portugal’s banking system generally compares well with other European Union (EU) countries in terms of efficiency, profitability, and asset quality, with solvency also close to European levels.
Is Portugal financially stable now?
Tourism in Portugal
Tourism in Portugal serves millions of international and domestic tourists. Tourists visit to see cities, historic landmarks, enjoy beaches, and religious sites.
Portugal recorded a total of 4 million tourists in 2020, ranking 41st in the world in absolute terms.
Portugal generated around 10.52 billion US dollars in the tourism sector alone. This corresponds to 4.2 percent of its gross domestic product and approximately 22 percent of all international tourism receipts in Southern Europe.
The most popular destinations in Portugal for tourists are Lisbon, Porto, the Algarve, the Portuguese Riviera, Madeira, Sintra, Óbidos and Fátima.
Various international awards have been awarded to the Portugal tourism industry multiple times.
Agriculture in Portugal
Despite representing a small percentage of the economy, a considerable part of Portugal is dedicated to Agriculture.
Portuguese wine and olive oil are especially praised by nationals for their quality, thus external competition (even at much lower prices) has had little effect on consumer demand.
Portugal is a traditional wine grower and has exported its wines since the dawn of western civilization.
More recently, niche crops such as blueberry and raspberry have seen a great increase in production, mainly for export. Other exports include horticulture and floriculture products, beet sugar, sunflower oil, cork, and tobacco.
Forests are the major natural resource of Portugal, covering about 34% of the country. The most important forest resources are pine trees, cork oaks, holm oaks, and eucalyptus. Cork is a major production, with Portugal producing half of the world’s cork. Significant mining resources are lithium, tungsten, tin, and uranium.
World Heritage Sites in Portugal
As of 2022, there are 17 World Heritage Sites listed in Portugal, with a further 19 on the tentative list. The first four sites listed in Portugal were the Monastery of the Hieronymites and Tower of Belém in Lisbon, the Monastery of Batalha, the Convent of Christ in Tomar, and the town of Angra do Heroísmo, in 1983.
The most recent additions to the list were the Sanctuary of Bom Jesus do Monte in Braga and the Palace of Mafra with its hunting park in 2019.
Is Portugal a third-world country?
Portugal is not a third-world country. A third-world country would be an economically developing country with a low Human Development Index (HDI), a high unemployment rate, political instability, and widespread poverty. On the other hand, Portugal is a developed country with every required criterion.
As we already discussed every aspect of a developed country in this article, we can say without a doubt that Portugal is a rich, first-world, developed country.
Is Portugal a Schengen Country?
Yes, Portugal is a Schengen country. Portugal joined Schengen on 25th June 1991.
Schengen is a visa agreement between 26 European States to abolish border control at their mutual borders.
In simple terms, if you are in one of the countries in the Schengen area, you can travel to another country in the Schengen area with a common visa. No new visa is required. Portugal is a developed country.
Is Portugal a NATO member?
Yes, Portugal is a NATO member. Portugal has been a NATO member for a long time. It joined NATO on 24th August 1949. Its pioneering spirit and maritime heritage, combined with its geographical location, made it an appealing candidate for the North Atlantic Treaty in 1949.
NATO stands for North Atlantic Treaty Organization.
It is an international military alliance where 30 countries from North America and Europe have signed the treaty where 2 of the countries are from North America, and 28 of them are from Europe.
NATO was established on 4th April 1949, with only 12 founding nations. Now there are 30 countries that have signed the treaty.
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