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Portugal is a southern European country on the Iberian Peninsula, bordering Spain. Its location on the Atlantic Ocean has influenced many aspects of its culture: salt cod and grilled sardines are national dishes, the Algarve’s beaches are a major destination and much of the nation’s architecture dates to the 1500s–1800s when Portugal had a powerful maritime empire.
PESTLE ANALYSIS OF PORTUGAL
Portugal follows a parliamentary democracy.
Republic of Portugal’s governing body consists of Prime minister and cabinets which are nominated by the president.
The President of Portugal is Mr. Anibal Cavaco Silva and Prime minister Mr. Jose Socrates.
Legislative assembly has the total of 230 deputies out of which 121 is required to form a stable government and the assembly is responsible for legislative, political and fiscal policies.
The country has the long-term relations with EU and Africa for trading, political, military etc.
It increases relationship with Portuguese Speaking Countries Communities and Economic Community of African States (ECOWAS). For example, country interacts in Asia with SAARC and strategic collaborations with India and China.
The currency of Portugal is euro. According to the research done in 2016, the GDP growth of the country is 1.4%. The contribution made by different sectors in GDP is:
Agriculture – 2.4%
There is a lot of inequality in the distribution of income:
Inflation rate – 1.34%
The banking system is more stable, although there are still non-performing loans and corporate debt. Portugal uses tax and transfer payments to increase equality between high-income earners and the low-income earners in the country. The government tax policy ensures that the high-income earners face higher taxes in comparison to low-income earners which have enabled the low-income earners to be able to stimulate demand for goods and services in the country economy. Poverty status: 19.5% of the population are at risk of poverty after social transfers, meaning their disposable income was below their national at-risk-of-poverty threshold. The exchange rate is 1 Euro = 76.28 Indian rupees. The rate of unemployment is increasing rapidly.
Population estimated – 10,704, 924
The rate of population growth is (-1.3%)
at birth: 1.07 male(s)/female
total population: 0.95 male(s)/female (2011 est.)
Life expectancy at birth
total population: 81.1 years
male: 78.2 years
female: 83.9 years
Portugal is a fairly linguistically and religiously homogeneous country. The country has Roman based cultures, cave painting, Coimbra town, Diana Temple. National dress at festival and wedding, traditional garments are red and green stocking cap, black states mourning in villages.
Distribution of population by education level (in Portugal who do not have the degree in some cases is seen as inferior). In Portugal, there are many excellent products than those of foreign products but the Portuguese prefers the foreign made product, basically because of the mindset of people.
High-speed internet and broadband services availability. Huge advancement with navigations. The technological improvements are constant in Portugal and they seem to combine the latest skills set along with innovation and creativity to create a seamless and solid product and a brand. Scientific and technological research activities in Portugal are mainly conducted within a network of R&D units belonging to public universities and state-managed autonomous research institutions. The European Innovation Scoreboard 2011, placed Portugal-based innovation in the 15th position, with an impressive increase in innovation expenditure and output.
Business Tax System:
The tax system has various categories. For example, Corporation tax consist income or gains, costs or loss
Personal Income tax states tax returns and payment.
Contract system has temporary & non-temporary trail period.The minimum age for the contract is 16 and maximum age of retirement is 70.Other incentives are as per International Labor code (holidays, bonus etc).
Marketing & Advertisements:
The government does not tolerate ads that mock religion
NO sexual contents
Alcoholic beverages may not support the sports team
Air and water pollution are significant environmental problems, especially in Portugal’s urban centers. Industrial pollutants include nitrous oxide, sulfur dioxides, and carbon emissions. The nation’s water supply, especially in coastal areas, is threatened by pollutants from the oil and cellulose industries. Portugal has 37 cubic kilometers of renewable water, of which 53% is used to support farming and 40% is for industrial activity. In total, the nation’s cities produce an average of 2.6 million tons of solid waste. The nation’s wildlife and agricultural activities are threatened by erosion and desertification of the land. The principal environmental agencies in Portugal include the Ministry of Quality of Life and the Office of the Secretary of State for the Environment. Agency states Decree Laws. For instance, Municipal Noise Reduction Plan (MNRP) has noise limit such areas in housing occupancy, hospitals, schools, and religious buildings
BUSINESS OPPORTUNITIES IN PORTUGAL
Tourism and property sales are Portugal’s biggest industries. There is a high scope for starting a tourism company as well as property sales industries. Portugal has a shortage of workers in more specialized areas like medicine, nursing, and information technology. Therefore, there is more scope for people who specialize in these areas. Even Information technology sector has a great scope. New investors can give the economy a boost. Recovery EU Economy is the main opportunity for Portugal since they rely on exports.