Portugal 's International Financial Crisis

1676 Words Sep 28th, 2014 7 Pages
In the most recent of the world’s financial crises everyone has had to find a way to live a little, or in some cases a lot, more frugally. In the case of Portugal who joined the EU in 1986 and adopted the Euro currency in 1999, frugal is no longer enough (European Commission). While they are attempting to squeeze their way into a highly competitive market with exportable products and an appealing labor market for investors, they must also battle the European financial crisis. Not only does the financial crisis have Portuguese consumers zipping up their wallets but it also elicits questions as to whether their government can issue more bonds without defaulting on their current obligations. Portugal currently finds itself having difficulty staying competitive in the world marketplace. While the Portuguese economy lost two of its top industries like textiles and footwear manufacturing to competition from inexpensive Chinese labor, slowing the country’s growth for over a decade, they still have a few leads in the market with reputable products and companies("The importance of," 2010). Portugal’s main pattern of trade is to and from other European Union countries (Trade Profile, 2012). 73% of all exports from Portugal end up in the EU, while 75% of imports also come from the EU (Trade Profile, 2012). According to the CIA World Factbook, Portugal’s main exports now consist of cork, wood, and paper. There are several examples of major Portuguese companies that produce…
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