Portugal is a country in the south west of Europe, bordered by the Atlantic Ocean on the West and south, as well as Spain by the north and east. The country also includes the Atlantic archipelagos of the Azores and Madeira. The country gets its name from its largest city, Porto, which is called Portus Cale in Latin. What follows is a brief look at the economy of Portugal, both past and present.
Before Portugal was given its name, the region was a place of great importance. When it was a part of the Roman Empire, the economy of Hispania, particularly in the provinces of Lusitania and Gallaecia, was important, producing and exporting many of the Empire's goods. This prosperity lasted right through the Visigoth and Moorish rules, right up until 1139 when the area became the Kingdom of Portugal.
During what is sometimes called the 'age of discovery', Portugal grew quickly, fast becoming the first global power in the world. During the Renaissance, it became the most important economy in the world, as well as the largest. It introduced Africa and the Far East into the economic circle of Europe, initiating the global, cross-continental economy we enjoy today. When Portugal lost its biggest colony, Brazil, in 1822, however, Portugal's influence began to falter.
Nowadays, Portugal has somewhat less influence than it used to. It has enjoyed vast amounts of funding from the EU in attempts to stimulated economic growth through fiscal policies, but it has now found itself in a bottomless pit of sovereign debt, teetering on the edge of bankruptcy. Because of this, it has been forced to organise more fiscal stimulus form the EU and IMF, but in return it must implement strict austerity measures.
This means that not only will the growth of the country be stifled over the next few years, it will also have to cut back public spending. What this means to ordinary people is that, if they don't lose their jobs, they will certainly not see their wages go up in the next few years. This is clearly a bad time in the history of Portugal's economy. The idea is, however, that without these tough times, the very stability of the EU will be threatened.
Before Portugal was given its name, the region was a place of great importance. When it was a part of the Roman Empire, the economy of Hispania, particularly in the provinces of Lusitania and Gallaecia, was important, producing and exporting many of the Empire's goods. This prosperity lasted right through the Visigoth and Moorish rules, right up until 1139 when the area became the Kingdom of Portugal.
During what is sometimes called the 'age of discovery', Portugal grew quickly, fast becoming the first global power in the world. During the Renaissance, it became the most important economy in the world, as well as the largest. It introduced Africa and the Far East into the economic circle of Europe, initiating the global, cross-continental economy we enjoy today. When Portugal lost its biggest colony, Brazil, in 1822, however, Portugal's influence began to falter.
Nowadays, Portugal has somewhat less influence than it used to. It has enjoyed vast amounts of funding from the EU in attempts to stimulated economic growth through fiscal policies, but it has now found itself in a bottomless pit of sovereign debt, teetering on the edge of bankruptcy. Because of this, it has been forced to organise more fiscal stimulus form the EU and IMF, but in return it must implement strict austerity measures.
This means that not only will the growth of the country be stifled over the next few years, it will also have to cut back public spending. What this means to ordinary people is that, if they don't lose their jobs, they will certainly not see their wages go up in the next few years. This is clearly a bad time in the history of Portugal's economy. The idea is, however, that without these tough times, the very stability of the EU will be threatened.
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