The Economy of Portugal
Manufacturing, Cars and Footwear
Portugal manufactures cars at Autoeuropa, along with textiles, footwear and machinery, competing on quality against cheaper Asian producers.
A surprising industrial base.
Autoeuropa
The Volkswagen plant near Lisbon is one of Portugal’s largest exporters.
Footwear
Portuguese shoe makers moved up-market to serve European brands.
Textiles
Firms turned to high-quality and technical textiles.
Challenge
Wages are low relative to Western Europe but higher than in Asia, so quality and speed are essential.
A fast turnaround
Portuguese factories can deliver small batches quickly to European retailers.
Assuming low wages guarantee competitiveness
Quality and flexibility matter.
Key takeaways
- Autoeuropa is a major exporter.
- Shoemakers moved up-market.
- Textiles upgraded.
- Quality and speed compete.
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