A republic since 1910, Portugal was ruled for many years by the dictator Oliveira Salazar (1932-1968) and his successor Marcelo Caetano. In a coup on 25 April 1974 (the Carnation Revolution), power was assumed first by the military and then by the Council of the Revolution formed by progressive army officers.
In 1974-75 Portugal granted independence to all its African colonies (Guinea-Bissau, Cabo Verde, Mozambique and Angola) and East Timor (incorporated into Indonesia).
Macao returned to China on 20 December 1999. Democracy came to the country under the government of the socialist Prime Minister Mario Soares, winner of the 1976 elections. Since then, centre-right governments led by the Social Democratic Party (PSD) and centre-left governments led by the Socialist Party (PS) have alternated in power.
The Constitution of 2 April 1976 has been amended several times, especially in 1982 (ending military control of politics and reducing the President’s powers), and in 1989 (removing economic and corporative restrictions dating from the Salazar era). The President of the Republic, elected by direct suffrage for a five-year term, appoints the Prime Minister taking into consideration the results of the elections. The government must be voted in by the Assembly of the Republic (230 deputies elected for four-year terms using a system of proportional representation).

Defence.
In addition to the armed forces there are the paramilitary National Republican Guard (gendarmerie), the Public Security Police and the Border Guard.
There is an American airbase at Lajes in the Azores.

Justice.
The legal system is based on continental European law.

Population by age and gender (% - 2020)
	75+ 60-74 45-59 30-44 15-29 0-14
MALE	AGE	FEMALE

In 2020, the migratory balance was positive for the fourth consecutive year. The government confirmed its approach aimed at reception even during the health emergency, equating the rights of asylum seekers with those of residents. The share of elderly people continues to increase: the country is third within the EU for the highest median age.

Economic situation.
The Portuguese economy, deeply hit by the pandemic in 2020, shrank by 7.6%. Recovery is expected in 2021 (+3.9%). According to the European Commission, the country will only return to pre-pandemic levels in mid-2022. The tourism sector continues to suffer, also affected in summer 2021 by a new wave caused by the Delta variant.

Primary sector
Agriculture and livestock.
The main crop is the grape vine, especially in the Douro Valley. Port, the aromatic wines of Colares and Madeira, the muscats of Setúbal and Vinho Verde are world-famous. Olives and fruits (apples, pears and citrus fruits) are widely grown. Livestock farming (sheep and pigs), practised especially in the north, is also important.
Forests.
Portugal is one of the biggest producers of cork in the world. Cork trees thrive in the Tagus Valley and along the Alentejo coast.
Fishing.
The most abundant catch is sardines, which are exported preserved in oil. Quality fish caught include tuna, anchovies (Olhão fillets) and oysters (from the Tagus and Sado estuaries). The main fishing ports are Setúbal, Peniche, Figueira da Foz, Aveiro, Leixões and Nazaré.

Secondary sector
Minerals.
The main mineral resources are pyrites, which are mined in the Serra da Caveira, lithium (the country aims to become the first European supplier), and tungsten. A consortium participated by national and foreign companies launched the first offshore explorations following the discovery of possible oil fields off the north-west coast.
Energy and industry.
The country is reliant on imported energy, in particular on petroleum and gas, which it purchases primarily from Angola, Saudi Arabia, Nigeria and Algeria (through the MEG pipeline, which arrives in Spain and then reaches the country).
In Sines there are a regasification terminal and a refinery (another refinery is active in Porto). Most electricity is still generated by coal and gas-fired thermal power stations, though renewable sources are developing rapidly, with considerable investments in hydro-electric and solar energy. A large solar power plant is operational at Serpa, in the south-east of the country, with an installed capacity of 11 MW. A connection with the Moroccan electricity transmission grid is being planned. The country aims to overhaul the industrial sector with investments in technology and the launch of 5G frequency.
In the area between Lisbon and Setúbal there are a number of chemical plants that produce fertilizers and synthetic fibres. The mechanical engineering industry is present with factories assembling cars and commercial vehicles; to the south of Lisbon (at Palmela) there is a large car factory (Volkswagen). The textile and agribusiness industries are important and rooted in tradition.

Tertiary sector
Foreign trade.
Exports are In 2020, both exports and imports fell. The trade deficit therefore narrowed slightly compared to 2019.

Main exports
(M US$ - 2017) 
electrical and electronic equipment 5 607, vehicles and parts thereof 4 492, machinery 3 926, petroleum products 3 825, apparel and accessories 3 568, plastics 3 325, iron and steel 3 252, cars 2 405, footwear 2 271, furniture and accessories 2 180, paper 2 087, chemicals 1 175, 
pharmaceuticals 1 136, cork 1 113, tyres 1 110, optical and electro-
medical appliances 1 080, fruit and vegetables 1 057, fish 928, 
wine 879, animal & vegetable fats and oils 849, ceramic products 806

Finance and banking.
The central bank is the state-owned Caixa Geral de Depósitos. The Stock Exchange in Lisbon belongs to the Euronext group which has other stock exchanges in Amsterdam, Paris, Rome and Brussels.

Tourism. Tourism is the top economic sector, but it has been struck hard by the measures to contain the pandemic and restrictions on international travel, although the government intends to restart overseas connections. The main destinations are Lisbon, Porto, Coimbra, the Algarve, and the Azores and Madeira islands.

Education, culture & research.
Education is compulsory from 6 to 18 years of age.

Social security and health.
The state social security system provides old-age, ex-servicemen and disability pensions, and unemployment, family, maternity and sickness benefit. The state guarantees a minimum wage.