Crop yields and animal productivity are well below the EC average because of low agricultural investment, minimal mechanization, little use of fertilizers, and the fragmented land-tenure system. The main crops grown in Portugal are cereals (wheat, barley, corn [maize], and rice), potatoes, grapes (for wine), olives, and tomatoes. Portugal is the world's largest exporter of tomato paste and a leading exporter of wines. These exports help offset the cost of imported wheat and meat.

Portugal remains the least developed nation in Western Europe. Although the Portuguese economy grew by 5.3 % annually from 1965 to 1980, the economic growth rate slowed to less than 1 % during the 1980s; in the time 1990-1999 the gross domestic product (GDP) grew at an annual average of 2.5 %. The GDP in 1999 was $114 billion. Agriculture, including forestry and fishing, engages 14 % of the working population and accounts for 4 % of the GDP. Chief crops and production figures for 2000 were vegetables such as tomatoes (2.3 million metric tons), fruit such as grapes and olives (1.4 million), root crops such as potatoes (1.3 million), and cereal grains such as maize and wheat (1.5 million). Portugal is one of the world’s leading producers of wine and olive oil. farm animal numbered 1.2 million cattle, 5.8 million sheep, 2.3 million pigs, and 35 million poultry.

Portugal is an upcoming capitalist economy with a per capita GDP two-thirds that of the four big West European economies. The nation qualified for the European Monetary Union (EMU) in 1998 and joined with 10 other European countries in launching the euro on 1 January 1999. The year 2000 was marked by moderation in growth, inflation, and unemployment. The nation continues to run a sizable trade deficit. The government is working to reform the tax system, to modernize capital plant, and to increase the nation's competitiveness in the increasingly integrated world markets. Growth is expected to fall off slightly in 2001. Improvement in the education area is critical to the long-run catch-up process.