Porto - Economy

Economy

Porto has always rivaled Lisbon in economic power. As the most important city in the heavily industrialised northwest, many of the largest Portuguese corporations from diverse economic sectors, like Altri, Ambar, Amorim, Bial, Cerealis, BPI, CIN, EFACEC, Frulact, Lactogal, Millennium bcp, Porto Editora, Grupo RAR, Sonae, Sonae Indústria, and Unicer, are headquartered in the Greater Metropolitan Area of Porto, most notably, in the core municipalities of Maia, Matosinhos, Porto, and Vila Nova de Gaia.

The country's biggest exporter (Petrogal) has one of its two refineries near the city, in Leça da Palmeira (13 km) and the second biggest (Qimonda, now bankrupt) has its only factory also near the city in Mindelo (26 km).

The city's former stock exchange (Bolsa do Porto) was transformed into the largest derivatives exchange of Portugal, and merged with Lisbon Stock Exchange to create the Bolsa de Valores de Lisboa e Porto, which eventually merged with Euronext, together with Amsterdam, Brussels, LIFFE and Paris stock and futures exchanges. The building formerly hosting the stock exchange is currently one of the city's touristic attractions, the Salão Árabe (Arab Room in English) being its major highlight.

Porto hosts a popular Portuguese newspaper, Jornal de Notícias. The building where its offices are located (which has the same name as the newspaper) was up to recently one of the tallest in the city (it has been superseded by a number of modern buildings which have been built since the 1990s).

Porto Editora, one of the biggest Portuguese publishers, is also in Porto. Its dictionaries are among the most popular references used in the country, and the translations are very popular as well.

The economic relations between the city of Porto and the Upper Douro River have been documented since the Middle Ages. However, they were greatly deepened in the modern ages. Indeed, sumach, dry fruits and nuts and the Douro olive oils sustained prosperous exchanges between the region and Porto. From the riverside quays at the river mouth, these products were exported to other markets of the Old and New World. But the greatest lever to interregional trade relations resulted from the commercial dynamics of the Port wine (Vinho do Porto) agro industry. It decidedly bolstered the complementary relationship between the large coastal urban centre, endowed with open doors to the sea, and a region with significant agricultural potential, especially in terms of the production of extremely high quality fortified wines, today known by the world-famous label Port. The development of Porto was also closely connected with the left margin of River Douro in Vila Nova de Gaia, where is located the amphitheatre-shaped slope with the Port wine cellars.

In a study concerning competitiveness of the 18 Portuguese district capitals, Porto was the worst-ranked. The study was made by Minho University economics researchers and was published in Público newspaper on 30 September 2006. The best-ranked cities in the study were Évora, Lisbon and Coimbra. Nevertheless, the validity of this study was questioned by some Porto's notable figures (such as local politicians and businesspersons) who argued that the city proper does not function independently but in conurbation with other municipalities. A new ranking, published in the newspaper Expresso (Portuguese Newspaper) in 2007 which can be translated to "The Best Cities to Live in Portugal" ranked Porto in third place (tied with Évora) below Guimarães and Lisbon. The two studies are not directly comparable as they use different dependent measures.