This massive absorption of funds by the public sector was largely at the expense of private enterprises whose financing was often constrained by quantitative credit controls. The anti-Estado Novo MFA-led Carnation Revolution, a military coup in Lisbon on 25 April 1974, initially had a negative impact on the Portuguese economy and social structure. Imports rose by 12.5 percent, the most since 2010, while exports increased at a slower 10.1 percent, the biggest gain since 2011. [88][failed verification] When the global crisis disrupted the markets and the world economy, together with the US credit crunch and the European sovereign debt crisis, Portugal, with all of its structural problems—from the colossal public debt to the civil service's overcapacity—was one of the first and most affected economies to succumb. State-funded and supported construction projects such as those related to the Expo 98 World Fair in Lisbon, the 2004 European Football Championship, and a number of new motorways, proved to have little positive effect in fostering sustainable growth. The category "current transfers" nearly tripled its share of GDP between 1973 and 1990, from under 5 percent to 13.4 percent, reflecting the explosive growth of the social security system, both with respect to the number of persons covered and the upgrading of benefits. In 1341, the Canary Islands were officially discovered under the patronage of the Portuguese king, but in 1344 Castile disputed them, further propelling the development of the Portuguese navy.[23]. His study makes clear that nationalization was greater in the modern, large, and technically advanced industries than in the traditional ones such as textiles, apparel, and construction. The case of BPN, a bank that was nationalised by the government in November 2008 to avoid systemic risk,[82] was particularly serious due to its size, market share and the political implications—Portugal's president at the time Cavaco Silva, as well as some of his political allies, maintained personal and business relationships with the bank and its CEO, José Oliveira e Costa (a former junior minister in the government led by Cavaco Silva) and the latter was eventually charged and arrested for fraud and other crimes. The bulk of these transfers were "structural" funds that were used for infrastructure developments and professional training. The Estado Novo regime economic policy encouraged and created conditions for the formation of large and successful business conglomerates. Even though the nation attracted a rising level of capital from abroad (both direct investments and loans), official and private Portuguese investments in the "overseas territories" were greater still, causing the net outflow on the long-term capital account. The government was concerned about the strength of foreign investment in privatizations and wanted to reserve the right to veto some transactions. Prolonged military campaigns were required to retain and impose Portuguese control over the Africans in these territories in the late 19th century. The territory's mineral wealth made it an important strategic region during the early metal ages, and one of the first objectives of the Romans when invading the peninsula was to access the mines and other resources. Restoration began in 1978. Soon the Atlantic islands of Madeira (1420) and Azores (1427) were reached and began to be settled, producing wheat for export to Portugal. The VAT, whose normal rate was 17%, replaced all indirect taxes, such as the transactions tax, railroad tax, and tourism tax. Controversy over how Portugal should mark its role in the slave trade flared up last spring when President Marcelo Rebelo de Sousa paid a state visit to Senegal. The fish salting and canning in turn required the development of salt, shipbuilding, and ceramic industries, to facilitate the manufacture of amphorae and other containers that allowed the storage and transport of commodities such as oil, wine, cereals, and preserves. Guarding its trade from European and Asian competitors, Portugal dominated not only the trade between Asia and Europe, but also much of the trade between different regions of Asia, such as India, Indonesia, China, and Japan. The pre-revolutionary period was characterized by robust annual growth rates for GDP (6.9 percent), industrial production (9 percent), private consumption (6.5 percent), and gross fixed capital formation (7.8 percent).[4]. The Portuguese colonists adopted an economy based on the production of agricultural goods that were exported to Europe. In 1891, the Bolsa de Valores do Porto (Porto Stock Exchange) in Porto was founded. Public expenditure rose to unsustainable levels and the number of public servants, which had been on the rise since the 1974 Carnation Revolution, reached unprecedented proportions. [73] From 2002 to 2007, the unemployment rate increased by 65%; the number of unemployed citizens grew from 270,500 in 2002 to 448,600 in 2007. Notwithstanding the bad macroeconomic environment, modern non-traditional technology-based industries like aerospace, biotechnology and information technology, were developed in several locations across the country. 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