Self sufficiency in industry seems to be the Portuguese goal and they are in the process of finalizing it.
Is the government Facist?
How far would their businesses be able to penetrate into Brazil and would that open further doors than military hardware in South America? Certainly Britain and most other European states couldn't and still can't fully supply their former markets.
Thanks for question and when we start getting deeper into the TL sometimes its important to take a moment a do s small recap of the current situation.
1920 Portuguese republic overthrown (iOTL was 1926)
1920s National Union creates the Estado Novo government. National Union is more than a party it is a movement with two guiding principles:
Integralism is an ideology according to which a nation is an organic unity. Integralism defends social differentiation and hierarchy with co-operation between social classes, transcending conflict between social and economic groups. It advocates trade unionism (or a guild system), corporatism, and organic political representation instead of ideological forms of representation.
Corporatism is the sociopolitical organization of a society by major interest groups, or
corporate groups, such as agricultural, business, ethnic, labor, military, patronage, or scientific affiliations, on the basis of common interests. The Italian Fascist Corporatism was rejected by Salazar in favor of a Catholic Corporatism which placed limitations on the rights of business, workers and state.
Government is a Triumvirate with the Prime Minister, Finance Minister and Defense Minister. Salazar was Prime Minister till 1936 when he was killed in assassination. Government is not fascist but it is not democratic. The country has democratic elections but the political situation and power structure guarantee the National Union control. Much more progressive that iOTL National Union. The removal of Salazar allowed for economic development and in turn better standard of living and stronger country.
Fyi: Many people have lumped Salazar, Franco and Mussolini even Hitler as Fascist and the Portuguese have argued that the Estado Novo was not fascist per say like the others but a nationalist populist party. So that is what we have a right wing dictatorship that is committed to industrializing and developing Portugal and its colonies into a single country known as The Portuguese Federation.
As for selling products into Brazil and rest of South America those are very good points. For the Portuguese industrial development made great strides during the war but was held back by lack of technology and knowhow as well as capital. With the war over the Portuguese are hampering to ramp up production for both domestic and export. Both will be happening in quick succession. You are right about the plight of the British industry and Britain as a whole following the war. Which country can ramp up production the fastest and produce the goods demanded by consumers and companies will go on to succeed. IOTL this was the Americans, and while the Portuguese will not be able to displace the Americans they will be in good shape to carve themselves a part of the market in South America both in consumer goods, industrial goods as well as military equipment.
Hope this helps, more to come