Portugal: Show must go on

Since the end of the pandemic, Portugal has outperformed all its European peers in terms of GDP growth. From 2015 to 2024, Portugal recorded an average annual GDP growth rate of 2.1 % . In a challenging international context, the country should continue to rely on domestic support factors , while also managing to stand out on the external front. The successful exit from the adjustment program since 2014 fueled a significant improvement in ratings by the major rating agencies, reflecting the recovery of public finances. Looking ahead , we expect Portugal to remain among the best of the major Euro Area countries in terms of growth prospects for both 2025 and 2026. Form the political side, the parliamentary fragility , the country currently experiences , is unlikely to derail economic growth in our view. From July 2025 onwards, we produce our in-depth analyses for the EMEA region every Thursday through our Special Report series. We will continue to react to economic events with our other publications . The EMEA Macro Research Team