The move highlights Portugal’s improving financial position and raises the possibility of a future rating upgrade if current trends continue.

According to credit-rating specialist Fitch, the outlook revision reflects expectations that Portugal’s public debt-to-GDP ratio will continue to decline steadily in the coming years.

The agency cited prudent fiscal management and relatively modest budget deficits compared with other countries holding similar credit ratings as key factors supporting this outlook.

Portugal has made significant progress in strengthening its public finances over the past decade.

The Economist named Portugal its ‘Economy of the Year’ for 2025, a testament to the country’s growing reputation on the world stage.

Aerial view over Porto in Portugal
Fitch Ratings has awarded Portugal another 'A' economic rating and upgraded the outlook to 'Positive'

Continued fiscal discipline, combined with economic growth and stable government policies, has helped reduce the country’s debt burden while maintaining investor confidence.

Fitch highlighted the resilience of the Portuguese economy. Economic growth is projected to reach around 2% in 2026, supported primarily by private consumption and investment.

Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said: “We’ve all long known the direction Portugal’s economy is going in, and this just confirms that.

“Recognition from major credit rating agencies like Fitch is always a positive signal to international markets and investors who will be looking to Portugal more than ever.

“When you combine this with the recent award of ‘Economy of the Year’ from The Economist, it’s fair to say things are looking good for Portugal as we move through 2026.”

For international investors, credit rating outlook upgrades carry significant weight. They can influence borrowing costs, investor sentiment, and overall confidence in a country’s economic environment.

To find out how to invest in Portugal, contact Portugal Pathways.

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About Portugal Pathways

‍‍Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal

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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.

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