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According to a provisional estimate released by Statistics Portugal (INE), Gross Domestic Product (GDP) expanded by 2.3% year-on-year in the first quarter of 2026.
This marks an improvement on the more modest growth rates recorded throughout 2025, signalling renewed momentum in the national economy.
The figures indicate that the latest expansion was supported primarily by a “positive contribution from domestic demand” with investment playing a particularly significant role.
This uptick suggests increased business confidence and capital expenditure, even as household consumption showed signs of moderation.
In contrast, external trade weighed on overall performance. The INE noted that net external demand made a more negative contribution to GDP, as imports of goods and services grew at a faster pace than exports.
This imbalance highlights ongoing pressures in Portugal’s trade dynamics, where stronger domestic activity is driving demand for imports.
Looking back over 2025, GDP growth followed a gradual upward trend before stabilising. The economy expanded by 1.6% year-on-year in the first quarter, followed by 1.7% in the second, 2.2% in the third, and 1.9% in the final quarter.
The latest figure of 2.3%, therefore, represents the strongest annual growth rate in over a year.
The INE’s chain-linked analysis reinforces the contrasting drivers within the economy.
The data, published at the end of April, represent an initial snapshot based on early indicators. A more detailed breakdown of national accounts is scheduled for release at the end of May, which will provide deeper insights into sectoral performance and underlying trends.
Importantly, the INE confirmed that the inclusion of new primary information, such as updated international trade statistics for the fourth quarter of 2025, has not led to revisions of previously published GDP growth rates.
Portugal’s Golden Visa residency-by-investment programme is another important factor in the country’s growth.
According to a recent report by the World Digital Foundation, the Golden Visa is responsible for over €9 billion in direct investment, contributing an overall economic boost of over €54 billion through job creation and business activity.
A Golden Visa can be obtained by investing in €500,000 in one or more eligible alternative investment funds.
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
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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