Portugal’s economy is showing renewed strength as growth gathered pace in the third quarter of the year.
According to preliminary figures from Statistics Portugal, GDP rose by 2.4% year-on-year, an acceleration from the 1.8% expansion recorded in the previous quarter.
Quarter-on-quarter, the economy grew by 0.8%, following 0.7% in the second quarter, underscoring a steady upward trajectory. This momentum has been driven largely by domestic demand, with private consumption strengthening as households increased spending.
Retail sales data offer further encouragement, with annual growth rising to 5% in September from 4.4% in August, contributing to a quarterly gain of 3%.
Inflation has moderated, supporting real household incomes, and the labour market remains resilient, with employment near historic highs and unemployment relatively low by recent standards.
Economic confidence has been buoyed not only by rising consumption but also by steady improvements in public finances. Portugal has made notable progress in reducing its debt-to-GDP ratio, a point of national focus since the sovereign-debt crisis.
Current forecasts suggest the ratio will continue to fall over the next two years, bringing it to its lowest level in well over a decade and reinforcing the country’s fiscal credibility within the eurozone.
Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said: “It’s no surprise to see Portugal’s GDP projections rise once again.
“According to Ernst & Young (EY), investor confidence in Portugal is at an all-time high, with 84% of entrepreneurs planning to expand or establish operations in Portugal.
“Combined with the fact Portugal is in the top 10 most attractive European foreign direct investment locations, increasing GDP growth is anticipated.”
One of the most popular foreign direct investment routes in Portugal has been its Golden Visa residency-by-investment programme.
By investing €500,000 in one or more eligible alternative investment funds, investors gain freedom of movement across the 29 EU Schengen region countries, the opportunity to include eligible family members in one application, and a pathway to dual citizenship and an EU passport after the qualifying residency period.
Notably, investors only need to spend seven days per year in Portugal to maintain Golden Visa residency status.
Portugal’s openness to trade and its sustained appeal as a tourism destination continue to play pivotal roles in its economic story. Exports remain a significant share of national output, and although global conditions have softened, the country’s services sector—tourism in particular—continues to support growth.
Meanwhile, controlled inflation and improving wage dynamics have added further stability, allowing households to navigate the current environment with greater confidence than in previous inflationary cycles.
The combination of robust domestic-demand-led expansion and improving structural fundamentals paints a favourable picture as Portugal heads into the winter season.
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
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
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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