Portugal closes 2025 ahead of EU average with strong GDP performance

Portugal rounded off 2025 as one of the European Union’s best-performing economies, according to the latest figures from Eurostat, the European Commission’s statistical office.

Preliminary data for the final quarter of the year shows Portuguese GDP rose by 0.8%, more than double the eurozone’s growth rate of 0.3% over the same period. Across the EU, the average quarter-on-quarter increase stood at 0.4%.

The country also outperformed the bloc on an annual basis. Portugal recorded year-on-year GDP growth of 1.9%, compared with the EU average of 1.4%.

Larger economies lagged behind, with Germany posting annual growth of just 0.4% and France at 1.1%.

Among member states where quarterly data was available, Lithuania led with growth of 1.7%. Portugal and Spain followed, both recording increases of 0.8%, while Ireland was the only country to see output decline, with a contraction of 0.6%.

Across the EU, year-on-year GDP rose in 14 countries and remained unchanged in one.

Portugal also maintained consistent momentum when compared with its 2024 performance, with quarterly growth ranging between 1.7% and 2.3% throughout 2025.

Statistics Portugal, the national statistics office, said: “Compared to the third quarter of 2025, GDP increased by 0.8% in volume, after a 0.7% increase in the previous quarter.

“In 2025, GDP grew by 1.9%, in volume, after increasing by 2.1% in 2024.

“Domestic demand presented a positive contribution to the annual growth of GDP in volume, higher than in the previous year, reflecting the acceleration in private consumption and investment.”

Paul Stannard, chairman and founder of Portugal Pathways, said: “This demonstrates the solid progression of Portugal’s economic foundations.

“Its GDP is increasing at a faster rate than many other EU nations and once again highlights just why it is becoming so popular for international investors.”

In recent years, Portugal’s economy has also benefited from the Golden Visa residency-by-investment programme. According to a report by the World Digital Foundation, the scheme has contributed €54 billion to the Portuguese economy since its launch in 2012.

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