Portugal records strong economic growth in 2026

Portugal’s economy has begun 2026 on a stronger footing, with newly released data showing an acceleration in growth during the first months of the year.

Preliminary figures from Statistics Portugal (INE) indicate that Gross Domestic Product (GDP) increased by 2.3% year-on-year in the first quarter of 2026. The result represents a noticeable improvement on the more moderate pace recorded throughout much of 2025, signalling a more robust opening to the year for the Portuguese economy.

According to the INE, the latest expansion was primarily supported by a “positive contribution from domestic demand”, with investment playing a central role in driving growth.

Higher levels of capital investment and stronger business activity appear to have helped underpin economic performance, although growth in household consumption showed signs of easing slightly.

At the same time, external trade continued to weigh on overall results. The INE noted that net external demand made a more negative contribution to GDP, as imports of goods and services grew faster than exports. The figures highlight how strengthening domestic demand is also contributing to higher import activity.

Throughout 2025, Portugal’s economy generally maintained an upward trend before stabilising towards the end of the year. GDP growth stood at 1.6% year-on-year in the first quarter, rose marginally to 1.7% in the second quarter, increased to 2.2% in the third quarter, and moderated to 1.9% in the final quarter of the year.

The latest figure of 2.3% therefore represents the strongest annual growth rate recorded in over a year.

The INE’s chain-linked analysis also points to the varying contributions across different areas of the economy. Published at the end of April, the preliminary data offers an early assessment based on initial indicators, while a fuller national accounts report is scheduled for release at the end of May.

That report is expected to provide further insight into sector performance and wider economic developments.

The statistics office also confirmed that updated primary data, including revised international trade figures for the fourth quarter of 2025, did not lead to any revisions to previously published GDP growth estimates.

Portugal’s Golden Visa residency-by-investment programme also continues to contribute to the country’s economic expansion.

A recent report by the World Digital Foundation found that the Golden Visa programme has generated more than €9 billion in direct investment, creating an overall economic impact exceeding €54 billion through employment generation and wider business activity.

A Portuguese Golden Visa may be obtained through an investment of €500,000 in one or more eligible alternative investment funds.

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About Portugal Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

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