Portugal distinguished by The Economist as "Economy of the Year"

Portugal was distinguished by the British magazine The Economist as the "Economy of the Year" in 2025, heading the annual ranking that assesses the economic performance of the 36 wealthiest countries in the world.

The choice comes from analysing five fundamental indicators — inflation, inflation deviation, Gross Domestic Product (GDP), employment and stock exchange performance – where Portugal stood out by combining solid economic growth, low inflation, and a bull market.

According to the publication, "in 2025, Portugal was able to combine strong GDP growth, low inflation, and a bull market". Among the factors driving this economic performance, The Economist notes tourism vibrancy and the growing attraction of foreign residents in a context of tax competitiveness.

In this year’s ranking, Portugal follows on from Spain, the 2024 winner, who is now in fourth place. Ireland and Israel are second and third, respectively. On the other extreme, we find Estonia, Finland, and Slovakia as among the most penalised under the set of assessed indicators.

In a post on X, the Prime Minister Luís Montenegro, stresses that this distinction "is a fair acclamation of the Portuguese people’s merit and work" and strengthens "the Government’s motivation in following the path that led us here in the last few months".

The Prime Minister also added that "by reforming with courage and making the country more competitive we will continue to create jobs, increase wages, and strengthen the social state".

The Government’s forecasts indicate the Portuguese economy’s growth of 2% in 2025 and 2.3% in 2026.