Portugal Economy

Economic growth:

The economy recorded average annual growth of 1.2% in the decade to 2022. To read more about GDP growth in Portugal, go to our dedicated page.

Fiscal policy:

Portugal's fiscal deficit averaged 3.4% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 10.5% in the decade to 2022. For more information on Portugal's unemployment click here.

Inflation:

Inflation averaged 1.5% in the decade to 2022. Go to our Portugal inflation page for extra insight.

Monetary Policy:

Euro Area monetary policy rate ended 2022 at 2.50%, up from 0.75% a decade earlier. See our Portugal monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the euro weakened by 18.2% vs the U.S. dollar. For more info on the euro, click here.

Our Consensus is for the economy to have gained some steam in Q3, and available data supports this prediction. Lower inflation and healthier consumer sentiment in the quarter point to more upbeat private spending; retail sales rose from Q2 levels in July–August. Moreover, goods exports rose sharply month on month in July. That said, industrial output deteriorated further in July–August from Q2. In politics, Portugal’s minority government is facing its biggest test since snap elections in March: Its recently proposed 2025 budget will be submitted for an initial vote in late October, and its rejection could lead to a government collapse. The budget envisages a surplus of 0.3% of GDP, tax cuts for young people and firms and public-sector wage hikes; it already incorporates some concessions to the main opposition party on which the vote hinges, but its prospects remain uncertain.

Projections out to 2034.

48 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 26 expert analysts.

Want to get insight on the economic outlook for Portugal in the coming years? FocusEconomics collects projections out to 2034 on 48 economic indicators for Portugal from a panel of 26 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Portugal economy. To download a sample report on the Portugal's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.