Portugal’s economy has entered 2026 with renewed momentum, as new figures reveal a notable increase in growth during the opening months of the year.
A preliminary estimate from Statistics Portugal (INE) shows that Gross Domestic Product (GDP) rose by 2.3% year-on-year in the first quarter of 2026. The result marks a clear improvement compared with the steadier pace seen across much of 2025, pointing to a more confident start to the year for the Portuguese economy.
According to the INE, the latest growth was driven largely by a “positive contribution from domestic demand”, with investment emerging as one of the key forces behind the expansion.
Increased capital spending and stronger business activity appear to have supported the economy, despite indications that consumer spending growth has eased slightly.
Meanwhile, international trade continued to place pressure on overall performance. The INE reported that net external demand had a more negative effect on GDP, with imports of goods and services increasing more rapidly than exports. The figures underline how stronger internal demand is also contributing to rising import levels.
During 2025, Portugal’s economy showed a broadly upward trajectory before levelling out towards the end of the year. GDP growth reached 1.6% year-on-year in the first quarter, edged up to 1.7% in the second, climbed to 2.2% in the third, and settled at 1.9% in the final quarter.
The latest reading of 2.3% is therefore the highest annual growth rate recorded in more than twelve months.
The INE’s chain-linked analysis further highlights the differing contributions within the economy. Published at the end of April, the figures provide an early overview based on initial indicators, with a more comprehensive national accounts report due at the end of May.
That release is expected to offer additional detail on sector performance and broader economic trends.
The statistics office also confirmed that updated primary data, including revised international trade information for the fourth quarter of 2025, did not result in any changes to previously published GDP growth figures.
Portugal’s Golden Visa residency-by-investment programme is another important factor in the country’s growth.
According to a recent report by the World Digital Foundation, the Golden Visa is responsible for over €9 billion in direct investment, contributing an overall economic boost of over €54 billion through job creation and business activity.
A Golden Visa can be obtained by investing in €500,000 in one or more eligible alternative investment funds.
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.
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
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