On a quarterly basis, GDP increased by 0.8%, following 0.7% growth in the second quarter, highlighting a consistent upward trend. This solid performance has been fuelled primarily by domestic demand, as household spending continues to strengthen.
Retail sales figures add to the positive picture, with annual growth climbing to 5.0% in September from 4.4% in August, resulting in a 3.0% quarterly rise.
Inflation has eased, helping to support real household incomes, while the labour market remains resilient, with employment levels close to record highs and unemployment relatively low by recent standards.
Confidence in the economy has also been lifted by continued improvements in public finances. Portugal has made significant headway in reducing its debt-to-GDP ratio, a key national objective since the sovereign debt crisis.
Current projections indicate the ratio will continue to decline over the next two years, reaching its lowest level in more than a decade and reinforcing Portugal’s fiscal standing within the eurozone.
Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said:
“It’s no surprise to see Portugal’s GDP projections rise once again.
“According to Ernst & Young, investor confidence in Portugal is at an all-time high, with 84% entrepreneurs planning to expand or establish operations in Portugal.
Credits: Supplied Image; Author: Client; Portugal’s GDP rose by 2.4% year-on-year, according to Statistics Portugal
“Combined with the fact Portugal is in the top 10 most attractive European foreign direct investment locations, increasing GDP growth is anticipated.”
One of the most sought-after foreign direct investment options in Portugal remains its Golden Visa residency-by-investment programme.
Through an investment of €500,000 in one or more qualifying alternative investment funds, investors gain the right to live, work, and travel freely across 29 EU Schengen Area countries.
The programme also allows for eligible family members to be included in a single application and offers a pathway to dual citizenship and an EU passport after meeting the required residency criteria.
Importantly, investors are only required to spend seven days per year in Portugal to maintain their Golden Visa residency.
Credits: Supplied Image; Author: Client; One of the most popular foreign direct investment routes in Portugal has been its Golden Visa programme
Portugal’s sustained openness to trade and its enduring global appeal as a tourism destination continue to underpin its economic strength. Exports remain a vital part of national output, and despite a softer global outlook, the services sector—particularly tourism—continues to contribute significantly to growth.
With controlled inflation, improving wages, and resilient domestic demand, Portugal’s economy appears well-positioned for continued expansion.
As the country moves into the winter months, the combination of steady structural progress and robust consumer confidence paints a positive outlook for the year ahead.
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The views expressed on this page are those of the author and not of The Portugal News.