Some of Portugal’s pros & cons

My fellow columnist and podcaster, Carl Munson, often referred to himself as one of the Expat community’s great Pollyannas. Living, as he does, on Portugal’s glorious Silver Coast, it’s easy to see why. It’s fair to say that Carl now admits, having experienced some of the nuances of Portuguese living first hand, that a little of that initial rosy sheen has perhaps mellowed. But, at the same time, his appreciation of life in Portugal remains undimmed.

Unlike Carl, I’ve not made a permanent move. Instead, I’m one of those annoying ones who flits back and forth, having not nailed my colours to any particular mast. Frankly, perhaps selfishly, I think this brings me the best of both worlds. I was never one for commitment. Perhaps this attitude allows me the benefit of perspective and lets me take a step back to see what the country currently seems to excel at and, like all other countries, where it faces challenges.

In recent years, the country has made headlines for surprising achievements and sobering shortcomings. From record-setting community events and a rapid green-energy transition, to persistent inequality and concerns about corruption. Portugal presents a study in contrasts.

Strengths, quirks & world records

In July 2023, the island municipality of Madalena (in the Açores) staged the largest Portuguese folk dance ever recorded. 812 participants danced together in synchronised “Chamarrita,” earning a Guinness World Record.

In 1999, a crowd of 34,309 people assembled in Lisbon to form a human logo for the national bid to host the 2004 Euro football championships. This earned a world record for the “largest human logo.”

Going back to 2009, Portugal organised the largest picnic ever recorded. A staggering 22,232 people gathered in Lisbon’s Parque da Bela Vista for a massive picnic.

These kinds of records show a strength, not only in event organisation and mobilisation, but also in community identity and cultural pride.

Sustainability & clean energy

Perhaps Portugal’s most striking recent success comes in renewable energy and sustainability. In 2024, Portugal achieved a milestone. 71% of its electricity demand was met by renewable energy sources, the highest ever for the country. By 2025, renewables remained dominant. In October 2025, 75.2% of the electricity produced was from clean energy. Thanks to this transition, Portugal has emerged as one of Europe’s leaders in decarbonisation and clean-energy adoption.

Beyond energy, the push for green housing continues. Over 85,000 homes have been upgraded to become energy efficient.

Innovation and education

Portugal also made progress in economic competitiveness and innovation. In 2024, Portugal rose to 36th globally, overtaking some of its European peers. Within that ranking, Portugal’s strongest performances were in education, technological infrastructure, health & environment, scientific framework, business legislation and international trade.

Data suggest a nation that’s evolving. Portugal still lags in some of the traditional markers of European wealth, but it’s building strengths in human capital, creative output and adaptation to a knowledge-based, green economy.

Weaknesses & structural challenges

Despite successes, many Portuguese people still face economic hardship. Recent data show that 9.2% of workers in Portugal were at risk of poverty in 2024. More broadly, a sizable share of the population, about a fifth (or 2.1 million people) live in relative poverty or social exclusion. The official poverty line is very low (an annual income of about €7,600 in 2024, which amounts to roughly €635 per month). Under that threshold, many households struggle to meet basic needs.

Income inequality is also rising. Portugal’s Gini index (a common measure of income inequality where higher numbers mean greater inequality) reached 36.3 in 2022, above the European average. In short, while some segments of the population and the economy are thriving, many others struggle.

Trust & rule-of-law

Economic hardship is complicated. In 2024, the Transparency International index showed Portugal’s worst result ever. The drop was driven by perceived “abuse of public office for private gain,” weak enforcement of anti-corruption laws, nepotism and insufficient transparency regarding political financing. These findings imply structural fragilities even if parts of the economy are improving.

Development gaps and structural limitations

Despite competitiveness gains, Portugal still struggles in key economic and structural areas. Portugal’s GDP per capita remains lower than many European peers. In 2024, it was around 82% of the EU27 average. Labour productivity remains disappointing. On the innovation front, while the country does well in creative output and research, it scores poorly in infrastructure and market sophistication rankings.

A country in transition

Portugal today is a nation in the midst of a transformation with some striking modern successes, but also persistent old-world problems. On the plus side, it’s proving that even countries that aren’t among Europe’s richest can lead in sustainability, renewables and environmental ambitions. Its cultural identity and community cohesion remain strong, whether via mass folk dances or major participation events. With well-educated human capital, growing innovation and investment in competitiveness, there’s a strong foundation for future growth.

Yet, the disadvantages are real. Income inequality, poverty and social exclusion remain. Institutional weaknesses, especially corruption, rule-of-law concerns and limited state transparency risk undermining long-term trust and inward investment. Economic productivity and structural rigidity restrain Portugal’s ability to fully join the ranks of high-income, high-innovation European economies. Thus, Portugal stands at a crossroads. It could continue to build on its “green streak” and cultural strengths or risk being held back by systemic flaws.

What to watch

In 2024, Portugal hit a record 71% of its electricity produced from renewables. Its sustainability ranking improved, becoming the 16th globally. But the 2024 corruption perception triggered alarm, its worst score since monitoring began. Economic data suggest that some 9.2% of workers were at risk of poverty in 2024, meaning that widespread inequality remains stubborn.

Looking ahead. If Portugal can keep investing in renewables, strengthen its institutions and address inequality; it might turn its current “contradictions” into a model of a modern, sustainable and socially balanced nation. If not, the gaps may continue to widen.

As you can perhaps see, Portugal, like most other territories, is a country of contrasts. Whilst it’s a global frontrunner in green energy and sustainability, a proud custodian of cultural and community spirit, capable of large-scale collective achievements, it’s also up there where inequality, poverty and institutional weaknesses persist. Of course, it’s not alone. Far from it.

Portugal’s world-record achievements, from the largest folk dances to mass-participation events, reflect a buzz of civic engagement. Its transformation toward renewables and sustainability also signals a forward-looking ambition that many wealthier countries can only envy.

Just like all other countries, Portugal must grapple with some structural problems by raising living standards, reducing inequality, boosting productivity and strengthening institutional transparency. In many ways, the future of Portugal may depend less on spectacular records and more on the steady, sometimes unglamorous work of social and economic renewal.

For me, it was difficult to become another one of Portugal’s many visiting foreign-born Polyannas. Yes, the weather is great, the wine is affordable and the vibe is pretty awesome. But if you scratch beneath all that gloss, there are bogey men to be seen here, too.