The 2025 public accounts surplus reached 0.7% of GDP, significantly higher than the government's initial 0.3% forecast. This result was driven by record-high social security contributions due to strong employment levels and a significant shortfall in public investment execution, which fell well below the ambitious targets set in the 2026 State Budget.
Budgetary 'brilliant performance' achieved with record social security contributions and deep cuts to planned investment
Thursday, 26 March 2026RSS
Context & Explainers
Joaquim Miranda Sarmento is Portugal’s Finance Minister who gave a hearing before the Budget, Finance and Public Administration Committee about fiscal measures affecting housing. His remarks matter to expats because finance ministry decisions — like exemptions and public guarantees for young homebuyers — influence the property market, taxes and programmes that can affect housing affordability.
Portugal recorded a budget surplus of 0.7% of Gross Domestic Product (Produto Interno Bruto or PIB) in 2023, a result the government describes as historic. This performance is notably stronger than the Eurozone average deficit of 3.6%, as well as deficits in France (5.5%), the UK (6.0%), and the United States (6.3%). The surplus helps the country reduce its public debt, though officials warn of future economic uncertainty.
AI Summary AvailablePortugal records historic 0.7% budget surplus for 2025Read the synthesized summary with context and explainers
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Other news coverage of this topic
- Sarmento's five warnings for the 2026 public accounts following a “historic result” in 20256:37am, 27 Mar 2026 • ECO
- The economy's ability to create jobs continues to lead the State to surpluses6:18am, 27 Mar 2026 • Público
- It is a good principle for governments to do everything possible to have a budget surplus12:32am, 27 Mar 2026 • Correio da Manhã
- The (dis)enchantment with public accounts12:30am, 27 Mar 2026 • Correio da Manhã
- Deficit: Government celebrates victory over Mário Centeno11:23pm, 26 Mar 2026 • Público
- Seven answers regarding the 2025 state surplus10:00pm, 26 Mar 2026 • Observador
