Productivity and the salary policy that matters

Chinese make a fortune with business in Portugal. Fosun Group earns four times what it paid for Fidelidade

EU leaders begin to treat competitiveness as a crisis

Housing crisis threatens economic growth and drives young people away from urban centres, IMF warns

The director of the IMF's European Department warned that the housing crisis in Portugal and other European countries is affecting economic growth by pushing young people out of urban centres. Portugal recorded the second-highest rise in housing prices in the EU.

Giving life to the lives of those who seek us

Reflecting on a speech at the European Parliament, the author discusses the historical roots of European solidarity and the cooperative banking model. Drawing inspiration from Robert Schuman and Friedrich Raiffeisen, the text highlights the importance of cooperative institutions in fostering inclusive growth and local autonomy. The author, who leads a local cooperative bank, argues that such institutions are essential for supporting entrepreneurs and promoting economic competitiveness, especially in the age of AI, by maintaining a human connection with the community.

Silver bullet

The revision of labour legislation has become a tedious soap opera, despite recent episodes adding some drama: the suspense of the UGT vote or a party with less than 5.5% of the electorate accusing unions of representing only 7 to 15% of workers (and what about employer confederations, by the way?). Overall, the dramatisation surrounding the process is based on a misconception: that it is the 'silver bullet' that will solve economic growth problems. While some norms need updating, a conflict-driven approach fuels 'class struggle' rhetoric, which is the antithesis of social-democratic logic. Worse, it fosters illusions and loses sight of other, perhaps more priority, dimensions. Coincidentally, the OECD published the study 'Foundations for Growth and Competitiveness' this week. Portugal's gap compared to the OECD average in numeracy and problem-solving skills for people aged 16 to 65 is around 15% (25% for top-tier countries). If Portuguese workers had the skills of those in Finland, Japan, or Sweden, productivity could rise by 35%. Some OECD proposals involve labour law but outline concrete trade-offs (e.g., more permanent contracts to stimulate training investment, alongside simplified dismissal procedures). The difference between being involved and being committed is essential for credible negotiation. In reality, the conditions for such productivity gains are complex, involving everything from the productive structure to management process quality. Interestingly, a study from a few years ago suggested that if Portuguese companies adopted Swedish processes, the productivity gap would shrink by 25%. Revising labour law may make life easier for managers, but if they assume they are already doing everything right, it will achieve little and could even have perverse long-term effects. Crucially, we must not lose sight of the fact that the fundamental aspects of competitiveness policies remain unaddressed.

Members of Parliament highlight the importance of the Recovery and Resilience Plan but issue warnings to Brussels

The RRP aims to implement a set of reforms and investments with a view to recovering economic growth.

“A prime minister will never be a robot”: Nuno Torres discusses Artificial Intelligence in new book

AI innovations, which ensure economic growth, must lead to public policies for social inclusion.

Montenegro says Cavaco's article 'fit like a glove' for the Government's actions

The PSD veteran appealed to the need for reforms aimed at economic growth.

Cavaco Silva defends Government's "reformist action" and criticises PS and Chega

Former president Aníbal Cavaco Silva defended the “reformist action” of Luís Montenegro's government, criticising the “lack of courage” of the PS and the “lack of preparation” of Chega regarding structural reforms, without which Portugal will remain a “relatively poor” European country.

Portugal risks losing €15 billion due to digital delay

Pressure. The slow adoption of artificial intelligence is still limiting national growth and competitiveness. In more advanced countries, companies are more innovative, are increasing margins, and have already adapted their business models.

Lisbon at the Centre of Global Innovation

Home Business Lisbon at the Centre of Global Innovation Lisbon at the Centre of Global Innovation There are moments that quietly redefine how a country is perceived on the global stage. The decision to bring BIO-Europe Spring 2026 to Lisbon is one of those moments.

Fitch maintains Portugal's rating and improves outlook to 'positive'

The financial rating agency Fitch has maintained Portugal's debt rating at 'A', improving the outlook to positive, as announced today in a statement. Fitch indicated that the revision of the outlook reflects the agency's view that Portugal's public debt relative to GDP will continue to decline significantly over the forecast horizon (2026-2029), supported by prudent fiscal policy, with deficits remaining well below the median of peer groups. The agency still forecasts a deficit of 0.8% this year, noting that the deterioration mainly reflects expenses related to storms and reconstruction, a peak in expenses funded by the Recovery and Resilience Plan (PRR), and cuts in personal and corporate income taxes in the 2026 budget, alongside an increase in spending on salaries and pensions. Additionally, it noted that uncertainty regarding the scale of storm-related costs introduces an additional risk to the 2026 results. “We expect the deficit to decrease to 0.5% of GDP in 2027 as the temporary effects related to storms fade and PRR-funded expenses decrease,” it highlighted. Fitch also predicts that growth will slow to 1.8% in 2027 as PRR support diminishes. The agency estimates a budget surplus of around 0.4% of GDP in 2025. For Fitch, prudence in policies, budget performance “repeatedly exceeding expectations”, as well as “persistent current account surpluses have strengthened economic resilience and shock absorption capacity.” This is the third assessment of Portuguese sovereign debt this year. DBRS, in January, maintained Portugal's rating with a stable outlook, while S&P left the rating unchanged but improved the outlook from stable to positive.

Portugal approves 2026 budget with focus on housing ...

The article discusses Portugal's 2026 national budget, which totals €140.25 billion ($153.14 billion), representing a 4.5% increase from 2025. Approved by parliament in November 2025, the budget aims to promote economic growth, social welfare, and fiscal discipline, projecting a GDP growth of around 2.3% and a reduction in public debt to approximately 87.9% of GDP. Key priorities include significant investments in housing (€6.9bn), transport infrastructure, healthcare (€17.2bn), education (€7.5bn), and social protection (€28.5bn). The government emphasizes supporting households, especially low-income groups and the elderly, through tax reliefs, pension increases, and social benefits. Infrastructure projects focus on building and rehabilitating public housing, expanding transport networks, ports, and airports, and enhancing energy and environmental sectors. The budget also allocates funds for security and defense, reflecting rising geopolitical tensions. Tax reforms include raising income tax thresholds, lowering corporate tax rates, and offering property transfer exemptions for first-time buyers. Overall, the budget aims to sustain growth, reduce public debt, and improve citizens' well-being, with construction industry growth projected at 2.3% in 2026 driven by these investments.

worldconstructionnetwork.com26 Feb

Portugal tourism with record revenue

Home News Portugal tourism with record revenue Portugal tourism with record revenue Last year, spending by foreign tourists in Portugal grew by 5%, exceeding that of Portuguese tourists abroad, which increased by 4. 5% year-on-year.

Portugal's Tourism Sector Advocates as a 'Vehicle' for National Improvement

The revenue from national tourism has increased from 12.8 billion euros a decade ago to nearly 30 billion euros now.

Horta Osório: economic growth must be a 'cross-party and intergenerational' objective

António Horta Osório, vice‑president of Crédit Commercial de France and former CEO of Lloyds Bank, argued at a conference in Lisbon that accelerating economic growth should be a 'cross‑party and intergenerational' objective for the country. He also praised the reduction in public debt, saying it was carried out 'the right way'. 'There is no reason ...

Portuguese Business Confederation says EU–India trade agreement is relevant to the national economy

The Portuguese Business Confederation (CIP) considers the trade agreement between the European Union (EU) and India a significant step to reduce dependence on traditional partners and to strengthen Portugal’s presence in high‑growth economies.

When governing means throwing money at problems

The temptation of subsidies, the touristification of the economy and the lack of a strategy for growth.

Prime Minister says Portugal is gaining ground as a leading European investment hub

Home Portugal Visas Prime Minister says Portugal is gaining ground as a leading European investment hub Prime Minister says Portugal is gaining ground as a leading European investment hub Portugal is attracting growing international interest, with Prime Minister Luís Montenegro saying the country

Microsoft CEO urges redistribution of AI benefits

Microsoft's CEO believes AI will shift the productivity curve and have a positive impact on global economic growth, provided it stops being a 'pastime' and becomes an economic foundation.

Entrepreneurial courage is critical for European growth

The continent’s public-sector leaders have begun laying the foundation for renewed economic growth. Europe’s boldest companies have the opportunity to supercharge it.

CIP welcomes EU–Mercosur agreement that brings 'great prospects for economic growth'

The Confederation of Portuguese Business says the agreement is “good news for companies”, offering “great prospects for economic growth on both sides of the Atlantic”.

Algarve economy grows above national average

Home News Algarve economy grows above national average Algarve economy grows above national average The Algarve region's economy grew by 2. 3% in 2024, a figure above the national average of 2. 1%, and increased its contribution to the national Gross Domestic Product from 4.

Algarve expects an economic impact of at least €150 million for each year of Formula 1

Chosen to host Formula 1 Grand Prix events in 2027 and 2028, the Algarve tourism region recalls that in 2020, the Portimão racetrack generated €100 million from the event, despite dealing with COVID-19 restrictions that allowed only a third of spectators.

PSI with "exceptional performance" surpasses global indices in 2025 - XTB

The Portuguese stock market rose by 27.4% in 2025, outperforming benchmark indices such as the US S&P 500 and the German DAX, with notable performances from BCP, Mota-Engil, and Jerónimo Martins, according to an analysis by X.

Madeira's Budget and Investment Plan Approved

The leader of the executive highlighted that the approvals confirm and reinforce the region's “growth path” and that the strategy for this is based on balancing public accounts and reducing taxes.

Maria Luís Albuquerque claims that banking is "central to Europe's competitiveness" but "frictions need to be eliminated"

Maria Luís Albuquerque wants European rules to deliver results where it matters most: “supporting citizens, strengthening businesses, and boosting growth”. The banking sector is “central”, is “robust”, but needs to achieve greater scale, argues the European Commissioner.