Latest news and stories about economic outlook in Portugal for expats and residents.
The head of the Order of Certified Accountants argues that there is fiscal space for further income tax reductions this year, despite warnings from the Finance Minister regarding future budgetary constraints and potential adjustments to tax refunds.
War in Middle East will upend leaders' plans to talk about the bloc's economy and budget next week.
Recovery from the damage caused by the war could take several years, the president of the European Central Bank pointed out.
The situation at the Judiciary Police (PJ) makes the DN headline today: Political uncertainty leaves the PJ in its biggest leadership vacuum in 20 years. On February 21st, the former leader of the PJ, Luís Neves, was announced as Minister of Internal Administration. The Government has pushed back the date for appointing a new head, stating only that it will be 'soon'. In the recent history of the Judiciary Police, there has never been such a long period without a National Director. The main photo highlights the consequences of the conflict in the Middle East: How a 'small excursion' in Iran turned into an economic war. The ECB may raise interest rates as early as April. Also highlighted: Return Package: Government facilitates the expulsion of illegal immigrants. Download the complete electronic edition of the newspaper at the link below. This is also the day for Dinheiro Vivo, the DN's economy supplement: Read this Friday's DV, March 20th, here. And don't miss another issue of DN Sport: Read this Friday's DN Sport, March 20th, here. See the front page in detail.
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.
The article highlights Portugal's recent economic outlook, noting that Fitch Ratings has maintained Portugal's credit rating while improving its outlook to “positive.” It also covers Portugal's ongoing challenges and developments, including the impact of global events such as the war in Ukraine and regional geopolitical tensions. Additionally, the article mentions Portugal's participation in international financial markets and economic indicators, reflecting a cautiously optimistic economic trajectory amid external uncertainties.
The article discusses Portugal's political and economic landscape over the past decade, highlighting President Marcelo Rebelo de Sousa's tenure, which is concluding this Monday. It reflects on his leadership style, characterized by “affection,” and reviews key events and developments during his time in office. Additionally, the article covers Portugal's recent credit rating stability and outlook improvements by Fitch, as well as ongoing economic challenges such as rising fuel prices. Overall, it provides an overview of Portugal's political stability, economic status, and notable moments from the last ten years of President Marcelo's presidency.
The article reports that S&P has maintained Portugal's credit rating at 'A+' while upgrading its outlook from stable to positive. This change reflects the resilience of Portugal's economy and a reduction in its debt levels.
