Latest news and stories about economic risk in Portugal for expats and residents.
Portugal lives daily with contractual and economic risks that are anything but unexpected. They are embedded in how the market functions, in the way relationships are built between individuals and companies, and in the reality of real estate transactions, leases, construction contracts, and business partnerships. However, we insist on acting as if every default were a surprise.
This article from Coface provides an economic risk analysis of Portugal. Key takeaways include: * Economy: Portugal's GDP per capita is $27,834.8. The country is expected to have solid economic growth in 2025, driven by investment and domestic demand, despite a slowdown in tourism. * Strengths: Potential for renewable energy, above-average absorption of European funds, low labor costs, and a buoyant tourism industry. * Weaknesses: Underdeveloped manufacturing sector, cumbersome legal system, and widening infrastructure gap. * Trade: Portugal's main export partners are Spain, France, Germany, the United States, and the United Kingdom. Its main import partners are Spain, Germany, France, the Netherlands, and Italy. * Public Finances: Public finances improved in 2022 and 2023 but are expected to deteriorate slightly in 2025. * Political Instability: The current fragmented parliament may lead to political instability. * Payment & Collection practices: The article also details payment methods (cheques, bills of exchange, electronic transfers) and debt collection procedures, including amicable and legal proceedings. * Insolvency proceedings: Includes information on out-of-court, restructuring, and bankruptcy proceedings. * Similar Country Risk: Portugal has a similar country risk to Spain, Singapore, South Korea, Taiwan, Canada, Japan, Belgium, Netherlands, the United States, and Australia.
Europe could activate an anti-coercion mechanism that wasn't even put on the table during the dispute that ended this summer with the trade deal. Analysts warn the crisis could lead to a 'recession'.
