Finance: Economy news in Portugal

ECB raises interest rates, with a new increase already on the horizon

Government denies overtourism and says value increase is necessary

The Minister of Economy denied today, in Lisbon, that Portugal has an excess of tourism, although he acknowledged that in some areas and periods this may occur, and argued that an increase is necessary to improve wages in the sector.

Government says RRP is an "achievement" but there is still work to be done

Castro Almeida defends the RRP as an “achievement for Portugal” but admits there is verification work pending. Almost 5 billion will still be disbursed in 2027.

Von der Leyen thanks Lagarde for strengthening the euro

The President of the European Commission and the leader of the Eurogroup reacted to the announcement of Christine Lagarde's early departure from the ECB, scheduled for February 2027.

Von der Leyen thanks Lagarde for having 'strengthened the sovereignty' of the EU and the euro

Von der Leyen highlights that, as president of the ECB, Lagarde 'championed the deepening of financial integration in Europe' and embodied internationally 'what any currency needs: trust and authority'.

📹 ECB keeps interest rates unchanged. Watch Lagarde's press conference

On the day marked by the announcement of Christine Lagarde's departure from the leadership of the European Central Bank (ECB) in February, the president of the single currency's monetary authority explains in a press conference the ECB Governing Council's decision to keep rates unchanged. Follow all the statements here.

ECB keeps interest rates at 2.5% but considered raising them at this meeting

The Eurozone monetary authority confirmed the decision, already expected by analysts, to keep the interest rate unchanged at 2.5%. However, a possible hike was on the table during this meeting.

Christine Lagarde to leave ECB presidency on 7 February

The president of the European Central Bank (ECB), Christine Lagarde, announced this Thursday that she will step down from her duties on 7 February 2027.

ECB expected to keep key interest rates unchanged and postpone hike until December

The ECB's decision will be revealed following the US Federal Reserve's announcement on Wednesday to maintain interest rates.

8pm Budget approved in general terms with abstention from the PS

The state budget has been approved in its general principles following an abstention from the Socialist Party (PS).

Food prices expected to rise 18% between 2025 and 2027

The World Bank also projected a 32% rise in energy prices this year and a slight decrease for the following year.

Santander restructuring penalises profit, but loans and deposits continue to soar

Santander Totta's profit fell 9% to 664 million euros, with branches being eliminated at a faster rate than in other regions. Even so, it remains the most profitable unit of the Spanish group.

Live coverage of the markets and the economy – 28 October

Daily live updates on financial markets and economic developments for October 28th.

Portugal ranked 21st in reputation among 30 countries: culture saves image, politics and economy penalise

Portugal's global reputation sits in 21st place out of 30 countries; while cultural appeal boosts its standing, the political and economic landscape negatively affect its overall score.

Executive Digest27 Oct

Fuel prices expected to remain high until the end of the year, says Galp

Galp forecast today that fuel prices are likely to stay high until the end of the year, taking into account factors such as refining availability in Europe.

Fuel prices expected to remain high until the end of the year, Galp indicates

Galp forecasted this Monday, 26 October, that fuel prices are expected to remain high until the end of the year, considering factors such as refining availability in Europe. Co-executive chairman João Diogo Marques da Silva stated that prices are determined by a combination of factors, including market volatility and geopolitical situations. Regarding electricity, Galp reiterated that prices for its customers will not change until the end of the year, but noted it is too early to predict trends for 2027. Additionally, the energy regulator ERSE has proposed a 1.5% increase for electricity in the regulated market for 2027.

Galp deal with Abu Dhabi fund falls through but remains open to new partnerships at the Sines refinery

The deal with Moeve has collapsed, but the intention to bring other investors into refining remains active. Galp has improved its earnings projections for this year. Company managers have downplayed the fall in share prices this Monday: €1.7 billion in market capitalization was lost in a single day.

Hedge funds challenge Portugal win in ICSID case over collapsed bank

Global Arbitration Review26 Oct

Unemployment in Portugal: Municipalities with the Highest and Lowest Rates

An analysis of the regions in Portugal with the highest and lowest levels of unemployment.

oRegiões25 Oct

Portuguese debt is viewed as a “safe-haven asset”, says Secretary of State for the Budget

The Deputy Secretary of State and for the Budget, José Maria Brandão de Brito, stated this Wednesday that Portuguese sovereign bonds are “seen as safe-haven assets”, which he attributes to a “stance of responsibility and calm in the financial management of the State”. The official was speaking during the parliamentary debate on the General State Account...

Seguro promulgates legislation amending the IRS code

The Government's proposal to lower the IRS in 2026 by reducing rates for the first six income brackets, between 0.3 and 0.5 percentage points, has been approved in Parliament.

Economy's external surplus falls to four billion by August

The Portuguese economy recorded an external surplus of 4.05 billion euros through August, down 26.8% compared to the same period last year, according to data released this Tuesday by the Banco de Portugal (BdP). Month-on-month, this is a 69% increase over the 2.397 billion euros accumulated through July, but the figure remains below that observed in the same months of 2025 (5.535 billion euros) and 2024 (8.26 billion euros). According to the BdP, this trend mainly reflected a 2.7 billion euro increase in the goods trade deficit (imports rose by 6 billion euros while exports rose by 3.3 billion euros). Additionally, there was a 259 million euro reduction in the secondary income balance surplus—largely due to Portugal's increased financial contribution to the European Union budget—as well as a 120 million euro decrease in the services balance. Meanwhile, the capital account surplus rose by 1.4 billion euros, explained mainly by the receipt of compensation paid by foreign reinsurers for damages caused by storms that hit Portugal at the beginning of the year, and by an increase in fund allocations classified as investment aid. The central bank notes that the Portuguese economy's financing capacity through August resulted in a positive financial account balance of 2.678 billion euros, compared to 1.072 billion euros in July and 6.194 billion euros a year earlier. The sectors contributing most to this positive balance were insurance companies and pension funds, through investment in debt securities issued by non-residents, and private individuals, through increased investment in units issued by non-resident investment funds and deposits abroad, the BdP noted. Non-financial corporations and the central bank saw the largest reductions in net assets due to growth in capital liabilities and divestment in debt securities issued by non-residents, respectively. In August alone, the Portuguese economy had an external surplus of approximately 1.7 billion euros, compared to 1.6 billion euros in the same month of 2025. According to the BdP, the variation reflects a 147 million euro increase in the capital account balance, a 26 million euro rise in the secondary income balance surplus, and a 61 million euro increase in the primary income balance deficit.

With TAP, Lufthansa now holds 36% of the market between Europe and Brazil

TAP's strength in connections between Europe and Brazil was the main attraction of the 49.9% privatization, in which Lufthansa beat the proposal from Air France-KLM. With the integration into the German group, the Portuguese airline will gain even more muscle on routes to the Latin American country. If we use as a reference...

Portugal was one of the countries that made the most revisions to the PRR

Portugal stands out among European nations for the high frequency of changes implemented in its Recovery and Resilience Plan (PRR).

Jornal de Negócios18 Oct

The 'chess game' that will reconfigure the ECB with Lagarde's departure

Reuters reported that an early exit could take place in the coming weeks. Lagarde wanted 'calm waters' for her departure but will likely have to leave amidst the turbulence surrounding her home country.

AI angst: Could the technology bubble burst – What would it mean for Portugal?

Essential Business17 Oct

How far will the PS go to keep the State on board at TAP

Carneiro avoids committing to a second phase of privatisation, but the party's new wording is less restrictive than before. The issue is causing internal resistance. Pedro Nuno Santos is against it.

IMF warns of growing risks despite the resilience of the global economy

The International Monetary Fund advocates for maintaining prudent macroeconomic policies and strengthening international cooperation.