Portugal has been named “Economy of the Year” by The Economist, a notable endorsement from one of the world’s most respected business publications. The recognition comes as Portugal continues to outperform many of the world’s wealthiest nations across key economic measures—driven by growth, stability, and sustained international investment.
The Economist evaluated the performance of 36 of the world’s richest economies, using five core indicators: inflation, inflation volatility, GDP growth, employment, and unemployment. Portugal stood out for its ability to deliver strong growth while keeping inflation low—an increasingly rare combination in today’s global economy.
According to the magazine, “in 2025, Portugal managed to combine strong GDP growth, low inflation and a booming stock market.”
A Vote of Confidence in Portugal’s Economic Model
Reacting to the news, Prime Minister Luís Montenegro welcomed the recognition, saying:“It is with hope and confidence that we see Portugal receiving exceptional international recognition.”
The designation reflects more than a strong year—it signals international confidence in Portugal’s long-term economic direction. While tourism and job creation remain central pillars of growth, Portugal’s success is increasingly tied to broader structural strengths, including fiscal discipline, workforce participation, and investment-friendly policies.
The Role of Foreign Investment and New Residents
The analysis also highlights the positive impact of affluent foreign residents, many of whom have chosen to relocate to Portugal or invest in the country in recent years. Drawn by quality of life, political stability, and comparatively favorable tax conditions, these individuals have become an important part of Portugal’s economic story.
At the center of this trend is Portugal’s Golden Visa residency-by-investment program, which has attracted international families, entrepreneurs, and investors seeking a European base. While the program has evolved over time, its economic impact remains substantial.
According to a new report from the World Digital Foundation, the Golden Visa has contributed approximately €54 billion to Portugal’s wider economy—supporting real estate, business development, job creation, and regional revitalization.
Looking Ahead
Being named The Economist’s Economy of the Year places Portugal in rare company and reinforces its growing reputation as one of Europe’s most resilient and attractive economies. For investors, entrepreneurs, and families considering a move, the message is clear: Portugal’s momentum is real—and its future remains promising.
As global economic uncertainty continues, Portugal’s ability to balance growth, stability, and openness is increasingly setting it apart.
Jayme H. Simões is a communications strategist and longtime Portugal–U.S. consultant who has worked on tourism, relocation, and public affairs projects for more than two decades. He has spent extensive time living and working in Portugal and helps Americans understand the realities of moving abroad—beyond the glossy headlines. Through Let’s Move to Portugal Now, Jayme shares practical, experience-based insights on visas, housing, health care, cost of living, and daily life, with a focus on informed decision-making rather than hype.
Let’s Move to Portugal Now is an independent resource for Americans considering life in Portugal. We provide practical, experience-based information on visas, housing, health care, cost of living, and everyday life—focused on clarity, realism, and informed choices. This site is not affiliated with the Portuguese government and does not offer legal or immigration advice.
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