InstagramThe Instagram logo - a square camera icon with rounded corners and a circular lens, representing Instagram social media platformLinkedInThe LinkedIn logo - stylized letters "in" in a professional blue color, representing LinkedIn professional networking platformYouTubeThe YouTube logo - a play button icon in a rounded rectangle, representing YouTube video platformTwitterThe Twitter/X logo - stylized letter "X" in a modern design, representing Twitter/X social media platform

WhatsAppThe WhatsApp logo - a chat bubble with a phone icon, representing WhatsApp messaging platformWhatsApp

Contacts

About Us

LogoPortugal Home - A logo for the Portugal Home website
Sell
Blog
Login
  1. Homepage

  2. Blog

  3. Portugal is the 2025 Economy of the Year

We are part of the Harland & Poston Group

Subscribe to our Newsletter

InstagramThe Instagram logo - a square camera icon with rounded corners and a circular lens, representing Instagram social media platformLinkedInThe LinkedIn logo - stylized letters "in" in a professional blue color, representing LinkedIn professional networking platformYouTubeThe YouTube logo - a play button icon in a rounded rectangle, representing YouTube video platformTwitterThe Twitter/X logo - stylized letter "X" in a modern design, representing Twitter/X social media platform

Property Listings

Lisbon

Algarve

Porto

Cascais

Silver Coast

All Properties

Our Services

Buying

Selling

Move to Portugal

Property Management

Visas

All Services

Corporate

About Us

Team

Careers

Blog

Contacts

Visas

D2 Visa

D7 Visa

Golden Visa

All Visas

InstagramThe Instagram logo - a square camera icon with rounded corners and a circular lens, representing Instagram social media platformLinkedInThe LinkedIn logo - stylized letters "in" in a professional blue color, representing LinkedIn professional networking platformYouTubeThe YouTube logo - a play button icon in a rounded rectangle, representing YouTube video platformTwitterThe Twitter/X logo - stylized letter "X" in a modern design, representing Twitter/X social media platform

© 2025 Portugal Homes. Trademarks and brands are the property of The Harland & Poston Group.

Privacy Policy
Terms of Service
Cookies

    Article

    Portugal is the 2025 Economy of the Year

    Article -> December 10, 2025

    Article

    News & Insights

    Portugal is the 2025 Economy of the Year
    Portugal Homes BrandA Portugal Homes brand logo
    Portugal Homes

    Get the best property advice.

    Portugal has once again achieved the international spotlight. According to , Portugal has officially been recognised as having the Economy of the Year, outperforming economic powerhouses across Europe and beyond. 

    For anyone considering relocation or investment, the message is clear: Portugal isn't a simple lifestyle destination anymore. It's an investment-driven country.

    Portugal Leads the World’s Advanced Economies

    For the first time, Portugal ranks number one among 36 mostly high-income countries, which is evaluated across five critical indicators:

    • Core Inflation;
       

    • Inflation Breadth;
       

    • GDP Growth;
       

  1. Employment Performance;
     

  2. Stock Market returns.
     

  3. Where others struggled, Portugal excelled. The country combined strong GDP growth, a low and stable inflation, and a stock market up more than 20% in 2025, something very few countries in Europe can match.

    The Economist emphasises a common trend: Southern Europe keeps winning. After Spain took the crown last year, and Greece in preceding years, Portugal now takes centre stage, following years of sustained reform, strong tourism flows, rising foreign investment, and growing international confidence.

    Portugal excelled across all categories, outperforming traditional economic leaders in both Europe and North America, including Germany and the United States.

    The Economist's 2025 Ranking is one of the strongest acknowledgements of what Portugal Homes has been saying for years: Portugal is one of the best countries for investment.

    What’s Driving Portugal’s Exceptional Performance?

    A Booming Tourism Sector

    Tourism is one of Portugal's major economic industries, and if you walk through Lisbon on any given evening and you can immediately sense it: hotels at full occupancy, new restaurants opening every month, and cultural districts buzzing year-round.

    What’s behind it?

    • Travellers are looking for safety, climate, culture, and value, and Portugal ticks all boxes.
       

    • Direct flights from the US, Middle East, and Asia have increased dramatically.
       

    • Hospitality investment is accelerating, especially in luxury and boutique segments.
       

    Tourism touches every part of the economy. It supports jobs, fuels the service sector, and keeps rental demand healthy which is why property investors pay close attention to Portugal’s visitor numbers.

    Read More:
    Portugal Wins 22 Accolades at the Europe Ceremony of the World Travel Awards

    An Influx of Wealthy International Residents

    Another major driver of Portugal’s success is the steady arrival of new residents.

    From entrepreneurs, digital nomads, professionals, families, and investors, thousands of expats settle every year in Portugal, building their life here.

    And their reasons go beyond the weather.

    People are choosing Portugal because it offers:

    • Safety and stability in an increasingly uncertain world;
       

    • Straightforward investment residency routes like the Golden Visa and D2 Visa;
       

    • A strong education and healthcare systems;
       

    • A lifestyle that balances work, family, and wellbeing.
       

    This inflow brings long-term spending power into the economy. International families rent or buy homes, enrol children in schools, hire local services, invest in business ventures, and contribute daily to Portugal’s economy.

    These decisions compound over time. One investor becomes ten. Ten become entire communities. That consistent demand is one of the reasons Portugal has outperformed stronger, larger economies this year.

    Read More:
    Lisbon: The Perfect City for Entrepreneurs

    GDP Growth Above the European Average

    According to The Economist, Portugal’s strong performance in 2025 is closely tied to its GDP growth. 

    The article directly quotes “Portugal tops the list this time. In 2025 it combined strong gdp growth, low inflation and a buoyant stock market.”

    The publication also highlights that Portugal is outperforming most of Europe, that “GDP growth is well above the European average.”

    This momentum is driven by two clear forces: tourism and low tax rates.

    In simple terms, Portugal is growing faster than its neighbours because demand for the country, both as a destination and a place to live, is increasing. That growth supports jobs, strengthens the property market, and reinforces Portugal’s reputation as a stable place to invest.

    Read More:
    Who Gets Tax Incentives with the New NHR 2.0

    A Top-Performing Stock Market

    Portugal’s stock market has risen more than 20% this year, an exceptional performance even by global standards.

    Local companies are in good health, profits are strong, and international investors are giving Portugal more attention than in previous years. 

    This level of market confidence tends to spill over into other investment sectors too, including real estate.

    And as The Economist notes, the country named “economy of the year” often sees its stock market continue climbing the following year. It’s a reminder that momentum tends to attract more momentum.

    Why This Matters for Property Investors and Relocating Families

    The Economist's recognition of Portugal as having the best-performing economy in 2025 is much more than just a headline. 

    It's a signal of trust, vouching for Portugal, that the country is more than just a a lifestyle destination, and is a place for trustworthy investments that net you solid returns.

    In a time where much larger economies are facing volatility, Portugal offers much-needed stability. For relocating families, this reduces risk and makes decision-making easier.

    The ranking also reinforces the fundamentals already visible on the ground: steady GDP growth, controlled inflation, rising capital inflows, and a property market supported by population growth and record tourism. 

    International families continue choosing Portugal for quality of life, safety, and predictable residency pathways, while investors look for diversification in stable, medium-growth markets.

    Portugal Homes: Guiding Investors Through a Growing Market

    As Portugal attracts more global attention, knowledgeable, on-the-ground support becomes essential. Portugal Homes specialises exclusively in helping international clients:

    • Navigate the Portuguese property market;
       

    • Secure long-term residency via the Portugal Golden Visa or D2 Visa;
       

    • Build investment strategies aligned with market performance;
       

    • Acquire and manage high-quality assets through end-to-end services.
       

    Our teams in Lisbon and the Algarve monitor macroeconomic shifts closely, ensuring clients make decisions based on evidence, not guesswork.

    Thinking of Investing or Relocating? Now is the time.

    Portugal is experiencing one of the strongest economic years in her modern history, and global recognition is accelerating interest from investors worldwide.

    If you’re considering a move or investment, 2026 may be the most strategic year to enter the market.

    Speak with Portugal Homes today and explore the opportunities available across Lisbon, Cascais, the Algarve, and beyond.

    Portugal Homes BrandA Portugal Homes brand logo
    Portugal Homes

    Get the best property advice.

    The Economist’s 2025 Ranking