Markets, Business & Tech Briefing -- 25 February 2026

PSI Edges Higher

Portugal's benchmark PSI index closed up 0.25% on Monday, tracking a broader European recovery driven by renewed confidence in the technology sector. Trading volumes remained moderate, with investors awaiting key earnings reports later this week.

EDP Reports Earnings Today

Energias de Portugal, the country's largest utility and one of the heaviest PSI constituents, is scheduled to release quarterly earnings before market open on Wednesday. Analysts expect earnings of $0.64 per share on revenue of approximately $3.9 billion. The results will be closely watched for commentary on storm damage impacts to the company's distribution network.

Economy Debt Ratio Falls to 277.9% of GDP

Portugal's total economy debt — combining public and private sectors — declined to 277.9% of GDP in 2025, continuing a multi-year deleveraging trend. However, household debt grew by €12.5 billion, driven largely by housing loans, reflecting the intense demand in the property market despite rising borrowing costs.

Housing Supply Down 13% Nationwide

Idealista data shows the stock of homes available for sale contracted 13% in Q4 2025 year-on-year. Porto and Bragança led the decline at -27%, while Faro dropped 25%. The contraction is expected to keep upward pressure on prices even as growth rates moderate from last year's 10%-plus pace.

Real Estate Market Expected to Stabilise

After two years of double-digit price growth, analysts expect Portuguese house prices to decelerate in 2026 but not reverse. The combination of shrinking supply, strong foreign demand, and limited new construction suggests a market that is stabilising at elevated levels rather than correcting. Mortgage rates remain a key variable.

Budget Deficit 'Almost Inevitable' — But Brussels Offers Cover

The Expresso newspaper reported that Portugal's return to a budget deficit is "almost inevitable" given the scale of storm reconstruction spending. However, the European Commission confirmed that most recovery expenditure will be excluded from the net expenditure benchmark used to assess fiscal compliance, effectively shielding the country from corrective procedures.

Startup Portugal Ecosystem Shows Global Ambition

A feature in The Portugal News highlighted the maturation of Portugal's startup ecosystem, noting that 2026 represents not just numerical growth but qualitative transformation. Portuguese startups are increasingly competing in international markets, with Lisbon maintaining its position as a European tech hub despite rising office costs and talent competition from other Southern European cities.

Venezuela Sanctions: Portugal Backs EU Diplomatic Move

Portugal's Foreign Ministry announced support for EU High Representative Kaja Kallas' proposal to lift sanctions on Venezuela's interim president Delcy Rodríguez, conditional on progress toward democratic transition and the release of political prisoners — including detained luso-Venezuelan citizens.

European Markets Rally on Tech Rebound

Broader European markets rallied on Monday, led by technology shares recovering from an AI-driven selloff. Consumer confidence data also improved, providing tailwinds for cyclical sectors. The positive sentiment supported peripheral European indices including Portugal's PSI.

BTL 2026 Tourism Fair Underway

Portugal's main tourism fair, BTL 2026, is running this week in Lisbon with a focus on post-storm recovery and regional resilience. The Leiria region is using the event to showcase reconstruction progress, while the Algarve and Azores are pushing summer season campaigns amid strong early booking indicators from northern European markets.