Markets, Business & Tech Briefing -- Tuesday, 24 March 2026

EUR/USD at 1.159 as Euro Holds Strong

The euro is trading at approximately 1.159 against the US dollar as of this morning, maintaining strength amid continued European Central Bank rate stability. The ECB has held its main refinancing rate steady, with markets pricing in no immediate changes. The stronger euro benefits Portuguese consumers importing goods but weighs on export competitiveness.

European Markets Eye Mixed Open After US Rally

European indices are expected to open cautiously this morning following a strong session on Wall Street. The focus for Portuguese equities remains on the PSI-20's record-breaking streak. Last week, three Portuguese blue chips -- Galp Energia, Jeronimo Martins, and EDP -- each surpassed one billion euros in annual net profit for the first time, marking a milestone for Lisbon's benchmark index.

Fitch: Portuguese House Prices to Rise Another 15% in 2026

Global ratings agency Fitch has forecast a further 15% increase in Portuguese house prices this year, following an already record-breaking 18% surge in 2025. According to Fitch's Senior Director Juan Garcia, the imbalance between limited supply and strong domestic and international demand shows no sign of reversing. The Bank of Portugal's strict mortgage lending rules and the shift toward fixed and mixed interest rates provide some protection against a credit-driven bubble, but affordability continues to deteriorate as wages lag far behind property prices.

INE Confirms Record 17.6% House Price Index Jump in 2025

Portugal's national statistics institute INE confirmed that the house price index rose 17.6% in 2025, up 8.5 percentage points from 2024. The data reinforces the Fitch forecast and paints a challenging picture for first-time buyers. Housing transactions reached a record 41.2 billion euros last year, even as foreign buyer participation declined.

Government Promotes Portugal as AI and Deep Tech Investment Destination

A government delegation recently visited leading international incubators and accelerators to study best practices in AI and deep tech startup development. The mission aimed to position Portugal as a competitive destination for international technology investment, building on the country's existing strengths in the startup ecosystem. Porto leads the country in patent submissions, with the University of Porto at the forefront of research output.

Portugal's Digital Nomad Visa Ranked Among Europe's Best for 2026

Portugal's D8 digital nomad visa continues to be rated as one of the most practical options in Europe for remote workers. The visa allows non-EU nationals to live and work in Portugal while earning income from abroad. Portugal's combination of affordable living costs relative to Western Europe, reliable internet infrastructure, and established nomad communities in Lisbon, Porto, and the Algarve continues to attract remote workers, though rising housing costs are increasingly cited as a drawback.

Public Sector Strike Disrupts Government Services

Monday's 80% public sector strike participation affected not only schools and hospitals but also business-facing government agencies including the Institute of Registries and Notaries (IRN), the court administration directorate (DGAJ), and the immigration agency AIMA. Businesses and individuals with pending registrations, notarisations, or immigration appointments may experience residual backlogs this week.

Coastal Infrastructure Spending Ahead of Beach Season

The government's 4.5-million-euro investment in Caminha's coastal defences signals continued public spending on infrastructure ahead of the 2026 tourism season. Portugal's Atlantic coast faces growing erosion pressures, and maintaining beach infrastructure is critical for the tourism sector, which accounts for roughly 15% of GDP.

Bank of Portugal Governor Calls for More "Preventive" Economic Policy

The Governor of the Bank of Portugal has called for the country to adopt a more "preventive and less reactive" approach to economic policy. Speaking last week, the governor emphasised the need for structural preparedness in the face of geopolitical uncertainty, energy price volatility, and the ongoing war in the Middle East. The comments come as Portugal's banking sector reports record profitability but faces questions about how that strength translates into broader economic resilience.