Markets, Business & Tech Briefing — Wednesday, 1 April 2026
Today's briefing: Budget Assumptions Under Strain, Foreigners Bought 1 in 4 Homes, Bankinter Targets Top-Six Position, and 5 more.
📋 In This Edition
- Budget Assumptions Under Strain
- Foreigners Bought 1 in 4 Homes
- Bankinter Targets Top-Six Position
- Novo Banco Prepares for French Takeover
- Portugal Tops EU Environmental Subsidies to Business
- AI Boosts Productivity, Low Job Loss Fears
- Instagram Plus Launches
- ChatGPT Vulnerability Patched
MARKETS & ECONOMY
Inflation Accelerates to 2.7%. Portugal's annual inflation rate jumped to 2.7% in March from 2.1% in February, the highest level in seven months. Energy prices surged 5.8% year-over-year, driven by Middle East conflict disruptions. The Banco de Portugal had projected 2.8% inflation for the full year 2026.
Eurozone Inflation Rises to 2.5%. Eurozone inflation climbed to 2.5% in March from 2.1% in February, primarily due to energy price increases. The reading complicates the ECB's rate-cutting plans, with markets now expecting the central bank to pause or slow easing measures.
Euribor Posts Largest Three-Year Jump. The 12-month Euribor rate surged in its sharpest increase in three years, ending a two-year period of declines. Portuguese homeowners with variable-rate mortgages will see payments rise by approximately €13 per month on a €150,000 loan starting in April.
Budget Assumptions Under Strain. Finance Minister Miranda Sarmento warned that the government's 2026 budget assumptions are "under strain" due to the Iran conflict and Storm Kristin damage. Planned IRS tax cuts and pension bonuses will be "more difficult to execute," he acknowledged Monday.
Foreigners Bought 1 in 4 Homes. Foreign buyers accounted for 25% of all Portuguese property sales in 2025, with Brazilians leading the charge. The figures underscore continued international demand despite house price growth of 18.9% in Q4 2025.
House Prices Accelerated Through 2025. Portuguese property prices rose 18.9% year-over-year in the final quarter of 2025, marking continued acceleration in one of Europe's hottest housing markets. The combination of high prices and rising Euribor rates is narrowing affordability for first-time buyers.
BUSINESS & STARTUPS
Bankinter Targets Top-Six Position. Spanish bank Bankinter set a strategic goal to reach the top six in Portugal's banking sector by 2030. The announcement signals continued consolidation and foreign competition in Portugal's financial services market.
Novo Banco Prepares for French Takeover. French buyers are preparing to take control of Novo Banco, with new administrators, revised statutes, and a new auditor being readied ahead of the formal transition. The sale marks the conclusion of a decade-long saga involving Portugal's troubled lender.
TECHNOLOGY & DIGITAL
Portugal Tops EU Environmental Subsidies to Business. Portugal is the EU member state that most heavily favors businesses in environmental subsidies, according to new European Commission data. The finding raises questions about the distribution of green transition funding.
AI Boosts Productivity, Low Job Loss Fears. A new study shows artificial intelligence is increasing workplace productivity in Portugal, but fears of job displacement remain "residual." The findings contrast with broader European anxiety over AI's labor market impact.
Instagram Plus Launches. Meta introduced Instagram Plus, a paid subscription tier offering features including the ability to view others' stories in "secret" mode. The service represents Meta's continued push toward subscription revenue models.
ChatGPT Vulnerability Patched. A security vulnerability in OpenAI's ChatGPT that could have allowed theft of sensitive user data has been patched. The flaw highlights ongoing security challenges as AI tools become more widely adopted in business settings.