Portugal's economy explained: GDP data, market trends, business developments, inflation, real estate, and economic policy. Analysis of how economic trends affect daily life and expat finances.
Portugal's Labour Cost Index rose 5.4% year-on-year in Q2 2026, up from 5.3%, INE data show — well ahead of 3.0% inflation. Construction led at 6.7% and services accelerated to 5.8%, while industry and public administration cooled to 4.9%.
Fresh-produce exports fell 3.5% in value and 5.9% in volume in the first half of 2026, to EUR1.226 billion, as three winter storms — the 'Kristin effect' — cut harvests. The sector's trade deficit passed EUR300 million, nearly double 2024.
A new EU regulation on end-of-life vehicles takes effect on 13 August, tightening recycling rules and cracking down on the export of unroadworthy cars from mid-2031. For Portuguese drivers it should mean cheaper second-hand parts, at an estimated lifetime cost of under €70 a vehicle.
Portuguese emigration has held steady at about 70,000 departures a year for three years, the Observatorio da Emigracao reports, with Switzerland now the top destination after Brexit curbed arrivals to the UK. Portugal still has one of the world's highest emigrant shares.
The €335.2 million tax dispute over EDP's 2020 sale of six Douro dams to an Engie-led consortium is live again: €99.6m in IMT, €120.9m in stamp duty and €114.67m in corporate tax. Prosecutors forced the Tax Authority to collect, and interior councils are owed more than €3 million in property tax on
Roughly a quarter of Algarve hoteliers expected the 2026 season to fall short of 2025 on occupancy and length of stay, according to the Hotel Association of Portugal. Occupancy is still solid, but the cooling mood highlights the region's heavy dependence on British visitors — around 57% of non-resid
📋 In This Edition * Market Wrap: The EDP Family Lifts the PSI 0.7% * The Movers: Renewables and Builders Lead, BCP Slips * Business & Tech Focus: An Eclipse Tests the Grid, Banks Stay
