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.
📋 In This Edition * Week in Review: Lisbon Adds 0.7% Despite a Soft Friday Finish * The Week's Movers: Utilities and Cork Set the Tone * Business & Tech Focus: The Volta
The Azores are channelling €65 million of PRR recovery money into 767 homes — 142 new builds, 480 renovations and 145 serviced plots — to keep families on the islands. The first 12 flats, in Ribeira Grande, use a rent-to-own model with rents from €394 to €495 and drew 201 applications.
Portugal's public funding for research and development passed €1 billion for the first time in 2025, the EU's third-largest increase. Yet R&D as a share of GDP fell versus 2024, and the country's research intensity remains stubbornly below the European average after a decade of catching up.
Portugal has overtaken Spain to become Europe's second-largest footwear manufacturer, and the 18th globally, exporting about 93% of output to some 174 countries. The average export price rose 2.5% to about $28.25 a pair, second only to Italy, even as sector growth slowed to 0.8% in 2025.
Portugal's Competition Authority has cleared Darty, which operates the Fnac brand, to acquire eleven Staples stores in cities including Lisbon, Cascais and Santarém, ruling competition would not be significantly harmed. Fnac already runs 53 mainland stores, and Staples Portugal booked €76 million in
The E-Lar programme has handed out €66 million and 52,940 vouchers worth up to €738 each to move Portuguese kitchens off gas. But €42.2 million went to middle-class households against €23.7 million for vulnerable families — exposing the tension between fighting energy poverty and decarbonising the w
Brussels has wired Portugal the ninth PRR instalment of €2.32 billion, lifting total drawdown to 78.67% of the €21.9 billion fund. But only 74.54% of milestones are met, and every remaining target must be cleared by 31 August to secure the last tranche before year-end.
