The Portugal Brief -- Daily Briefing, March 16, 2026

Economy Set to Slow in Q1 as Storm Damage and Oil Crisis Bite

The CIP/ISEG economic barometer projects Portugal's GDP growth at 1.8% to 2.2% for 2026, below the government's 2.3% target. Recent Atlantic storms, rising oil prices driven by Middle East instability, and cooling industrial output are the principal headwinds. The labour market and EU recovery funding remain stabilising forces.

Building Permits Surge 20% in 2025

Portugal issued 41,592 building permits in 2025, a 20.1% increase over 2024, according to AICCOPN data. Housing construction and rehabilitation permits rose 3.3% to 19,817. Lisbon led with 6,368 permits for new construction, up 26% year-on-year. The figures suggest the construction pipeline is finally responding to the country's chronic housing shortage.

Portuguese Airports Hit 4.4 Million Passengers in January

National airports handled 4.4 million passengers in January, a 4.0% increase year-on-year. Porto saw the strongest growth at 9.6%, while Lisbon handled 2.5 million passengers (up 3.4%). Faro was the only major airport to record a decline, down 2.5%. Spain remains the top origin country, with the UK in third place showing increases in both arrivals and departures.

Portuguese Exports Disrupted by Middle East Conflict

Companies including cookware manufacturer Silampos report hundreds of thousands of euros in goods stranded due to port disruptions across the Gulf. The Middle East accounts for about 10% of Silampos's exports, with a 500,000-euro order currently suspended. Rerouted shipping lanes around the Cape of Good Hope are adding weeks to transit times and driving up freight and insurance costs.

AIMA Delivers 20,000 Residence Cards Ahead of April Deadline

Portugal's immigration agency is pushing out approximately 20,000 renewed residence permits processed in the second half of 2025. Half have already been shipped, with the rest expected by mid-April. AIMA's Anjos store in Lisbon will open on Saturdays to facilitate collection. Brazilian visa applicants must submit in person starting 17 March.

Oscars Night: 'One Battle After Another' Wins Best Picture

Last night's 98th Academy Awards saw Paul Thomas Anderson's 'One Battle After Another' take Best Picture and Best Director, with six wins total. Michael B. Jordan won Best Actor for 'Sinners' and Jessie Buckley took Best Actress for 'Hamnet.' Portuguese audiences followed the ceremony live on SIC, with the broadcast beginning at midnight Lisbon time.

Outdated Azibo Reservoir Water Plan Revoked

The government has formally revoked the Azibo Reservoir Management Plan, which had been in place for over 30 years. The decision, published in the Official Gazette, cites the plan's obsolescence and failure to meet environmental objectives. A new management framework is expected to follow.

Funchal Creates Gender Equality Advisory Body

The Funchal City Council in Madeira has established a Municipal Council for Gender Equality and Non-Discrimination. The advisory body will help shape local policy on equality issues, marking Funchal as one of the first municipalities in the autonomous region to create such a structure.