The Portuguese economy has maintained growth above the euro area average since 2022, with a reduction in unemployment and a significant decline in public debt as a share of Gross Domestic Product, according to OECD Economic Surveys: Portugal 2026. Higher disbursements from the Recovery and Resilience Funds in 2026, together with recent structural reforms, are expected to continue to support economic activity.
The Organisation for Economic Co-operation and Development nevertheless warns of the need to maintain primary surpluses, reorient public spending towards investment and strengthen vocational education and training, including the reskilling of older workers, in order to sustain growth, increase productivity and respond to the pressures of population ageing and climate change.
