“There’s no cause for alarm about the small dip that occurred in the second half, as exports to Europe grew significantly. However, there was a notable decline in exports to the United States, and we know well why,” stated the minister, referring to the tariffs imposed by the US.
The official was speaking in the Assembly of the Republic during the general debate on the State Budget proposal for 2026, responding to several questions from deputies.
Castro Almeida reminded that the US is Portugal’s fifth-largest importer “and, therefore, an 8.1% decrease from the American side has a significant impact on our economy.”
“But, in general, international trade proceeded under normal terms. There is no structural problem with our exports,” he added.
In his initial remarks to the deputies, Minister Castro Almeida had already mentioned that one of the government’s goals is “for exports to represent more than 50% of GDP and approach 55%.”
During the question-and-answer session, the minister argued that this budget proposal “lowers taxes and increases income,” recalling that “in 2024, Portugal saw the largest increase in labor income across the OECD, and in 2025, in the first semester, labor incomes increased in real terms by 3.4%.”
“A budget that lowers taxes, increases incomes, maintains balanced accounts, and boosts investment. We would have a prosperous future if we had several budgets like this over the coming years,” he argued after IL deputy Miguel Rangel criticized the budget for lacking responses to the necessary ambitions of Portugal’s structural economic challenges.
Following questions from PS deputies on the subject, Castro Almeida also confirmed that “the school renovation program is indeed set to proceed.”
Castro Almeida emphasized that the government inherited “the commitment” to “fund the renovation of more than 500 schools,” divided across three priority levels.
“The first priority is already under bid, and the others will be launched soon so that all works can be completed by 2030, as outlined in the contract. Therefore, the contract is indeed to be fulfilled,” he stressed.
During this round of questions, PS deputy Armando Mourisco expressed confusion over the government’s economic strategy and warned that the country “remains dependent on community funds,” such as the PRR or Portugal 2030, and tourism.
The socialist also accused the executive of not investing in the country’s interior, a critique shared by Chega deputy Barreira Soares, who described the document as “very poor” in this regard.
This criticism was rejected by Minister Castro Almeida, who argued that “the government’s good measures are for the entire country, both coastal and inland,” with some specifically aimed at the interior, such as the allocation of European funds.
“We are now negotiating with the European Investment Bank to, besides financing the creation of business hosting areas in interior territories, also support municipalities that wish to carry out their own housing developments, so that people can arrive and have a lot ready to build a house,” he added.
The official maintained that this measure “will lower housing prices and bring more land to market for building homes in the interior.”
