The Gross Domestic Product (GDP) accelerated more than expected in the third quarter, rising from 1.8% to 2.4%, according to the Fórum para a Competitividade. The report noted that “the positive contribution of domestic demand remained close to what was observed in the previous quarter, while the negative contribution from net external demand was less pronounced.”
In this context, considering the indicators available for recent months, “there might have been some slowdown in activity at the beginning of the fourth quarter, but not very significant. It is necessary to wait for more signs and indicators to confirm this potential trend.”
Thus, the Fórum believes that “it is more likely that the average annual GDP growth for 2025 will ultimately settle at 1.9%, but the 2.0% value, as indicated in the State Budget for 2026, could still be reached.”
Among the institutions monitoring the Portuguese economy, the government remains the most optimistic in its growth forecasts for this year.
On the other hand, “there is unanimity among different institutions that growth in 2026 will be slightly better than that recorded in 2025,” notes the Fórum para a Competitividade.
In the macroeconomic scenario, the PSD/CDS-PP Government forecasts that the Gross Domestic Product will grow by 2% this year and 2.3% in 2026.
