The Finance Minister, Joaquim Miranda Sarmento, emphasized on Friday that the upgrade of Portugal’s rating by Fitch “confirms the solid path we have been on,” in addition to being a “recognition of the work” carried out by the government, families, and businesses.
“The upgrade of Portugal’s rating to A, the second in just two weeks, confirms the solid path we have been on: balanced accounts, sustained debt reduction, and growth above the Eurozone average,” he wrote on the social network X (formerly Twitter).
The Ministry of Finance further noted that “this decision is another achievement for Portugal and the recognition of the work being done by the government, families, and businesses towards promoting economic growth, ensuring the balance of public accounts, and the sustained reduction of public debt.”
The ministry also noted that this is “the second upward review of Portugal’s rating in just two weeks,” as “at the end of August, Standard & Poor’s (S&P) also raised the debt rating from ‘A’ to ‘A+’.”
Fitch’s upgrade of Portugal’s rating to A, the second in just two weeks, confirms the solid path we have pursued: balanced accounts, sustained debt reduction, and growth above the Eurozone average. https://t.co/SRxlrvFOYH
— Joaquim Miranda Sarmento (@JMirandSarmento) September 12, 2025
“As the rating is crucial for how the country is perceived by external investors and for its financing costs, this second rise in financial rating is excellent news for Portugal and the Portuguese,” he stressed.
The organization pointed out that, from Fitch’s perspective, “Portugal is one of the countries that has most succeeded in reducing public debt among those analyzed, maintaining a prudent budgetary policy and robust growth,” highlighting that “the country has recorded better budget performance than its peers,” and that “the reduction in external debt and the outlook for the Portuguese economy, with growth above the Eurozone average in 2026 and 2027,” are also positive.
Portuguese performance is “superior to most of its peers with a similar rating”
The financial rating agency Fitch has upgraded Portugal’s rating from A- to A on Friday, with a stable outlook, taking into account the ongoing reduction in debt, a balanced budget position, reduced deficits from 2026, increased exports, and resilient growth.
For Fitch, the Portuguese budget performance is “superior to most of its peers with a similar rating,” with the agency expecting “a budget surplus of 0.1% of GDP in 2025.”
The agency projects GDP growth of 1.8% in 2025, “driven by increased real incomes, a robust labor market, and public investment supported by the PRR [Recovery and Resilience Plan], while net exports will have a modest impact on growth, in a context of weaker external demand and higher imports.”
Additionally, it expects “growth to accelerate to 2.2% in 2026, due to resilient consumption, tax cuts, and faster implementation of the PRR, while lower interest rates and reduced uncertainty support private investment.”
For 2027, the entity projects that “growth will slow to 1.7% as public investment related to the PRR normalizes.”
