For the fifth consecutive year, “The Economist” has compiled a ranking of the world’s 36 wealthiest countries to identify the top-performing economy.
This year, Portugal ranks first, overtaking last year’s winner, Spain, which shares the same score with Colombia in 2025.
The list was created using data from five economic indicators: inflation, inflation deviation, Gross Domestic Product (GDP), employment, and stock market performance.
“In 2025, [Portugal] managed to combine strong GDP growth, low inflation, and a booming stock market,” the magazine stated.
Driving Portugal’s GDP and employment growth, according to “The Economist,” is tourism, at a time when “many wealthy foreigners are moving to the country to benefit from low tax rates.”
Ireland ranks second on the list, with Israel following.
Among the lowest ranked are primarily northern European economies: Estonia, Finland, and Slovakia trail in this compilation of indicators.
Recognition “is a just acclaim of the merit and work of the Portuguese,” Montenegro highlights
In a post on the X network, Prime Minister Luís Montenegro stated that “the recognition by ‘The Economist’ that the ‘economy of the year’ was Portuguese is a just acclaim of the merit and work of the Portuguese, reinforcing the Government’s motivation to continue on the path that has brought us here in recent months.”
“By reforming with courage and making the country more competitive and productive, we will continue to create jobs, increase wages, and strengthen the social state. This will provide more well-being and a brighter future for the Portuguese,” the prime minister added.
It is with hope and confidence that we witness an exceptional international recognition of Portugal. The distinction by “The Economist” that the “economy of the year” was Portuguese is a just acclaim of the merit and work of the Portuguese and reinforces the Government’s motivation in…
— Luís Montenegro (@LMontenegro_PT) December 7, 2025
Government forecasts indicate economic growth of 2% this year and 2.3% next year.
