As of 2023, Portugal’s Gross Domestic Product (GDP) was approximately $287.08 billion USD, reflecting a 12.49% increase from the previous year.
This growth was driven by a combination of factors, including a rebound in tourism, increased exports, and domestic consumption.
In the first quarter of 2024, the Portuguese economy expanded by 0.8% compared to the previous quarter, marking the strongest GDP performance in a year.
However, the second quarter saw a significant slowdown, with GDP growth of only 0.1%, primarily due to stagnating exports and a decrease in private consumption.
Looking ahead, the Bank of Portugal has revised its economic growth forecast for 2024 down to 1.6% from the previously projected 2.0%, citing a weak third quarter attributed to a slowdown in exports and private consumption.
The government anticipates a budget surplus of 0.3% of GDP for the current year, down from 1.2% in 2023.
In October 2024, the Portuguese parliament approved the centre-right minority government’s 2025 budget bill on its first reading. The budget projects a 2.1% growth in the economy and a budget surplus of 0.3% of GDP, with a debt-to-GDP ratio of 93.3%. The final vote is set for November 29.
Overall, while Portugal’s economy has shown resilience and growth in recent years, it faces challenges such as fluctuating export performance and domestic consumption, which are influencing current and future economic projections