Portugal has been chosen as “economy of the year” by British magazine The Economist, which has compiled data on the economies of 36 of the richest countries in the world for the second year running.
The distinction comes as the government of prime minister Luís Montenegro is under fire for its perceived failure to assuage unions to turn back from their decision to call a general strike (coming on Thursday).
Over social network ‘X’, Mr Montenegro has said: “It is with hope and confidence that we see Portugal receiving exceptional international recognition. The distinction awarded by The Economist magazine, naming Portugal’s economy as the ‘economy of the year’, is a fitting tribute to the merit and hard work of the Portuguese people and reinforces the Government’s motivation to continue on the path that has brought us this far in recent months. It is by reforming with courage and making the country more competitive and productive that we will continue to create jobs, increase wages and strengthen the welfare state. In this way, we will provide greater well-being and a better future for the Portuguese people. Let’s do this, Portugal! Let’s do this, Portuguese people!“
The Economist’s rating has pushed neighbouring Spain (in top position last year) well off the podium, and into fourth place.
The magazine’s analysis uses five ‘economic indicators’ to classify countries’ economic performances: inflation, the diversion of inflation, GDP, employment and unemployment.
‘In 2025, (Portugal) managed to combine strong GDP growth, low inflation and a booming stock market,’ says the article, which sees tourism and employment as driving GDP “at a time when many wealthy foreigners are moving to the country to take advantage of low tax rates.”
Ireland comes second in the ranking, followed by Israel.
The worst positions are mainly occupied by economies further north in Europe: Estonia, Finland and Slovakia are at the bottom of this compilation of indicators. The United Kingdom is in position 27 – and the United States is in 17th position.
For Portugal’s current executive, which is not ‘riding high’ in the media right now, The Economist’s recognition is a marvellous way in which to close 2025 – even with the agony of a general strike to cope with, and the resulting fall-out.
The AD coalition government has forecasted economic growth of 2% this year, and 2.3% next year.
Source: SIC / The Economist
