Portugal Economy

Europe & Central Asia · High income · Capital: Lisbon

Updated 17 Oct 2026

GDP Annual Growth Rate in Portugal increased to 2.64 percent in Q2 2026 from 2.36 percent in Q1 2026. Inflation Rate in Portugal increased to 3.30 percent in Aug 2026 from 3.04 percent in Jul 2026.

GDP Growth
2.6%
▲ +0.3 pp Q2 2026 · OECD
Inflation Rate
3.3%
▲ +0.3 pp Aug 2026 · BIS
Interest Rate
2.50%
▲ +0.25 pp Sep 2026 · BIS (ECB)
Unemployment
5.7%
■ 0.0 pp Aug 2026 · OECD

GDP Growth Rate

Real GDP, annual % change. Hatched bars are IMF projections.

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Inflation vs Interest Rate

Monthly data, %. Source: BIS, BIS (ECB).

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Key Highlights

  • Real GDP grew 2.6% in Q2 2026 (previous year: 2.4%).
  • Consumer price inflation was 3.3% in Aug 2026, compared with 3.0% in the previous period.
  • The ECB policy rate (which applies to all euro-area members) stood at 2.50% at the end of Sep 2026 (previous: 2.25%).
  • The unemployment rate was 5.7% in Aug 2026 (previous: 5.7%).
  • General government debt was 89.7% of GDP in 2025.
  • The IMF projects real GDP growth of 2.1% for 2026 (World Economic Outlook projection).

Main Indicators

IndicatorLastPreviousPeriodTrendSource
GDP Annual Growth Rate2.6%2.4%Q2 2026OECD
Interest Rate2.50%2.25%Sep 2026BIS (ECB)
Inflation Rate3.3%3.0%Aug 2026BIS
Unemployment Rate5.7%5.7%Aug 2026OECD
Government Debt to GDP89.7%93.5%2025IMF
Balance of Trade$3.2B$6.2B2025World Bank
Current Account to GDP1.2%2.5%2025World Bank
GDP$346.6B$313.7B2025World Bank

GDP

IndicatorLastPreviousPeriodTrendSource
GDP per Capita$32,082$29,3282025World Bank
GDP per Capita PPP$53,146$52,5132025World Bank
Gross National Income$340.7B$307.8B2025World Bank
GDP from Agriculture2.0%2.0%2025World Bank
GDP from Industry18.3%18.7%2025World Bank
GDP from Manufacturing11.3%11.7%2025World Bank
GDP from Services66.6%66.3%2025World Bank
Gross Fixed Capital Formation20.7%20.4%2025World Bank
Household Consumption to GDP61.0%60.8%2025World Bank
GDP Growth Rate0.94%0.25%Q2 2026OECD

Labour

IndicatorLastPreviousPeriodTrendSource
Youth Unemployment Rate20.2%21.8%2025World Bank
Labour Force Participation Rate58.2%58.4%2025World Bank
Employment Rate54.6%54.6%2025World Bank
Population10.80M10.69M2025World Bank

Prices

IndicatorLastPreviousPeriodTrendSource
GDP Deflator Growth3.9%4.9%2025World Bank
Core Inflation Rate2.1%2.0%Dec 2025OECD
Inflation Rate MoM0.09%-0.29%Dec 2025OECD
Food Inflation3.5%3.5%Dec 2025OECD

Money

IndicatorLastPreviousPeriodTrendSource
Foreign Exchange Reserves$68.8B$42.4B2025World Bank
Private Debt to GDP128.6%128.1%Q1 2026BIS
Government Bond 10Y Yield3.85%3.54%Sep 2026OECD
Interbank Rate2.64%2.51%Sep 2026OECD

Trade

IndicatorLastPreviousPeriodTrendSource
Current Account$4.1B$8.0B2025World Bank
Exports$151.3B$143.7B2025World Bank
Imports$148.2B$137.5B2025World Bank
Foreign Direct Investment$11.97B$12.91B2025World Bank
Remittances$2.71B$2.32B2025World Bank
Terms of Trade97.095.52024World Bank
Tourist Arrivals4.21M17.28M2020World Bank
Tourism Revenues$10.52B$24.59B2020World Bank

Government

IndicatorLastPreviousPeriodTrendSource
Government Budget0.7%0.6%2025IMF
Government Revenues to GDP43.5%43.5%2024IMF
Government Spending to GDP42.8%42.3%2024IMF
Tax Revenue to GDP22.3%22.7%2024World Bank
Military Expenditure1.71%1.44%2025World Bank

Business

IndicatorLastPreviousPeriodTrendSource
Industrial Production-3.8%-0.9%Aug 2026OECD
Business Confidence99.6199.57Sep 2026OECD

Consumer

IndicatorLastPreviousPeriodTrendSource
Retail Sales YoY2.4%2.6%Aug 2026OECD
Consumer Confidence98.6798.82Sep 2026OECD

Housing

IndicatorLastPreviousPeriodTrendSource
Residential Property Prices17.8%18.9%Q1 2026BIS

Portugal economy explained in simple words

Size of the economy

The economy of Portugal produced goods and services worth $346.6B in 2025, making it the 46th largest of 214 economies with data.

With a population of about 10.8 million, GDP per person is $32,082. The World Bank classifies Portugal as a “high income” economy.

Economic growth

Real GDP grew 2.6% in 2026, compared with world growth of 3.5% (IMF).

Over the last 10 years growth averaged 2.3% a year, ranging from 1.8% to 3.0%.

The IMF projects growth of 2.1% in 2026.

Prices and interest rates

Consumer price inflation was 3.3% in Aug 2026 (reference: the European Central Bank’s 2% target).

The European Central Bank policy rate, which applies to all euro-area members, was 2.50% at the end of Sep 2026.

The difference between the two — the real interest rate — is about -0.80%.

Jobs

The unemployment rate was 5.7% in Aug 2026 (world: 4.8%).

About 58.2% of people aged 15 and over are in the labour force (working or looking for work).

Government finances

General government debt was 89.7% of GDP in 2025, compared with a median of 52.9% across 191 economies.

The government budget balance was 0.7% of GDP (2025) — a surplus, meaning revenue exceeded spending.

Trade and external position

The current account was 1.2% of GDP in 2025 — a surplus with the rest of the world.

Exports of goods and services were $151.3B and imports $148.2B.

Foreign exchange reserves (including gold) stood at $68.8B.

Structure of the economy

By sector, value added is split roughly as: services 66.6%, industry 18.3%, agriculture 2.0% of GDP.

How to read this page

The four boxes at the top show the most-watched numbers: GDP growth (how fast the economy is expanding), inflation (how fast prices are rising), the central bank policy rate (the base cost of borrowing) and unemployment (the share of job-seekers without work). The small arrow shows the change from the previous reading.

The tabs group all available indicators by topic — GDP, labour, prices, money, trade, government and housing. Each row shows the latest value, the previous value, the period it refers to, a small trend line and the source. Click any indicator to open its full history, chart, statistics and comparison with other countries.

Monthly and quarterly figures come from national statistics offices and central banks — via the OECD, the Bank for International Settlements (BIS) and, for India, the Ministry of Statistics (MoSPI); annual figures come from the World Bank and the IMF. Different indicators are published at different times, so the periods shown can differ.

Frequently asked questions

What is the GDP growth rate of Portugal?
The latest GDP growth rate of Portugal is 2.6% (Q2 2026), compared with 2.4% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the inflation rate of Portugal?
The latest inflation rate of Portugal is 3.3% (Aug 2026), compared with 3.0% in the previous period. Source: Bank for International Settlements (BIS).
What is the interest rate of Portugal?
The latest interest rate of Portugal is 2.50% (Sep 2026), compared with 2.25% in the previous period. Source: BIS / European Central Bank (euro area policy rate).
What is the unemployment rate of Portugal?
The latest unemployment rate of Portugal is 5.7% (Aug 2026), compared with 5.7% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the government debt to GDP ratio of Portugal?
The latest government debt to GDP ratio of Portugal is 89.7% (2025), compared with 93.5% in the previous period. Source: IMF — World Economic Outlook.

Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.