Portugal Surpasses Budget Expectations with Surprising Surplus

Portugal has exceeded budget expectations by posting a budget surplus of 0.7% of its gross domestic product last year, a higher figure than previously anticipated. This comes from the National Statistics Institute (INE), which has also forecasted a smaller surplus of 0.1% for this year.

The centre-right minority government initially predicted a surplus of 0.3% of GDP by 2025, with this year's projections matching the new 0.1% figure. This marks a consistent pattern of fiscal management that continues to outperform expectations.

In its update on the country's excessive deficit procedure reported to Brussels, the INE noted that Portugal's debt-to-GDP ratio is expected to decrease to 87.5% by the end of 2026, down from the previous year's 89.7% level, suggesting positive steps towards economic stability.