Portugal has been distinguished by the British magazine The Economist as the "Economy of the Year” in 2025, leading the annual ranking that evaluates the economic performance of the world’s 36 richest countries.
The choice is based on the analysis of five key indicators—inflation, deviation from inflation, Gross Domestic Product (GDP), employment, and stock market performance—where Portugal stood out by combining robust economic growth, low inflation, and a rising stock market.
In a post on the X platform, Prime Minister Luís Montenegro подчеркed that this distinction is "a fair recognition of the merit and hard work of the Portuguese people” and reinforces "the Government’s motivation to continue on the path that has brought us here in recent months.”
The Prime Minister added that "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.”
According to the publication, "in 2025, Portugal managed to combine strong GDP growth, low inflation, and a buoyant stock market.” Among the factors driving economic performance, The Economist highlights the dynamism of tourism and the growing attraction of foreign residents, within a context of fiscal competitiveness.
In this year’s ranking, Portugal succeeds Spain, the 2024 winner, which has now dropped to fourth place. Ireland and Israel occupy second and third positions, respectively. At the opposite end, the economies of Estonia, Finland, and Slovakia appear among those most penalized across the set of indicators evaluated.
The Prime Minister added that "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.”