Portugal Named Top-Performing OECD Economy for 2025

A promising signal for businesses, investors, and exporters.

A Standout Year for Portugal’s Economic Performance

Portugal has been named the best-performing economy in the OECD for 2025, according to an assessment published by The Economist on December 7. The ranking, which evaluates 36 advanced economies, highlighted Portugal’s balanced combination of robust GDP growth, stable inflation, strong employment trends, and impressive stock market performance.

“A fair acclamation of the merit and work of the Portuguese people,”

— Prime Minister Luís Montenegro

The findings mark a shift in momentum within Europe. While Spain topped the ranking in 2024, Portugal’s consistent performance pushed it to first place in 2025.

A Healthy Mix of Growth and Stability

In the year leading up to Q3 2025, Portugal recorded GDP growth of 2.4%, surpassing many EU peers. Inflation remained controlled, contributing to improved household confidence, while the domestic stock market climbed over 20%, signaling strong investor sentiment.

This balanced performance was central to Portugal’s rise in the ranking, according to The Economist’s composite scoring model.

“Portugal distinguished itself by achieving growth without overheating — a rare combination in the current global climate. ”

Tourism, Investment, and International Appeal Drive Results

Two structural factors played a significant role in Portugal’s strong economic showing:

• A resilient tourism sector, which continues to attract millions of visitors, supporting employment and regional development.

• Growing interest from foreign residents and investors, drawn by Portugal’s lifestyle, safety, and favourable tax frameworks.

Together, these forces helped sustain domestic demand, reinforce the real estate and service sectors, and attract new streams of capital.

Why This Matters for Agri-Food and Premium Producers

Portugal’s recognition comes at a pivotal moment for export-oriented industries. For premium agri-food producers — from cured meats and cheeses to wines and gourmet goods — a strong macroeconomic outlook enhances:

• Credibility in global markets

• Investor appetite for sector expansion

• Opportunities for international partnerships

• Confidence in long-term growth strategies

This aligns directly with LVT Global’s mission: to transform local excellence into global opportunity.

Looking Ahead: A Climate of Confidence

Portugal’s strong performance reflects not just cyclical momentum but deeper structural strengths — diversified sectors, attractive talent, and growing global visibility. While challenges remain, the country enters 2026 with positive momentum and renewed economic confidence.

For companies seeking to grow internationally, Portugal’s trajectory offers a compelling foundation.

About LVT Global

LVT Global helps premium agri-food producers elevate their brands and expand internationally through strategic insight, market entry expertise, and powerful storytelling.