Portugal enjoys greater convergence with EU average as Portugal’s economy grows at double the rate expected

Portugal is expected to continue to grow above the European Union (EU) average until 2026, in a cycle of economic convergence that is higher than that estimated for most member states.

But this will only be the case if various risks to Europe’s economy do not appear according to the European Commissions’ Autumn Economic Statement.

The EC estimates that Portugal’s economy stands on course to grow 1.7% this year (more than double its 0.9% forecast) with three consecutive quarters of growth above the average of the EU member states.

And the Commission expects convergence to be maintained at least until 2026, with some margin. According to Brussels’ forecasts, the Portuguese economy could grow 1.9% in 2025 and 2.1% the following year, in both cases higher than expected for the EU average (1.5% and 1.8%, respectively).

Most economists agree that for a developed economy, an annual GDP growth rate of 2%-3% is considered normal. Therefore, any GDP growth above the said rate is a strong sign that an economy is expanding and prospering. A prospering economy creates more wealth, which leads to increased spending.