Portugal Named “Economy of The Year” by The Economist

The UK magazine The Economist made its yearly selection of the best economies of 2025, and Portugal has been recognized as Economy of the Year, among the 36 richest countries in the world. 

Portugal's economy was defined as “sweet as a pastel de nata” by the British magazine The Economist. The publication named Portugal as the “Economy of the Year 2025”, leading the ranking of the 36 richest countries. The choice is based on an analysis of five indicators: inflation, inflation deviation, GDP, employment, and stock market performance. 

The country has stood out for its robust economic growth, low inflation, and a positive capital market, in addition to the dynamic tourism and the increase of foreign rich residents, who benefit from low taxes. These factors are among the main contributions to the Portuguese economy and this achievement. 

In a social media post, Prime Minister Luís Montenegro highlighted this distinction as an “acclamation of the merit and work of the Portuguese people” and reinforced the continued work of the current Government to make the Portuguese economy even stronger. 

According to the Portuguese Government forecasts, it is expected that there will be a growth in the Portuguese economy of 2% in 2025 and 2.3% in 2026. 

Portugal is the 4th best place to retire 

This month, Portugal was also ranked as the 4th best country to retire, only after Greece, Panama, and Costa Rica. The Annual Global Retirement Index is a yearly ranking that nominates the best places to retire considering multiple factors, as climate, geography, healthcare, and cost of living. 

Portugal is best known for its warm climate and the geographic variety, from green hills to sandy beaches, crystal waters, and safety, making it a peaceful country to enjoy the best of life.