Portugal Plans Fourth Surplus Despite Tax Cuts, Housing Push

Portugal is forecast to narrowly maintain a budget surplus in 2026, marking its fourth consecutive year of positive accounts, as the government balances tax relief and housing spending with fiscal discipline.

The government projects a surplus of 0.1% of gross domestic product in 2026, compared with 0.3% this year, according to the budget proposal submitted to parliament on Thursday. Economic growth is expected at 2% in 2025 and 2.3% in 2026 due to higher investment.

Finance Minister Joaquim Miranda Sarmento said at a press conference that an increase in government spending and investment would help bolster economic growth next year. ...