The financial rating agency Fitch raised Portugal's debt rating from A to A+, also changing the outlook from positive to stable. This upgrade, which occurred one year after the previous revision, reflects the strengthening of Portugal's public finances, including a projected trajectory of public debt reduction and considerably stronger budget balances than those of its peers, supported by a strong political commitment to fiscal prudence.
Fitch also revised upwards its forecasts for Portuguese GDP growth, now projecting an expansion of 2.1% this year and 1.9% in 2027 and 2028. The agency considers that economic dynamism will continue to be driven by consumption and investment, while the damage caused by the storms at the beginning of the year will have a reduced net impact, since reconstruction work should compensate for most of the losses.
The Minister of Finance, Joaquim Miranda Sarmento, classified the upgrade as "another great victory for Portugal," highlighting that it occurs in a context marked by uncertainty and geopolitical and economic instability. The President of the Republic, António José Seguro, considered the decision "excellent news" and "an important external recognition of Portugal's performance," affirming that it confirms the importance of stability, predictability, and responsibility in guiding the country.
With this revision, Portugal matches the rating assigned by S&P and enters the top ten ratings of the European Union, where countries such as Germany, Denmark, Luxembourg, the Netherlands, and Sweden are found. In the eurozone, only six countries have a rating higher than Portugal.
