A new report highlights the resilience of Portugal's economy in trade and tourism while signalling weaknesses in manufacturing.
Portugal’s economy secures low-risk rating even as industrial sector stalls
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Portugal’s economy has been assigned an A2 rating for low business risk in the latest assessment by Coface, the global trade credit insurance and risk management firm. The country now joins a select group of European nations – including Spain, the Netherlands, Belgium and Sweden – to hold this designation.
Globally, this positions Portugal’s economy alongside those of the United States, Japan and Australia, reflecting a strong standing amid a period of international uncertainty, according to a Portuguese media report.
While the wider economic outlook remains solid, supported by robust private consumption and investment, the report notes that growth is expected to moderate throughout 2026. Portugal is nonetheless projected to remain among the top-performing economies within the eurozone.
[See more: Portugal unveils plans for a new Lisbon airport]
Domestic confidence indicators continue to show strength across the retail, construction and services sectors. Tourism has also maintained dynamic growth, rising 3 percent in May, with the country capitalising on a reputation as a safe destination.
However, the report identifies manufacturing as a primary weakness for the Portuguese economy. Industrial production remains stagnant, sitting at the same level as three years ago and 5 percent below the figures recorded in mid-2022.
Beyond Portugal’s economy: global ratings
The global risk landscape has seen significant shifts, with Coface downgrading eight countries in its latest update.
Indonesia, Malaysia, the Philippines, Vietnam and Kuwait have moved from A4 to B, Tanzania has fallen from B to C, and Cambodia and Madagascar have been downgraded from C to D. These adjustments are attributed to a combination of factors, including Middle Eastern conflict, rising energy costs, trade tensions and tightened financial conditions.
Coface evaluates 160 countries every four months, assessing the risk of corporate default through a range of macroeconomic, financial, political and insolvency indicators.
