In its 2025 ranking of 36 rich countries, The Economist chose Portugal as “economy of the year”, ahead of Ireland, Israel and Spain. Portugal managed to combine solid GDP growth, low inflation and a strong stock market – with tourism and an influx of affluent foreigners playing a central role. For international families using the Portugal Golden Visa and regulated private equity funds, this macro backdrop matters.
By Explorer Investments • Updated December 8, 2025
Economist rank
#1 / 36
Portugal GDP Q3 2025
+2.4%
Share prices YoY
+20.9%
Investor focus
Golden Visa funds
“In 2025 Portugal managed to combine strong GDP growth, low inflation and a rising stock market – The Economist, “Which economy did best in 2025?””
For the fifth year in a row, The Economist compiled a league table of 36 of the world’s richest countries to identify which economy performed best in 2025. The magazine used five indicators: inflation, deviation from inflation target, GDP growth, employment and stock market performance.
Portugal tops the list for 2025, followed by Ireland (2nd) and Israel (3rd). Spain – last year’s winner – shares fourth place with Colombia. At the other end of the ranking are Estonia, Finland and Slovakia.
In its article “Which economy did best in 2025?” The Economist highlights that Portugal managed to combine strong GDP growth, low inflation and a rising stock market, with tourism and the arrival of wealthy foreigners playing a significant role.
The chart used by The Economist – titled “As sweet as a pastel de nata” – compares real GDP growth and share-price performance across OECD economies in Q3 2025, year-on-year. Portugal ranks first with GDP up 2.4% and share prices up 20.9%.
Below is a simplified version of the data for selected countries, based on the table published by The Economist:
| Rank | Country | GDP YoY (%) | Share prices YoY (%) |
|---|---|---|---|
| 1 | Portugal | 2.4 | 20.9 |
| 2 | Ireland | 3.2 | 20.1 |
| 3 | Israel | 3.5 | 53.3 |
| 4= | Colombia | 3.4 | 43.8 |
| 4= | Spain | 2.8 | 35.0 |
| 6= | Czech Republic | 2.8 | 46.2 |
| 6= | Greece | 1.7 | 44.0 |
| 8 | Canada | 1.4 | 24.0 |
| 9 | Slovenia | 1.6 | 52.8 |
| 10 | Poland | 3.8 | 33.5 |
| 27 | Britain | 1.3 | 15.2 |
| 28 | Sweden | 2.5 | 1.7 |
| 29 | Norway | -1.3 | 13.5 |
| 30 | Mexico | -0.2 | 18.3 |
| 31 | New Zealand | -0.6 | 3.0 |
| 32 | Lithuania | 2.1 | 20.8 |
| 33 | Austria | 0.6 | 28.6 |
| 34 | Estonia | 0.9 | 11.0 |
| 35 | Finland | -0.7 | 12.6 |
| 36 | Slovakia | 0.9 | -12.7 |
Source: The Economist, “Which economy did best in 2025?”, OECD data, Q3 2025 year-on-year changes in real GDP and share prices.
The Economist singles out tourism and inward migration of wealthy foreigners as key drivers of Portugal’s performance in 2025. Tourism is booming: Portugal recently took home 12 global prizes at the World Travel Awards, with the Algarve named World’s Best Beach Destination and Madeira crowned World’s Best Island Destination.
We explore that side of the story in detail in our tourism-focused article: Portugal Wins 12 World Travel Awards 2025 – Algarve, Madeira and Golden Visa Outlook.
At the same time, Portugal continues to attract international families, entrepreneurs and remote workers looking for a safe European base with quality healthcare, international schooling and a favourable time zone. Some are driven by lifestyle alone; others combine lifestyle with a structured Portugal Golden Visa and long-term residence plan.
“Golden Visa capital should not sit idle in a single asset. A regulated fund allows investors to plug into Portugal’s macro story – tourism, infrastructure, housing and more – with diversification, governance and professional management.”
For Golden Visa investors, macro data is not just academic. A resilient, growing economy supports:
Since recent legal changes, the flagship route into the Portugal Golden Visa is the €500,000 investment into an eligible, CMVM-regulated investment fund. Many international families now prefer this fund route over buying property directly, as it offers diversification and avoids day-to-day asset management.
If you are starting to map out the process, our Portugal Golden Visa Fund Route: Complete Application Checklist for 2026 breaks the journey into practical steps – from choosing a CMVM fund and opening a bank account to subscription, biometrics and renewals.
Portugal’s recognition as “economy of the year” is not an isolated headline. It is part of a wider pattern that includes record tourism awards, growing inflows of international residents and strong interest from American, British, Middle Eastern and Asian investors.
If you are comparing Portugal with other lifestyle-driven residence options, you may find it helpful to read our global comparison piece: 5 Trending Retirement & Golden Visa Destinations for Americans (2025). It sets Portugal alongside Spain, Greece and key offshore alternatives, highlighting differences in tax, lifestyle and long-term mobility.
Taken together, the World Travel Awards, The Economist’s ranking and the evolution of the Golden Visa regime suggest one clear conclusion: Portugal is moving from “nice holiday spot” to structural pillar in global wealth planning.
The Economist ranked 36 rich countries using five indicators: GDP growth, inflation, deviation from inflation targets, employment and stock market performance. Portugal scored strongly on all of them in 2025, combining growth, price stability and rising share prices.
No. Golden Visa rules are set by Portuguese law, not by rankings. What the ranking does is reinforce confidence in Portugal’s macro fundamentals, which is relevant when deciding where to commit capital for five to ten years via a regulated fund.
Tourism is a major contributor, but not the only one. Structural reforms, rising exports, tech and service industries, plus inflows of international talent and residents all play a part in GDP and employment growth.
Property concentrates risk in a single asset and requires hands-on management. A CMVM-regulated fund gives you diversification, professional oversight, independent custody and audited reporting – while still fulfilling Golden Visa requirements if it is eligible.
The standard minimum is €500,000 into an eligible investment fund. Some families allocate more to better align with their broader asset allocation and estate planning. Always confirm the latest thresholds with legal and tax advisers.
Explorer manages regulated funds that are structured to be compatible with Portugal’s legal framework and Golden Visa requirements. You should always request the latest documentation and check eligibility with your legal counsel before subscribing.
Golden Visa investors generally plan for a multi-year horizon (often 6–10 years) to cover residency requirements, renewals and a realistic exit window. Funds normally have a defined term and exit strategy, which you should understand before committing capital.
Portugal combines an EU passport path, Schengen access, a mild climate, safety and relatively low cost of living. Other programmes may focus more on tax incentives or faster timelines. Our comparison article on trending retirement and Golden Visa destinations can help you benchmark Portugal against alternatives.
The Economist’s recognition caps a year in which Portugal also dominated global tourism awards and continued to attract record numbers of international residents. For globally mobile families, the message is clear: Portugal is not just a beautiful place to visit – it is a credible, data-backed choice for long-term residence and capital allocation.
Through regulated private equity and real asset funds, Explorer’s goal is to transform this macro momentum into disciplined, risk-aware opportunities that qualify for the Golden Visa and fit into a broader wealth strategy.
If you are considering Portugal for 2026, the logical next step is to map out your Golden Visa timeline, clarify your investment criteria and speak with advisors who understand both the legal framework and the fund universe.
Whether you are exploring the Portugal Golden Visa for EU residency or you simply want to allocate capital to private equity funds in Portugal, our Investor Relations team can help. We will walk you through CMVM-regulated fund options, clarify how they work for residency and for pure investment, and coordinate with trusted immigration and tax advisers. Schedule your confidential, no-obligation strategy call today.
André Bandeira
ab@explorerinvestments.com
Maria Campos Silva
mcs@explorerinvestments.com
For Indian investors comparing Mauritius, UAE, Greece, Italy, USA, Canada, New Zealand, Hong Kong and Singapore golden visa options, this 2025–26 guide explains why Portugal’s Golden Residence Permit and €500,000 CMVM-regulated fund route stand out as a strategic EU choice for families.
Balanced, opinion-led guide to the Portugal Golden Visa in 2026, setting out 8 key advantages and 3 important drawbacks of the €500,000 CMVM-regulated fund route – with a focus on private equity, Explorer Investments and long-term residency planning.
Strategic guide for global executives and families on how the Portugal Golden Visa fund route creates a path to EU residency, potential citizenship and enhanced global mobility, while deploying capital into CMVM-regulated Portuguese private equity funds.
Get your complete, free guide to the Portuguese Golden Visa. Learn how to invest with confidence through Explorer Investments, the country's largest private equity fund.
André Bandeira
ab@explorerinvestments.comMaria Campos Silva
mcs@explorerinvestments.comCopyright © 2025 Explorer Investments
It is recommended to consult Chapter V of Decree-Law nº 162/2014, of October 31st, published in the Official Gazette, as well as its revision by Law nº 2/2020, of March 31st. The information included here is of a general nature, and therefore each potential investor should seek independent advice (e.g., legal, financial, tax, etc.)