Portugal receives Fitch credit rating upgrade to A+

Portugal has received a significant sovereign credit rating upgrade from Fitch, which raised the country's rating to A+. This marks the highest rating for the nation in fifteen years, placing it on a similar level to France and Belgium. Fitch attributed the upgrade to falling public debt, budget performance that exceeded expectations, and persistent current-account surpluses.

Projections indicate that Portugal's general government debt will decrease from 89.7% of GDP in 2025 to 87% in 2026, reaching 82.9% by 2028. This fiscal improvement is supported by solid economic growth and a healthy labor market, with unemployment reaching its lowest level since 2002 at 5.6% in June.

The economic momentum follows The Economist naming Portugal its economy of the year for 2025. This recognition was based on performance in inflation, GDP growth, employment, and stock market trends. The improved credit standing is expected to lower borrowing costs and enhance the appeal of investment programs, such as the Golden Visa residency-by-investment scheme.