Portugal's GDP per capita projected to drop to 80% of EU average

Portugal's Economy and Territorial Cohesion Minister warned that a revised estimate of the resident population will cause a substantial reduction in the country's GDP per capita, bringing it to roughly 80% of the European Union average. The government says this gap implies a convergence period of about 30 years, highlighting long‑term stagnation and low productivity that have kept Portugal among the poorest EU members.

In a separate interview, the Governor of the Bank of Portugal discussed the European Central Bank's recent rate hikes, noting that the ongoing Middle‑East conflict and related energy price volatility could prompt another increase in July. He emphasized that future monetary decisions will be data‑driven, balancing inflation control with the broader economic impact on wages and services.