1. Portuguese Economic Growth Accelerates in 2025
The Portuguese economy is expected to accelerate in 2025, with a growth rate around 2%, driven by exports, consumption, and investment. Institutions such as the Ministry of Finance, Bank of Portugal, and IMF project growth between 2.1% and 2.4%. However, the external environment poses significant risks, particularly political crises in France and Germany, which could affect trade and economic stability in the Eurozone. The international uncertainty, including geopolitical risks and the trade policies of the U.S., particularly under Trump, also adds to the challenges facing Portugal’s economic trajectory.
Despite the external threats, economists remain optimistic, citing the Recovery and Resilience Plan (PRR) as a key driver of growth, especially if EU funding is used for productive investment. While there are favorable indicators in inflation, unemployment, and public accounts, the economy still faces structural weaknesses, such as low investment and productivity growth. The expected recovery continues to be slightly below Portugal’s potential, with export challenges and the international trade environment complicating efforts to meet growth targets, especially given the Eurozone’s expected slowdown.
Public finances show a slight surplus or deficit scenario, with the Ministry of Finance aiming to reduce public debt without compromising service quality. The projections for Portugal’s public debt show a declining trend, with estimates varying between 93.3% (Ministry of Finance) and 86.5% (Bank of Portugal). The government’s fiscal stance remains cautious, emphasizing the importance of stable economic growth, while global risks and internal factors like political instability in the EU countries are central concerns for the country’s economic outlook in 2025.
Read more from our source here.
2. Major Deals in 2025 That Could Give a New Boost to Portuguese M&A
Portugal’s M&A market in 2025 is expected to experience “moderate optimism” after a disappointing year. While far from the transaction records of 2021-2022, key deals are set to dominate, especially in banking and aviation. The sale of TAP, already underway, is a major deal, with over 12 expressions of interest from national and international players. The government’s plan is to privatize TAP in 2025, and Air France-KLM has reaffirmed interest. In parallel, Novobanco’s early exit from its Contingent Capital Agreement (CCA) is opening doors for an IPO or sale, which is expected to be a focal point for M&A activity in the country.
Investment forecasts show global M&A activity could reach 4 trillion dollars in 2025, driven by a favorable environment of lower regulation and taxes. The biggest M&A drivers next year will be strategic growth and adding new business capabilities. Key sectors such as real estate, healthcare, infrastructure, and retail are expected to see continued activity, particularly in the hotel and retail markets. M&A is anticipated to be spurred by stable political conditions and growing alignment between buyers and sellers, with a focus on industries like renewable energy, technology, and defense.
The Portuguese government is also evaluating state-owned companies for potential privatization, including Caixa Geral de Depósitos, Águas de Portugal, RTP, and Companhia das Lezírias. However, state-owned firms like these are excluded from the current sale assessments. Additionally, other notable transactions in 2025 include the acquisition of Spanish company Cacesa by CTT for 104 million euros and Luz Saúde’s planned deal with C2 MedCapital for more healthcare units. These developments indicate that, despite a challenging global landscape, Portugal’s M&A market remains poised for growth.
Read more from our source here.
3. Price Hikes Will Continue in 2025: What Will Get More Expensive?
In 2025, rising prices will impact several sectors, from food to utilities. Dairy products like milk, cheese, butter, and cream will see price increases due to supply and demand dynamics. Bread will also rise, as producers face higher costs, with a 5% increase expected. Codfish prices will soar, driven by the ongoing effects of the war in Ukraine and reduced fishing quotas. Additionally, coffee prices will climb, influenced by climate conditions in Brazil and Vietnam, as well as new EU deforestation regulations.
Housing costs will also see a change, with rent increases of up to 2.16% allowed starting January 1st, though if rents haven’t been updated in three years, they could rise by as much as 11.1%. Toll prices will increase by 2.21%, with key routes like Lisbon-Porto and Lisbon-Algarve seeing notable hikes. Public transport fares will also go up, with occasional tickets rising by 2.02%, while monthly passes remain frozen. Telecommunication rates will increase for Meo users but stay the same for Nos customers.
Meanwhile, essential utilities will rise, with water and waste management costs up by as much as 11.4% depending on the provider. The price of electricity is expected to drop, with a 7% reduction for EDP customers. However, gas prices will continue to rise due to increased costs passed onto consumers. Medication prices for drugs under €16 will rise by 2.6%, continuing a trend to offset lower-cost medicine shortages.
Read more from our source here.
4. Parques de Sintra Plans to Invest 30 Million
Parques de Sintra expects to exceed 45 million euros in revenue in 2024, a 30% increase over 2023. As such, the company plans to invest 30 million in the natural and built heritage sites it manages, including the National Palaces of Pena and Sintra, Sintra’s UNESCO-listed monuments. Note that this is funded by ticket sales, stores, cafeterias, event rentals, as Parques de Sintra doesn’t rely on the state budget.
Between January and November 2024, Parques de Sintra increased its revenues by 29%, with a goal of reinvesting in heritage preservation. The new pricing structure, defined in 2024, came to include a 15% discount for advance ticket purchases with date reservation. This strategy helped manage visitor flow and reduce pressure at sites like the Palácio da Pena, limiting daily visitors to 5,100 across 17 time slots.
Additionally, residents of Portugal now benefit from free entry to monuments about 60 days per year. The digital transformation has optimized operations, boosting efficiency and new revenue sources. Over the last decade, Parques de Sintra has had 25 million visitors and invested 40 million euros in restoration and maintenance.
Read more from our source here.
5. Social Security Assures That it is Possible to Hire Immigrants, Even Without a NISS
Social Security clarified that companies can sign work contracts with immigrants even if they have not been assigned a Social Security Identification Number (NISS). The essential element for assigning a NISS to a foreign citizen is the work contract itself, and it is not necessary for the NISS to be included in the contract. Employers do not need to wait for the worker to have a NISS before finalizing the contract.
Once the NISS is assigned, employers must report the employment relationship through the Social Security Direct platform and regularize their contribution obligations, paying any overdue contributions. Regularizing the situation is crucial to ensuring access to social security rights and benefits, contributing to both worker protection and system sustainability.
This clarification addresses ongoing issues in Portugal regarding immigration and the labor market. With a shortage of domestic workers, companies have increasingly turned to immigrants, but confusion remains about documentation. Many immigrants had previously struggled with documentation due to the NISS requirement, which, without residence authorization, prevented the validity of work contracts.
Read more from our source here.
6. Lack of Regulation Prevents Bank of Portugal from Evaluating Crypto Asset Service Requests
The Bank of Portugal announced that it is no longer authorized to receive and assess applications for crypto asset services due to the absence of a national regulation to implement the MiCA Regulation. This regulation, which came into effect at the end of 2024, requires authorization from a designated authority for crypto asset services within the European Union. Without the national regulation, the Bank of Portugal is unable to act as the competent authority for granting these authorizations.
The Bank also warns that, until the national regulation is published, the competent authorities for the authorization and supervision of crypto asset service providers remain undefined, along with the application of the transitional regime. The lack of this regulation leaves critical aspects of the crypto assets framework unresolved.
However, entities already registered with the Bank of Portugal, and authorized to provide virtual asset services, can continue operations during the transitional period, as long as they comply with national laws. These entities are allowed to carry out their activities, but those who have not yet started are prohibited from doing so under the transitional regime. Only one entity currently falls into this category.
Read more from our source here.
7. What Will the New Ocean Campus Look Like?
The plan for the Campus do Mar involves the requalification of the riverfront between Pedrouços and Cruz Quebrada, passing through Algés and Dafundo, to create a vibrant area combining research, business, and public space. This ambitious project, first proposed in 2017, aims to transform a ghost land into a dynamic hub, with private and public investment totaling 300 million euros. The goal is to establish a new centrality for Greater Lisbon, including research centers, a marina, housing, and requalified public spaces. Architect João Pedro Falcão de Campos emphasizes that the design should avoid the construction of isolated buildings, instead creating a unified structure, with an internal avenue and a reconfigured coastal road for more pedestrian-friendly spaces.
The vision includes a blue economy hub, with proximity to the Champalimaud Foundation and a focus on neuroscience, AI, and climate change impacts. At the same time, the plan includes space for fishermen and business “unicorns of the sea”, which is in line with Lisbon’s goal of becoming a business center focused on the sea and blue economy. Despite challenges, including financial doubts and environmental concerns about flood risks, Falcão de Campos remains confident that the project will move forward. He envisions a balance between economic growth, sustainability, and ecological responsibility, respecting flood protection standards and creating permeable spaces.
Falcão de Campos warns against the area becoming just a tourist destination. He stresses the need for diverse uses and investments in public transport to ensure the space is not overloaded and remains sustainable. The proposed requalification includes a leveled land between the Algés and Jamor rivers, with a focus on creating spaces for living, working, and leisure. The project also aims to avoid overburdening the site and ensuring it retains its unique identity, balancing urban development and natural preservation.
Read more from our source here.
8. Coimbra Railway Station to Close After 160 Years
On January 12, the Coimbra-A railway station will close after 160 years, as confirmed by Metro Mondego. The station, which has been a key hub for nearly 50 daily trains traveling just three minutes along the Mondego river to Coimbra B, will cease operations as part of the transition to the Mondego Mobility System. This new system, which will connect the city center to the hospital and the Lousã branch to Serpins, will replace the current railway link, marking the end of an era for the riverside railway connection.
Despite efforts by advocates of the “new station,” including the Civic Movement for the New Station, the closure remains set for January 12. Luís Neto, head of the movement, criticized the lack of response from infrastructure ministers, as well as the decision not to take the matter to the plenary for debate in Parliament. While there was some discussion at the municipal level, no significant support materialized to prevent the closure, leaving only the transition to alternative transport solutions.
Metro Mondego confirmed that a free bus service will temporarily connect Coimbra’s two stations, ensuring smooth passenger transitions until the full launch of the metrobus system. This new system, offering more than 50 daily departures and a frequency of up to 12 buses per hour, is expected to start by the end of the year. Prime Minister António Costa has stated that the metrobus solution will better serve the region, with more frequent transport and a system that integrates smoothly into Coimbra’s urban fabric, linking the city to nearby municipalities.
Read more from our source here.
9. People Under 25 Will Pay Half Price at Specific Theaters in Lisbon and Porto
With the arrival of the new year, young people will have a 50% discount on tickets for performances at theaters in Lisbon and Porto. The age limit to benefit from the measure, which came into effect on Wednesday, January 1st, is 25 years.
The “Acesso Teatro 50%” measure includes the artistic programs of the National Theatre of São Carlos and the National Theatre D. Maria II, both of which, being closed for renovation, are presenting performances outside their venues in Lisbon and other parts of the country, as well as the Camões Theatre, home of the National Ballet Company (CNB). In Porto, the measure extends to the National Theatre São João.
Approved by the Council of Ministers in October 2024, the “Acesso Teatro 50%” measure aims to “stimulate and facilitate access to the programs and cultural goods of the State,” similar to the measure offering 52 days of free access to museums, monuments, and palaces, as stated in a press release from the Ministry of Culture.
Read more from our source here.
10. On Epiphany, We Will Hear Janeiras Songs in Downtown Lisbon
On Monday, January 6th, the streets and shops of Baixa and Chiado will once again be filled with music with the return of the traditional Janeiras songs. This event, promoted by the Baixa Pombalina Revitalization Association (ADBP), aims to celebrate Epiphany and will feature the Beira Serra Singing Group and the Original Bandalheira Band, who will perform traditional religious songs.
The musical procession will begin at 10:30 AM and continue until 6:00 PM. During this time, the participating groups will visit various shops that have joined the initiative, with performances that promise to liven up the local commerce. Additionally, there will be a symbolic reenactment of the arrival of the three wise men: Baltazar, Gaspar, and Belchior.
“We believe that initiatives like these are essential to give visibility to local commerce and strengthen its role in promoting culture and preserving Portuguese traditions,” said the president of ADBP, Manuel Lopes. “The Christmas season celebration in downtown Lisbon has already become a staple on the city’s festival calendar, and we are determined to innovate and bring even more ambitious proposals in the coming years,” he added in the same note.
Read more from our source here.
