BFF Banking Group forecasts 2.3% growth for Portugal, above European average

The BFF Banking Group, in collaboration with Nova SBE, projects Portugal's economy to grow by 2.3% in 2026, outperforming its own previous forecasts and the European average. While the report highlights record-low unemployment of 5.3% and growth in mortgage lending, it notes rising labor costs due to staff shortages and a 1.9% decline in fixed capital investment as the PRR program concludes.