Portugal’s Public Debt Ratio falls to 16-year low

Portugal’s Public Debt Ratio falls to 16-year low - Portugal Business News

News Economy Europe - Portugal’s Public Debt Ratio falls to 16-year low, according to an announcement by the Government of Portugal dated February 19th, 2026. Here is the data for Portugal’s public debt ratio in 2025 and the forecast for 2026:

1 - Here is the Data for Portugal’s public debt ratio in 2025:

Portugal recorded a historic reduction in its public debt ratio in 2025, which fell to 89.7% of Gross Domestic Product (GDP), exceeding the target of 90.2% set in the State Budget for 2025.

The 3.9 percentage point decrease compared to the end of 2024 places Portugal’s debt burden below the 90% mark for the first time since 2009, consolidating a sustained trajectory of debt reduction.

According to Portugal’s Minister of State and Finance, Joaquim Miranda Sarmento, this decrease "is the result of the work of families and businesses in recent years," noting that, despite this achievement, this work of reducing the Portugal’s debt "cannot be interrupted, and it is necessary to maintain a pace of reduction in public debt."

Portugal’s Minister of State and Finance, Joaquim Miranda Sarmento, further added that, simultaneously, "we must drastically reduce bureaucracy, which stifles businesses and citizens and limits and delays private investment, especially Foreign Direct Investment," which will have "a strong effect” on Portugal’s potential GDP.

2 - What is Portugal’s public debt ratio forecast for 2026?

Portugal’s public debt ratio forecast for 2026 projects a further decrease in the public debt ratio by almost two percentage points to 87.8%, reinforcing the Government's commitment to the sustainable consolidation of public finances.