Blackout on the Iberian Peninsula may have cost the Portuguese economy 1.1 billion euros
At the end of April, a major blackout affected the entire Iberian Peninsula, including mainland Portugal. Although the event took place on April 28, the economic impacts were only estimated in May. It is said that the damage to the Portuguese economy could reach 1.1 billion euros, which is equivalent to an entire day of the country’s Gross Domestic Product (GDP).
IMF downgrades Portugal’s GDP growth to 2% in 2025
The IMF has revised down Portugal’s GDP growth forecast for 2025, now estimating 2%, down from the 2.3% previously forecast and the 2.1% estimated by the government. Despite this, Portugal remains above the eurozone average (0.8%), with the German economy stagnating. For 2026, projected growth is 1.7%. Inflation is expected to fall to 1.9% in 2025 and rise slightly to 2.1% in 2026. Unemployment is expected to remain stable at around 6.4%.
In early May Portugal exhausts natural resources available for 2025
On May 5, 2025, Portugal reached “Ecological Overload Day”, having exhausted the natural resources available for the year, 23 days earlier than in 2024. As of this date, the country is living “on environmental credit”, with a level of consumption that would require almost three planets to be sustainable.
The greatest pressure comes from the food (30%) and mobility (18%) sectors. The environmental association Zero has warned that this is the worst record in recent years and advocates urgent changes, such as: more sustainable agriculture, less meat consumption, a greater commitment to public transport and more durable products.
