The agency points to a consistent commitment to fiscal prudence as the primary catalyst for this shift. Portugal’s debt-to-GDP ratio is projected to drop to 87% this year, down from 89.7% in 2023, with further declines to 82.9% anticipated by 2028. This performance bolsters the economy’s resilience against external shocks, providing a buffer that remains stronger than that of most peer nations.

Beyond the reduction in total debt, the government expects to maintain a general surplus throughout the current year. Looking further ahead to the 2027-2028 window, Portugal is forecast to sustain a comparatively light average budget deficit. With the outlook now set to stable, the agency signals confidence that the current trajectory of balanced public finances will hold.