Portugal among EU’s top five budget surpluses in 2025
In 2025, Portugal joined the select group of five European Union countries with a surplus, posting a balance of 0.7% in a year when most Member States were in deficit.
Portugal was among the five European Union (EU) countries with the largest budget surpluses in 2025, highlighting the strength of its public finances at a time when most member states remain in deficit.
The country recorded a surplus of around 0.7% of GDP, equivalent to more than €2 billion, placing it alongside a small group of EU economies with positive fiscal balances, such as Cyprus (+3.4%), Denmark (+2.9%), Ireland (+1.8%) and Greece (+1.7%), according to Eurostat data published on Wednesday.
This performance keeps Portugal in the “top 5” of the bloc, consolidating a trend of improving budget outcomes in recent years: following a deficit of 0.3% of GDP in 2022, it recorded surpluses of 1.1% in 2023, 0.6% in 2024 and now 0.7% in 2025.
The result reflects a combination of steady revenue growth and controlled spending, allowing Portugal to outperform several larger economies that still face structural fiscal imbalances. In previous Eurostat data, only a handful of countries — including Greece and Latvia — posted higher surpluses in certain periods, underlining how rare positive balances remain in the euro area.
Eurostat also reports that the Portuguese economy reached a GDP of €306.765 billion in 2025, helping to ease the burden on public finances. Government revenue accounted for 43.4% of GDP, whilst expenditure stood at 42.7%, resulting in a surplus, albeit by a relatively narrow margin.
The statistical office emphasises that “public revenue and expenditure increased as a percentage of GDP in both the Eurozone and the EU”, but the Portuguese case stands out for maintaining a favourable gap between the two, unlike most of its European partners.
Alongside the surplus, Portugal continues to stand out for its reduction in the public debt-to-GDP ratio, which fell to 89.7% of GDP last year, continuing a sharp decline from the 111.2% recorded in 2022. In just three years, the country has reduced its debt burden by more than 20 percentage points.
Nevertheless, the absolute level of debt rose slightly to €275,063 million, reflecting the increase in financing requirements and the macroeconomic context. The reduction in the debt-to-GDP ratio is mainly due to GDP growth, which has helped to ease the burden of debt.
Despite the improvement, Portugal remains above the 60% threshold set by European rules, remaining in the group of countries with high debt.
Portugal’s position takes on greater significance in a European context marked by imbalances. In 2025, the average deficit in the European Union (EU) stood at 3.1% of GDP, whilst the euro area recorded 2.9%, both above or close to the reference limit.
Although the results are positive, the data suggest that Portugal’s fiscal position remains dependent on factors such as economic growth and expenditure control. The margin between revenue and expenditure remains narrow, making the surplus vulnerable to external shocks.
