#EditorialFomento: Portugal on the Rise — Is It Sugar or the Economy?

When the Pastel de Nata was created in Lisbon in the 18th century, it would have been hard to imagine that this sweet, which became a national symbol and is now found in many countries around the world thanks to the Portuguese drive to continue exploring the global business landscape, would be featured in such an important article for Portugal three centuries later.

As sweet as a Pastel de Nata was how the renowned economic magazine The Economist described the Portuguese economy, ranking it as the best-performing economy in 2025, at the top of a list compiling economic data from the world’s 36 richest countries.

Strong GDP growth above the European average, controlled inflation, and a dynamic stock market enabled Portugal to overtake countries such as Spain—the leader of the ranking in 2024—while Ireland placed second and Israel third. The article points to tourism as one of the drivers, thanks to the growing number of foreigners with purchasing power who have moved to Portugal, attracted by more favorable tax conditions.

Without diminishing the importance of the tourism sector, it is worth emphasizing that there is more to Portugal than tourism. Portugal’s nata also lies in the companies that invest, the business leaders who help move the country forward, and the entrepreneurs who take risks even when clouds gather on the horizon. It is found in projects that impact the real economy, in challenges that are overcome, and in the determination to place Portugal at the top of the world. And this is achieved through companies. It is through them that we become a more competitive and productive country—creating wealth and economic growth, jobs and skilled professionals, innovating and modernizing, exporting and attracting investment to our country.

Those who believe that companies are merely economic agents are mistaken. They are far more than that: they are structural pillars that sustain development, social well-being, and competitiveness in Portugal. It is for them that we at Banco Português de Fomento work every day, aware that resilience is also a national symbol in a country that, just over 10 years ago, was under intervention by the Troika following a deep crisis—and emerged from it also thanks to the determination and drive of our business community.

For all these reasons, it is worth celebrating this international recognition, knowing in advance that not everything is sweet in this pastel de nata and that there is still much to be done to maintain this economic mood. We have not done everything yet.

The praise from The Economist is flattering and brings pride. But like any good sweet, true sweetness does not lie only in the outer crust—it lies in the filling, in well-made pastry, in quality ingredients. If the filling is weak or the dough poorly rolled, the pastry falls apart.

Portugal can today savor a pastel de nata, but it is in the hands of all of us—civil society, citizens, politicians, and business leaders—to ensure that the filling strengthens, the pastry remains consistent, and the flavor lasts beyond the moment. Only then will this "sweet” be worth it in the future.

Now that we have all enjoyed a good pastel de nata and a coffee, let’s get to work to turn this momentum into a sustainable path.