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Economy

Portugal falls in global competitiveness ranking

19 JUNI 2026
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Tips Portugal
Portugal drops to 40th in the IMD competitiveness ranking, improving only in economic performance among 70 economies evaluated.
Portugal recua no ranking global de competitividade
Source: Adobe Stock
Author: Redaction

Economic performance improves

Portugal fell three positions in the IMD (International Institute for Management Development) World Competitiveness Ranking, now ranking 40th out of 70 economies. Economic performance was the only pillar showing improvement, reflecting gains in some key indicators of the Portuguese economy. However, the country lost ground in most areas analysed, highlighting structural weaknesses in Portugal’s competitiveness.
In the economic performance pillar, Portugal rose seven positions, reaching 35th place. International investment was the main driver, while the domestic economy showed a slight recovery. However, international trade declined, showing uneven performance within this indicator.

Business efficiency and government efficiency decline

In business efficiency, Portugal fell to 45th place, affected by weaknesses in management, productivity and the labour market. Challenges also remain in company scale, entrepreneurship and training, limiting Portugal’s competitiveness in the medium term.
Government efficiency also recorded a significant decline, to 41st place. Despite slight improvements in fiscal policy, the institutional and regulatory framework continues to be seen as unpredictable, constraining investment and business growth in Portugal.

Infrastructure and overall position of Portugal

Portugal’s best performance remains in the infrastructure pillar, where it now ranks 31st, despite a drop compared to the previous year. Education and technological infrastructure remain the strongest areas within this indicator, supporting part of Portugal’s competitiveness. However, the decline across the main pillars highlights a persistent challenge: transforming resources and talent into higher productivity and innovation. The IMD competitiveness ranking underlines the need for more stable policies and a more efficient economic environment to improve Portugal’s global position.
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