Between good foundations and deep blockages: the portrait of Portugal’s competitiveness
Having good infrastructure, a relatively qualified population and openness to international trade is no longer enough to guarantee prosperity. The most recent “International Competitiveness Ranking 2025”, from IMD, in Switzerland, clearly shows this paradox: Portugal remains in the lower half of the table, occupying 37th place among 69 countries — a slight drop (one position) compared to the previous year. This is not an abrupt drop, but another sign of stagnation in an increasingly competitive global context.
Analysis of the various dimensions of the index reveals clearly uneven performance. Portugal is best ranked in Basic Infrastructure, Education and International Trade, with positions between 16th and 22nd place. These results indicate that the country has solid foundations to innovate — in terms of infrastructure and human capital — and to internationalize, even if it is not always able to translate this potential into effective economic dynamism.
On the weaknesses side, the scenario is much more worrying. Portugal presents very weak performances in essential dimensions to attract investment and promote productivity. The country ranks worst in Fiscal Policy, Domestic Economy, Productivity and Efficiency, Management Practices, Financial Efficiency and Labor, always appearing between 43rd and 56th place. These results reflect an uncompetitive fiscal framework, an undynamic internal market, difficulties in mobilizing capital, management practices below international boundaries and a job market that does not maximize available talent.
In summary, the IMD’s portrait is that of a country with some good foundations, but with profound obstacles in the functioning of the economy and in the context in which companies generate value. Portugal’s competitiveness increasingly depends on the ability to remove these structural blockages. Without reforms that make the economic environment more predictable, efficient and favorable to private initiative, the existing potential will be difficult to transform into sustainable economic growth and a lasting improvement in well-being.
- The facts seen through the magnifying glass by André Pinção Lucas e Juliano Ventura – A partnership between POSTAL and the Institute
Also read:
