Portugal’s Gross Domestic Product (GDP), the total value of goods and services produced, increased 0.8% in the second quarter of 2025 from the previous quarter, matching market expectations, Statistics Portugal said. The quarterly result points to steady but moderate momentum, supported by robust domestic demand and a recovering tourism sector. Annual growth was stronger, although the source did not provide a rate. Portugal’s expansion came as the broader Eurozone faced sluggish manufacturing and geopolitical uncertainty, and was described as slightly above the Eurozone average, where weakness in larger economies including Germany and France has weighed on activity. The performance supports the government’s fiscal projections and leaves room for continued investment in public services and infrastructure. It also indicates sustained consumer confidence that could support retail and services, though economists cautioned that growth remains modest compared with the post-pandemic rebound of 2022–2023. Energy-price volatility and slowing global trade remain risks for the second half of 2025. Markets showed little immediate reaction because the result was widely anticipated: the euro held steady against major currencies and Portuguese bond yields were unchanged. Analysts will assess third-quarter industrial production and employment data, while the government’s medium-term budget plan, due later this year, may clarify the direction of fiscal policy.