How is Portugal handling the current economic crisis?

In the past few weeks and months, inflation and interest rates have continued to rise around the world, rumors of widespread recession have persisted while remaining (so far) unrealized, and the crypto market has cratered alongside the FTX collapse. 

The truth is, nobody knows what is going on. For a large part, investors are waiting for things to settle down to make allocation decisions, including when it comes to real estate.

Relatively speaking, Portugal is still doing reasonably well. The country’s tourism sector has recovered to pre-pandemic levels, and economic growth is expected to beat the previous forecast and reach at least 6.7% this year. However, there are signs that exports and investments are now slowing down, and growth is expected to decelerate sharply to 1.3% in 2023.

How should the macroeconomic situation impact your plans to purchase real estate in Portugal?

There are no easy answer as it depends on your personal financial situation as well as your mid to long-term goals.

In other posts, we dig into what you should do if you are considering purchasing property to apply for a Golden Visa, and whether you should wait for prices to come down.