Portugal will maintain its efforts to balance the budget, but recent storms will affect economic objectives. Reconstruction costs are estimated at over 4 billion euros.

The Minister of Finance of Portugal, Joaquim Miranda Sarmento, stated that the country will do everything possible to maintain a balanced budget and to reduce public debt, but recent devastating storms will influence these objectives. The assessment of damages will take several weeks, and the government has launched a 2.5 billion euro package for emergency aid and reconstruction incentives. The budget surplus is projected to decrease from 0.3% of GDP in 2025 to 0.1% this year, marking the fourth consecutive year of surplus. Miranda Sarmento warned that 2026 will be a difficult year due to additional spending generated by European loans. Authorities estimate that public debt will decrease to 87.8% of GDP this year, and economic growth is projected at 2.3%.