LISBON, May 13 (Xinhua) -- Portugal's economy recorded zero quarter-on-quarter growth in the first three months (Q1) of 2026, one of the weakest performances in the European Union (EU), as the fallout of the Middle East conflict weighed on the economy, according to data released by Eurostat on Wednesday.
The result marks a sharp slowdown from the 0.9 percent quarterly expansion recorded in the final quarter of 2025 and places Portugal as the fifth-weakest performer among EU member states with available data.
Fernando Thompson, a Lisbon-based specialist, said the economy "stalled in a worrying manner at the start of 2026," attributing the slowdown to the deteriorating fiscal balances at a time when the global crises caused by the Middle East conflict and rising energy prices demand greater prudence in public spending.
Thompson warned that Portugal risks drifting away from a successful fiscal consolidation track, cautioning that the combination of geopolitical pressures and structural vulnerabilities could weigh further on growth if left unaddressed.
