Portugal · Country watch

Public Investment Drop, Contract Code Change

Portugal sees a sharp drop in public investment and a new public contracts code affecting procurement processes.

Florent Kalfon · October 10, 2026 · 12 sources

The picture Deteriorating

Business conditions in Portugal are deteriorating due to a significant drop in public investment and changes in procurement rules, alongside a widening trade deficit.

In this briefing Government of Portugal · Instituto Nacional de Estatística (Portugal) · Luís Montenegro · Ministry of Finance (Portugal)

Regulation

construction
public-sector

New Public Contracts Code in effect from October 1

a city with lots of buildings and a crane — Cormac Lee / Unsplash

A revised Public Contracts Code came into effect in Portugal on October 1, as reported by Diário As Beiras. The changes aim to address delays, cost overruns, and legal disputes commonly associated with public procurement. The updated code introduces new regulations to streamline processes and improve transparency in public sector contracts. These changes are expected to impact how public works and services are contracted in the country.

Impact Construction firms and public-sector contractors will need to adapt to new procurement rules under the revised Public Contracts Code.

Sources: Diário As Beiras ↗

Disruption

Nothing significant reported today.

Internal tension

Nothing significant reported today.

Safety & health

Nothing significant reported today.

Companies

Nothing significant reported today.

Markets

Nothing significant reported today.

Trade

logistics
retail

Portugal's trade deficit widens by €2.45 billion

Instituto Nacional de Estatística — Instituto Nacional de Estatística João Carvalho, CC BY-SA 3.0 via Wikimedia Commons

Portugal's trade deficit increased by €2.45 billion, reaching €24.424 billion as of August, according to RTP. Exports of goods rose by 2.9%, while imports grew by 5.3% compared to the same period last year. The widening deficit reflects higher import costs, which outpaced the growth in exports, impacting the country's trade balance.

Impact Importers face higher costs as the trade deficit widens by €2.45 billion, affecting logistics and retail sectors.

Sources: RTP ↗, Jornal de Negocios ↗

Politics

public-sector
finance

Public investment to drop 31% as EU funds end

Portugal's public investment is expected to decrease by 31% in 2027 due to the cessation of EU recovery funds, according to Jornal Económico. The government plans to invest €9.7 billion next year, but without the EU funds, this represents only a 6.8% increase. The Ministry of Finance anticipates that private investment will offset the decline in public spending. However, the Public Finance Council (CFP) has expressed concerns about this projection.

Impact Public-sector contractors will face reduced opportunities as public investment drops by 31% in 2027.

Sources: Jornal Económico ↗, Jornal de Negocios ↗

Also today in Portugal

AEP considera OE2027 insuficiente face aos desafios da economia — Jornal Económico
Europa no verde com queda do crude. Juros negoceiam com alívios em toda a linha na Zona Euro — Jornal de Negocios
Protestos em Bruxelas: milhares contestam políticas de austeridade e há confrontos com a polícia — Expresso
Governo "de parabéns" ou em "bolha"? Habitação e Orçamento do Estado dominam debate quinzenal — RTP
“Metem-nos no mesmo saco”: ruas de França enchem-se de estudantes em protestos marcados por queixas de violência policial — Expresso
Protesto em Bruxelas junta milhares e acaba em confrontos com a polícia — Expresso
Protestos em França. Quase sete mil jovens detidos — RTP
China e UE chegam a "entendimento". Exportações de híbridos para a Europa podem cair para metade — Jornal de Negocios

Sources in this briefing

Sources: each headline links to the original article on the publisher's site.

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