LISBON, March 7 (Xinhua) -- U.S. credit rating agency Fitch Ratings kept Portugal's sovereign credit rating unchanged at "A" but revised its outlook from stable to positive, citing expectations of a steady decline in public debt and prudent fiscal policy.
According to a Fitch statement issued on Friday, Portugal's economy is expected to grow by about 2 percent this year and slow to 1.8 percent in 2027. Consumption and investment are projected to support growth, while net exports may weigh on activity due to tariff-related risks.
Fitch estimates the south European country posted a fiscal surplus of 0.4 percent of gross domestic product (GDP) in 2025, supported by higher-than-expected tax revenues. For this year, however, the agency expects a return to a deficit of 0.8 percent of GDP due to spending related to storms and reconstruction.
Uncertainty over the scale of such spending introduces additional risks to public finances, Fitch said. The agency expects the deficit to narrow to about 0.5 percent of GDP in 2027. ■