KPMG predicts Portugal will have double the growth of the Euro Zone

The Euro Zone’s economy is on track to grow 0.9% in 2025 with Portugal’s GDP growing 1.7% in the same period according to a new study from KPMG.

Despite KPMG’s forecasts of a slight recovery for the EU countries, specialists are warning that the failure of EU-US talks on tariffs could affect the development of Europe’s economy.

“The high degree of uncertainty over the course of US trade policy is creating countless potential areas of friction for trade, with the potential for advantages and disadvantages for economies”, warns the European Economic Outlook – Spring 2025 for KPMG.

According to KPMG forecasts, the Euro Zone should see a modern growth of GDP estimated at 0.9% for 2025 and 1.1% in 2026, “reflecting a scenario of a slower economy”, with countries like Spain, Poland, and Ireland benefitting from strong internal demand, strategic investments, and resilient labour markets, while economies such as Germany, France, Italy are facing structural and tax constraints that limit their growth potential.

KPMG forecasts that Portugal will continue to stand out positively with a growth forecast of 1.7% this year and 2.3% next.

However, in the blackest of scenarios, in which the EU would face tariffs of 50% from the US, the impact on GDP growth with the potential to bring it down substantially to 0.6% in Spain, but up to as much as 1.8% in Ireland.