AGP Executive Report

Housing and Costs: Tens of thousands marched in Lisbon over soaring rents and living costs, while housing protest camps have spread across Portugal. Home prices have risen 130% since 2013, leaving the country among the EU’s least affordable. Trade Links: Portugal’s ambassador to Pakistan urged businesses to turn friendly ties into trade and investment, highlighting opportunities in renewable energy, agriculture and maritime industries; bilateral trade remains modest. Digital Infrastructure: Portugal’s data-centre capacity has grown 23% since 2024, making it the world’s 10th-fastest-growing market, though its overall footprint is still small. Business Expansion: Mercadona is recruiting for a third Algarve supermarket after opening stores in Portimão and Faro. Aviation and Food: Lufthansa has been selected to buy a 44.9% stake in TAP in a $1.3 billion deal, while Portugal’s Cerealis is in talks with France’s Panzani on a proposed €1 billion pasta group.

Aviation Costs: TAP chief executive Luis Rodrigues warned that fuel prices could stay high for three to five years, squeezing airlines as their ability to raise fares remains limited. Housing and Living Costs: Protests over rents, wages and broader living costs have spread to Portugal, with demonstrators in Lisbon and Porto coordinating calls for more affordable housing. Retail Expansion: Mercadona is hiring for a third Algarve supermarket, following its Portimão opening and plans for a Faro store. TAP Deal: Lufthansa was selected to buy a 44.9% stake in TAP for about €1.2 billion, a major step in the airline’s ownership process. China Ties: Beijing has agreed to consider Portugal’s proposal to recognize academic qualifications, potentially easing student and staff mobility between the countries.

Cost of Living: Protests over soaring rents, prices and fuel costs spread to Lisbon, with unions demanding better wages and affordable housing. CHEGA also announced an emergency housing package, including tax changes, and said it would accept the risk to the budget surplus. Retail Expansion: Mercadona opened its first Algarve supermarket in Portimão and plans another in Faro, extending its Portuguese footprint. TAP Sale: Lufthansa was selected to buy a 44.9% stake in TAP for about €1.2 billion, beating Air France-KLM; it projects $502 million in synergies from the deal. Tourism: Portugal and Montenegro led the winners at the 2026 World Travel Awards Europe, reinforcing tourism’s role in the economy.

Housing and Costs: Housing campaigners remained camped in Lisbon and Porto after protests over rents and living costs, pressing for more public housing and a halt to evictions. The unrest reflects mounting pressure on household budgets across Portugal. Retail Expansion: Mercadona opened its first Algarve supermarket in Portimão, investing more than €6.5 million and creating 100 jobs; a Faro store is due to open in November. Tourism: Portugal won 32 European World Travel Awards, including top destination honours for the country, Lisbon, Porto, Madeira and the Algarve, while TAP was also recognised. Aviation: Portugal selected Lufthansa for a €1.2 billion deal for a 44.9% stake in TAP, with further privatisation possible by 2028. Clean Energy: Galp and Siemens joined forces on a major renewable-hydrogen plant, advancing Portugal’s ambitions in low-carbon industry.

Cost of Living: Tens of thousands marched in Lisbon against rising prices, low wages and Portugal’s housing crisis; home prices have more than doubled since 2017, while rents have climbed almost as much. Green Energy: Siemens and Galp are advancing a 100-megawatt renewable hydrogen plant in Sines, due to start operations by year-end. It is expected to produce 15,000 tonnes of hydrogen a year and cut emissions by about 110,000 tonnes. Fuel Prices: Diesel is set to rise 4.5 cents a litre next week, while petrol gets slight relief. Telecoms: Vodafone Portugal is challenging an order to remove Huawei equipment, keeping a major network and regulatory dispute in play. Aviation: Lufthansa won the contest for a 44.9% stake in TAP Air Portugal, with a €1.2 billion bid — a major step in the airline’s privatisation.

Cost-of-Living Pressure: Thousands rallied in Lisbon, Porto and Coimbra over housing, fuel and grocery costs, with unions demanding higher wages and better public services. Loulé says Algarve housing shortages and rising prices have reached emergency levels. Green Industry: Siemens and Galp are developing a 100-MW renewable hydrogen plant at Sines, due to start operating by the end of 2026. It aims to produce 15,000 tonnes a year, with digital optimisation potentially cutting energy use by up to 15%. TAP Privatisation: Portugal selected Lufthansa to buy a 44.9% stake in TAP for €1.2 billion, with further privatisation possible by 2028. Economic Outlook: The IMF raised its growth forecast for Portugal to 2.1%, while diesel prices are set to rise by 4.5 cents a litre next week.

TAP Sale: Portugal has selected Lufthansa’s €1.3 billion bid for a 44.9% stake in TAP Air Portugal; the airline is also in talks over the remaining 50.1%, while unions warn staff must not be left to rescue the carrier again. Food Industry: Porto-based Cerealis is in exclusive talks to combine with France’s Panzani, creating a group with about €1 billion in annual revenue and nearly 1,800 employees. Retail: Mercadona opened its first Algarve supermarket in Portimão, drawing crowds for the launch. Household Costs: Diesel prices are set to rise 4.5 cents a litre next week, as a separate survey finds more than half of Portuguese people say their purchasing power has fallen. Growth Outlook: The IMF has raised its forecast for Portugal’s economic growth to 2.1%. Telecoms: Vodafone Portugal is challenging an order to remove Huawei equipment from its network.

Energy Costs: Diesel prices are forecast to rise 4.5 cents a litre from Monday, adding pressure on households and businesses after sharp increases in recent weeks. Retail and Mobility: Mercadona opened its first Algarve supermarket in Portimão, while Porto’s electric-vehicle show reflects growing interest in electrified transport amid high fuel costs. TAP Sale: Portugal selected Lufthansa’s €1.3 billion bid for a 44.9% stake in TAP; the airline is also discussing a possible purchase of the remaining shares. TAP’s union says workers must not be left to rescue the carrier again. Growth and Infrastructure: The IMF raised Portugal’s 2026 growth forecast to 2.1%, and construction has begun on the high-speed rail line linking Lisbon and Porto.

TAP Privatisation: Portugal selected Lufthansa to buy a 44.9% stake in TAP for €1.2 billion, with a route to possible full ownership. Lufthansa expects up to $502 million in synergies; a union warns workers must not be left to rescue the airline again. Retail Expansion: Mercadona opened its first Algarve store in Portimão, investing over €6.5 million and hiring 100 permanent staff. It is the Spanish chain’s 77th Portuguese store. Infrastructure and Energy: Construction has begun on Portugal’s first high-speed rail line, linking Lisbon and Porto. Siemens and Galp are also partnering on renewable hydrogen production. Household Economy: More than half of Portuguese respondents say their purchasing power has fallen as price pressures mount. Portugal’s trade deficit, however, narrowed in August.

TAP Privatisation: Lufthansa has won the bid for a 44.9% stake in TAP, with the deal valued at up to €1.2 billion. The government will retain control for now, while separate talks consider Lufthansa eventually buying its remaining 50.1%. Digital Infrastructure: A new EU-backed subsea cable will link Ireland with France, Spain and Portugal, landing at Carcavelos and adding a direct, high-capacity connection to mainland Europe. Household Finances: A survey found 53% of Portuguese consumers say their purchasing power has fallen over the past year; 77% are highly concerned about living costs. Industry: Portugal’s industrial output fell 2% in August, among the steepest monthly declines in the EU, as euro-area production contracted for a third consecutive month. Retail: Mercadona has opened its first Algarve store in Portimão, extending the Spanish supermarket chain’s Portuguese footprint.

TAP Privatisation: Portugal has selected Lufthansa to buy a 44.9% stake in TAP for €1.2 billion, beating Air France-KLM. The state will retain a majority, and the deal still needs European Commission approval, with completion expected by 2028. Transport Investment: Construction has begun on Portugal’s first high-speed rail line, a major infrastructure project for the country. Growth Outlook: The IMF has raised its forecast for Portugal’s economic growth to 2.1%. Clean Energy: Siemens and Galp are preparing to digitalise Galp’s 100-megawatt renewable hydrogen plant at Sines.

TAP Privatisation: Portugal has selected Lufthansa for a 44.9% stake in TAP, with the offer and related package valued at about €1.2 billion. The state will retain majority ownership, while the deal awaits EU approval. Energy and Technology: Siemens will help Galp digitalise its planned 100 MW renewable hydrogen facility, as DStelecom extends fibre to 9,500 more homes in northern Portugal by year-end. Growth and Trade: The IMF raised Portugal’s 2026 growth forecast to 2.1%, while the country’s trade deficit narrowed in August. E-Waste: Portugal collected and treated just 32% of electronic waste in 2024, well below the EU’s 65% target, drawing criticism of its waste-management system.

TAP Sale: Lufthansa is reportedly ahead of Air France-KLM in the race for a 44.9% stake in TAP, with Portugal’s cabinet expected to decide today. The sale still needs regulatory approval. Growth Outlook: The IMF raised its Portugal growth forecast to 2.1%, while August’s trade deficit narrowed. Retail Cybersecurity: Portugal was among the countries where supermarket refrigeration systems were hit in a cyberattack, highlighting risks to food retailers and supply chains. Infrastructure: Construction has begun on the high-speed rail line linking Lisbon and Porto. Energy Investment: Siemens will digitalise Galp’s planned 100MW hydrogen plant, part of Portugal’s push to develop low-carbon energy.

Cybersecurity: A French supermarket refrigeration hack spoiled food and caused fires at hundreds of stores; an analyst said Portugal was among countries also affected, though the cross-border impact remains under assessment. Defence Technology: Portuguese drone maker TEKEVER is expanding into Germany, where the Bundeswehr is evaluating its heavy-lift unmanned aircraft. Its new Munich hub will cover Germany, Austria and Switzerland. Transport and Energy: Construction has begun on the high-speed rail link between Lisbon and Porto. Separately, Siemens will digitise Galp’s planned 100MW hydrogen plant. Travel: TAP is extending flexible payment options to four more markets, while Portugal’s trade deficit narrowed in August. Business Links: Qatar’s chamber of commerce has explored ways to deepen trade and investment cooperation with Portugal.

Infrastructure: Construction has begun on the first section of Portugal’s €2 billion Lisbon–Porto high-speed line. The full route is planned to cut the journey to 1 hour 15 minutes and support links to a future Lisbon–Madrid service. Digital Business: Megaport has launched automated interconnection services in Lisbon, linking local businesses to more than 1,000 data centres worldwide. Energy Transition: Siemens will digitalise Galp’s 100MW renewable hydrogen plant in Portugal. Trade: Qatar Chamber reviewed trade and investment cooperation with Portugal; the country’s trade deficit also narrowed in August. Cybersecurity: An analyst says Portugal may be among countries affected by the cyberattack on French supermarket refrigeration systems. Danfoss said compromised controllers were outdated legacy models. Telecoms: Portugal has renewed restrictions on 5G network security.

Cross-Border Investment: Qatar Chamber and Portuguese business leaders discussed joint ventures and a possible Qatar–Portugal Business Council, with opportunities in hospitality, fintech and retail. Digital Infrastructure: Megaport has launched Lisbon network connections linking local firms to more than 1,200 data centres, cloud providers and networks. Portugal also extended restrictions on high-risk vendors in 5G networks. Energy Transition: Siemens is set to digitalise Galp’s planned 100MW hydrogen production plant in Portugal. Business Growth: Go fit reported 2025 revenue of €93.3 million and net profit above €2.6 million, and expects revenue to exceed €105 million in 2026; its expansion plans include two Portuguese facilities. Tourism Impact: A study estimates the 2025 Portuguese MotoGP generated €102 million in economic value, including €56 million in the Algarve, with foreign visitors accounting for 40% of spectators. Retail: Ikea plans to pilot a service in Portugal and Spain by year-end that lets customers sell eligible used products directly to the company.