In an increasingly volatile global economic landscape, Portugal is quietly emerging as a standout performer and one of the world’s most influential asset managers is taking notice. BlackRock, the largest asset manager globally, has reaffirmed its confidence in Portugal, citing a rare and valuable combination: economic stability, manageable inflation, and tangible long-term growth potential.

While political unrest in Washington, ongoing tensions in the Middle East, and geopolitical uncertainty across Europe have reshaped the rules of global investing, BlackRock sees the current climate not as a crisis, but as a continuation of a larger transformation. “This is the evolution of a new regime that has been unfolding for years,” noted the firm in its Mid-Year Outlook.

Unlike many who retreat in the face of ambiguity, BlackRock is leaning in. Its approach now places greater emphasis on short-term clarity and tactical positioning a reversal of traditional long-term first investment logic. In this new paradigm, peripheral European markets such as Portugal are gaining fresh appeal.

Portugal currently hosts between €5 billion and €6 billion of BlackRock’s capital still modest compared to the €80 billion invested in neighboring Spain, but the momentum is growing. According to BlackRock’s latest insights, Portugal represents “a strong contributor within the European context,” buoyed by healthy domestic demand, a well-managed inflation rate (expected to hold around 2.2% this year), and a notably low exposure to U.S. trade tariffs. Together, these factors create “an excellent mix between stability and economic potential.”

Further boosting investor confidence are recent evaluations by major credit rating agencies. Over the past few months, agencies such as Moody’s, Fitch, and S&P have upgraded or reaffirmed Portugal’s credit outlook with favorable assessments. These upgrades reflect not only improved public finances and debt management but also recognition of the country’s macroeconomic resilience. For institutional investors, such ratings serve as critical validation, signaling that Portugal is no longer just a peripheral bet but a credible, stable market.

One of the key focus areas is infrastructure, particularly renewable energy. BlackRock’s infrastructure funds have already backed projects like the Glória Solar Plant, Portugal’s first long-term merchant solar power purchase agreement (PPA), financed through its Renewable Income Europe fund. This commitment reflects the firm’s long-term belief in Portugal’s capacity to lead the clean energy transition, while also generating robust returns.

Other sectors gaining attention include industry, financial services, and utilities, the latter boosted by increased energy demand from sectors like artificial intelligence. Through its various funds, BlackRock is also one of the main institutional investors on the Lisbon Stock Exchange, holding significant stakes in some of Portugal’s largest listed companies, including over 6.8% in EDP and 3% in EDP Renováveis representing a combined investment of more than €1.4 billion.

BlackRock’s optimism about Portugal is part of a broader European strategy. The firm highlights further opportunities in defense, semiconductors, and industrials, particularly those tied to Germany’s industrial backbone. Despite the dollar’s decline against the euro this year, BlackRock maintains that the greenback’s global dominance remains unchallenged, underscoring the firm’s nuanced yet confident global outlook.

For Portugal, this renewed vote of confidence backed by sound macroeconomic indicators and external validation marks a turning point. After years on the sidelines of Europe’s economic map, the country is stepping into the spotlight not just as a destination, but as a strategic investment partner.

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes