Rachel Reeves left red-faced as small EU country predicted to outperform UK economy

By Max Parry, News Reporter

Rachel Reeves delivers a code to concern leaders (Image: Getty)

In the aftermath of Rachel Reeves' Budget, the UK is acceptable to beryllium outperformed economically by Portugal, according to a report from the European Commission.

The tiny EU state, a fashionable vacation destination, is rapidly becoming a apical spot for superior investors, seeking to payment from the country's competitory taxation rates and 'Golden Visa' scheme.

Under the scheme, those investing £417,000 successful peculiar funds oregon successful a start-up employing six oregon more, tin get a 'Golden Visa' that permits state of question wrong the 29 Schengen states, a way to Portuguese citizenship aft 5 years, household inclusion, and a minimum enactment request of conscionable 7 days per twelvemonth successful Portugal.

As a result, the tiny state connected the Atlantic is projected to turn by 2.5 percent adjacent twelvemonth - acold outstripping the UK's maturation forecast.

Portugal has go a fashionable spot to put (Image: Getty)

Meanwhile, a new report connected Portugal’s attractiveness from Ernst & Young (EY), revealed 84 percent of investors, CEOs and entrepreneurs surveyed program to found oregon grow their operations successful Portugal successful the adjacent 12 months.

EY’s UK equivalent report recovered that conscionable 68 percent mean to put successful the UK and 72 percent successful the remainder of the Eurozone.

The EY study connected Portugal adds that it “presents itself arsenic an attractive, unchangeable and harmless concern destination wrong the European context”.

Paul Stannard, Chairman and Founder of Portugal Pathways, said: “This is further fuelled by continued request for the country’s fashionable Golden Visa residency-by-investment program.”

Rachel Reeves delivering a code to the CBI (Image: Getty)

Mr Stannard adds: “Portugal is 1 of the safest and astir unafraid places successful the world. It welcomes inward investment, entrepreneurs and endowment wishing to instrumentality vantage of the taxation incentives, culture, cost of living, and lifestyle. With much than 300 days of sunshine, it evidently trumps the UK for upwind and sardines.

“It besides has a beardown luxury spot market, which is successful precocious request arsenic the state continues to pull affluent buyers and investors to Portugal. According to Property Market-Index, Portugal’s existent property marketplace is acceptable to turn by 5.8% successful 2024, compared with a 2.5% diminution successful the UK.

“While different nations proceed to struggle, economically and politically, Portugal is proving a haven of stability, concern and growth.”