Non-compete and related clauses are fairly common in Portugal. According to employers, between 24% and 32% of private-sector employees are currently bound by a non-compete clause compared to an average of 20% to 30% across the OECD countries covered by the survey. Results from the employee survey confirm a high prevalence: 12% of workers report being bound by a non-compete clause, with an additional 15% who believe they “probably” are, compared to an average of 15% and 21% across the OECD countries covered by the survey. The lower incidence among employees suggests more limited awareness among workers as well as greater uncertainty.
Portugal Economic Snapshot
This snapshot offers an overview of Portugal's economic trends and prospects, including GDP and inflation projections, growth prospects, and structural reform priorities, drawing from the OECD Economic Survey, Economic Outlook, and Foundations for Growth and Competitiveness reports.
Key links
Key findings on non-compete and related clauses for Portugal, July 2026
Non-compete and related clauses are fairly common and their use is rising
Economic Outlook: GDP and inflation projections, June 2026
Real GDP growth is projected to reach 1.8% in 2026 and 1.7% in 2027. Higher energy prices will feed through the economy and inflation will peak at 3.2% in 2026. Strong disbursements of RRP funds, the tight labour market, permanent tax cuts and temporary fiscal support will cushion the impact of energy prices and severe storms on domestic demand in 2026. Export growth will increase progressively with external demand throughout 2027. An incomplete implementation of RRP funded projects or prolonged disruptions to energy markets could dampen the outlook.
Fiscal policy will help to cushion the external shock in 2026, before tightening in 2027. This reflects the phase-out of temporary measures introduced in response to higher energy prices and severe storms, and the expiry of RRP funding. Public debt will continue to decline, but ensuring a sustained downward path in the medium term will require more efficient spending. Expanding access to training and limiting early retirement options would raise employment among older workers, while the effective use of spending reviews would help to rebalancing expenditures towards investment.
Perspectivas Económicas de la OCDE em português, Junho de 2026
O crescimento real do PIB deverá atingir 1,8 % em 2026 e 1,7 % em 2027. O aumento dos preços da energia terá repercussões em toda a economia, e a inflação atingirá um pico de 3,2 % em 2026. Os elevados desembolsos dos fundos do PRR, as condições restritivas do mercado de trabalho, as reduções permanentes de impostos e o apoio orçamental temporário permitirão mitigar o impacto dos preços da energia e das tempestades violentas sobre a procura interna em 2026. O crescimento das exportações irá aumentar progressivamente, acompanhando a procura externa, ao longo de 2027. Uma execução incompleta dos fundos do PRR ou a persistência de perturbações nos mercados da energia poderão comprometer as perspetivas.
A política orçamental ajudará a amortecer o choque externo em 2026, antes de se tornar mais restritiva em 2027, tendo em conta a eliminação gradual das medidas temporárias adotadas em resposta ao aumento dos preços da energia e às tempestades violentas, bem como a cessação dos financiamentos ao abrigo do PRR. A dívida pública continuará a diminuir, mas, para garantir uma trajetória descendente sustentada a médio prazo, será necessária uma maior eficiência da despesa pública. O alargamento do acesso à formação e a limitação das opções de reforma antecipada aumentariam o emprego dos trabalhadores mais velhos, enquanto a utilização eficaz das análises da despesa pública permitiria redirecionar as despesas para o investimento.
Foundations for Growth and Competitiveness, April 2026
Portugal’s economic performance continues to lag most advanced OECD economies. While the gap in the investment rate has decreased, weak long-term productivity growth has led to a persistent gap in output per hour worked. The sizeable shortfall in GDP per capita also reflects Portugal’s relative labour market underperformance. Despite an historically low unemployment rate, employment rates remain relatively weak for the youth and still have room for improvement for women and older workers.
Ongoing structural changes, slow productivity growth and an ageing population require an adaptable economy, safeguarding competitiveness and fiscal sustainability by promoting sustained productivity and employment gains. Reducing regulatory barriers to competition would facilitate the entry and growth of innovative start-ups. Improving training and childcare services and strengthening work incentives for older workers and the long-term unemployed, would allow for longer working lives and ease skill shortages.
Economic Survey of Portugal, January 2026
Portugal’s economy has been outpacing the euro area average since 2022. The unemployment rate has declined, while public debt relative to GDP fell significantly. Rising disbursements of the Recovery and Resilience Funds in 2026, continuous employment gains, and recent structural reforms are all expected to support growth. However, significant challenges lie ahead. Sustaining primary surpluses and preserving public investment are essential to maintain the debt-to-GDP ratio on a firmly declining path. This requires shifting the structure of public spending towards investment, reducing spending pressures from population ageing, and reducing inefficient tax expenditures. Strengthened vocational education and training, as well as better training support for older workers, are needed to fully mobilise the working-age population, ease labour shortages and strengthen skills. Boosting competition in services sectors and maintaining investment would raise labour productivity and support sustainable gains in living standards. More consistent pricing of carbon across the economy and broader insurance coverage for natural risks would make growth more sustainable and support adaptation to a warming climate. Improving housing affordability requires structural reforms to streamline permitting procedures and spatial planning, improve efficiency and equity of property taxes, and strengthen targeted housing support for vulnerable households.
SPECIAL FEATURE: PROMOTING SUSTAINABLE AND INCLUSIVE HOUSING
