Challenges for companies in 2025 driven by economic uncertainty.

Economic uncertainty pointed as the biggest challenge for companies in 2025.

Portuguese to English Translation: Economic uncertainty, reduced profit margins, and high labor costs stand out as the main challenges that companies in Portugal face for the next year, according to a study released by Crédito y Caución and Iberinform, and shared by Notícias ao Minuto.

According to the Credit Risk study, "50% of the national productive fabric identifies the overall context of low economic growth as the main obstacle to business activity".

Other challenges pointed out by entrepreneurs include insufficient profit margins (38%), excessive labor costs (36%), difficulties in attracting customers (31%), increased competition (26%), and high bureaucratic burdens (25%).

Additionally, they mentioned delays in payments (22%), production costs (17%), difficulties in accessing financing (16%), and legal barriers (9%).

Impact of inflation and interest rates

The study reveals that in 2024, 96% of companies felt the impacts of inflation on their operations. Among the main consequences are: 

• Reduction of commercial margins: 69% of companies.

• Increase in labor costs: 47%  

• Higher supply costs: 46%;

• Decrease in sales: 39%;

• Higher credit risk in clients: 34%;

• Loss of customers: 11%.

Regarding the impact of interest rates:

• 36% of companies stated that they will not have an influence on access to financing.

• 15% expect a high impact;

• 21% foresee moderate impact;

• 28% point to reduced impact.

This landscape highlights the complexity of the business environment and the financial and operational challenges that will characterize the year 2025.

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