Boom with a view: our economy of the year - The Intelligence from The Economist Recap

Podcast: The Intelligence from The Economist

Published: 2025-12-30

Duration: 22 minutes

Guests: Callum Williams, Shalesh Chitnas

Summary

Portugal tops The Economist's 2025 best performing economy ranking due to tourism and favorable economic policies, while Dalit cuisine in India remains underappreciated and London's river transport sees a resurgence.

What Happened

Portugal has been named the best performing economy of 2025, largely due to a booming tourism industry and favorable tax benefits attracting foreign talent. This marks the fourth consecutive year a Southern European country has topped the rankings, with previous winners including Spain and Greece.

Countries like Estonia, Finland, and Slovakia are at the bottom of the economic rankings, struggling with the aftermath of the 2022 energy price shock. Meanwhile, America's economy ranks in the middle, and Canada leads among G7 nations.

Inflation is a crucial factor in these rankings, with Turkey performing poorly due to persistently high rates. The report highlights concerns over zero percent inflation, as seen in Sweden, suggesting it could lead to deflationary pressures.

The episode also explores Dalit cuisine in India, often overlooked due to its association with the lower caste. Despite legal changes, societal barriers persist, affecting not only cultural acceptance but also nutritional access.

Shalesh Chitnas discusses how Dalit cuisine has historically been marginalized, though efforts are underway to bring it to the forefront through publications and greater awareness.

In London, riverboats are making a comeback as a mode of transport, echoing their historical significance. While river commutes are rising, challenges such as cost and frequency still hinder their widespread adoption compared to other transit methods.

Key Insights

• Portugal has been recognized as the best performing economy of 2025, driven by a thriving tourism sector and tax incentives that attract foreign professionals. This continues the trend of Southern European countries leading economic rankings for four consecutive years.
• Estonia, Finland, and Slovakia are struggling economically due to the lingering effects of the 2022 energy price shock, placing them at the bottom of the current economic rankings.
• Turkey's economy is underperforming in part due to persistently high inflation rates, while Sweden faces potential deflationary challenges with its zero percent inflation rate.
• Riverboats in London are experiencing a resurgence as a mode of transport, though issues related to cost and frequency limit their adoption compared to other public transit options.