Portuguese businesses are showing signs of greater confidence about the second half of 2026, with more than half expecting their domestic turnover to increase, according to a new survey by the Portuguese Business Association (AEP). However, business leaders remain cautious, with bureaucracy, high energy costs and geopolitical tensions continuing to hamper activity and investment. Expectations for international business are also improving, albeit more moderately. AEP president Luís Miguel Ribeiro said the figures should be interpreted cautiously but suggested Portuguese businesses were becoming better equipped to withstand economic shocks. Bureaucracy remains major concernWhen asked about the biggest obstacles to their businesses, respondents identified bureaucracy and energy costs among the leading problems.