This article analyses the competitive conditions in Portugal using a new composite competitiveness indicator (ICC) that combines annual cross-country aggregated data on a set of competitiveness-related variables. The indicator uses a simple metric to measure the gap of each country comparing to the best performer on each competitiveness-related variable considered, within the set of European Union Member-States. The ICC provides a comprehensive view of the relative evolution of the Portuguese competitiveness vis-à-vis the other EU countries over the period of 1995-2020. Despite significant improvements in the last years, the levels of the indicator are similar to those observed in 1995. Portugal ranks in 21st position in the EU but records the greatest progress among this reference group, as compared to 2007. The indicator is not affected by the disturbances caused by the COVID-19 pandemic on economic data and the Portuguese competitive conditions do not seem to have been altered by this shock.