Purchasing power in Portugal among the lowest in the EU

The purchasing power of families in Portugal is among the lowest in the European Union. This is the conclusion of a study by Pordata, which presents a portrait of Portugal within the European Union based on four key themes: population, economy, cost of living and income, energy, and environment.

This Pordata portrait reveals that Portugal leads in the increase in housing prices, has one of the most aged populations, and was the country that led in welcoming foreigners. On the other hand, the country had the sixth-highest GDP growth this decade and is among the leaders in renewable energy production.

Forty years after joining the European Union, data from Pordata shows that although Portugal has a cost of living below the European average, the purchasing power of Portuguese families is one of the lowest in the EU.

In terms of cost of living and income, the data shows that Portugal has a cost of living below the European average; however, the average purchasing power of Portuguese families is also one of the lowest in the EU.

Between 2020 and 2024, Pordata highlights that Greece and Portugal registered the largest increases in housing costs, while Finland showed the largest reduction in prices.

GDP: Portugal had the sixth largest increase in the EU this decade

At the economic level, between 2020 and 2024, Portugal’s GDP per capita registered a 40% growth in nominal value, the sixth largest increase in the EU, according to the statistical entity.

The country where labour is most productive is Ireland, where on average each worker contributed €194,400 to the 2024 GDP. In Portugal, this value decreased to €47,700, the 19th lowest in the EU.

In 2024, only six countries had a budget surplus, Portugal being one of them, with a positive budget balance equivalent to 0.7% of GDP, ranking 6th, behind Denmark, Cyprus, Ireland, Greece and Luxembourg.

The decline in public debt relative to GDP has improved in Portugal, having reduced to 94.9% of GDP in 2024. Data shows that only five EU countries had public debt exceeding GDP in 2024: Greece, Italy, France, Belgium, and Spain. Estonia had the lowest debt.

Source: Pordata; Image: Pordata