In Portugal, which regions offer the highest earnings for residents?
New data released by the National Statistics Institute (INE) sheds light on the income disparities across Portugal's municipalities. The findings show a clear trend of economic concentration in certain regions and metropolitan areas.
Oeiras and Lisbon Lead the Pack
The municipalities with the highest net income per person in Portugal are Oeiras and Lisbon. Oeiras leads with an average income above €15,000 per year (€15,862), making it the only municipality with income levels above €15,000. Lisbon follows with an average income of €14,282 per year. These figures significantly exceed the national average income.
Oeiras, the Wealthiest Municipality
Oeiras is notable for its economic development and high GDP per capita, making it the wealthiest municipality in Portugal in terms of income and purchasing power. Its residents have the highest concentration of tertiary education attainment, low unemployment, and a liberal economic mindset, all contributing to its high income levels.
Lisbon, the Capital and Economic Hub
As the capital and a major economic hub, Lisbon also commands high incomes, although it remains about 10% lower than Oeiras.
National Average Income: Significant Variation
In comparison, the national average income per person is much lower and more varied across the country. The average Portuguese worker earns about €1,200 per month, which is approximately €14,400 annually, including all municipalities. Oeiras’ average income thus stands out significantly when compared to this broader national figure.
Regional Disparities
The Center region has 17 municipalities with a median net income above the national average. The West and Tagus Valley have a dozen municipalities each with a median net income above the national average. In contrast, Alto Tâmega e Barroso and Tâmega e Sousa are the regions with the lowest declared salaries, with median incomes of €9,449 and €9,819 respectively.
The Alentejo, Madeira, and the Azores
In the Alentejo, only eight municipalities have a median net income above the national average. Madeira has three municipalities with a median net income above the national average, while half of the Azores have a median net income above the national average. Faro is the only municipality in the Algarve with a median net income above the national average. The municipality on the island of Porto Santo, in the Autonomous Region of Madeira, has a median net income per capita of 13,089 euros.
The North and Greater Lisbon
The North region registers fewer municipalities above the national average than those concentrated solely in Greater Lisbon. The highest median values in the Porto Metropolitan Area are in Maia (€12,726), Porto (€12,460), and Matosinhos (€12,266). Cascais has a median income of 13,406 euros per year.
Conclusion
The data released by the INE provides a clear picture of Portugal's economic landscape. The disparities reflect economic concentration in metropolitan areas and higher living costs linked to these municipalities. The trend towards economic growth is evident, but the challenge remains to bridge the gap between the wealthier regions and the rest of the country.
The Algarve, specifically the municipality of Faro, is one region that shows a median net income above the national average, providing a counterbalance to the economic concentration seen in metropolitan areas like Oeiras and Lisbon.
The Algarve, Madeira, and the Azores, while not as economically concentrated as the North region and Greater Lisbon, have municipalities with median net incomes above the national average, contributing to a more balanced economic landscape across Portugal.
