The economic impact of recent fires in Portugal is “profound” and could already reach 2.3 billion euros, stated Carlos Brito, the President of the Northern Regional Directorate of the Order of Economists, on Tuesday.
“The forest fires of 2025 are proving to be among the most severe in decades in Portugal. So far, as of 11:30 am on August 19, 2025, over 200,000 hectares have burned, an area nearly 50% larger than that reported for all of 2024. The economic impact is profound, estimated at around 2.3 billion euros so far,” explained Carlos Brito.
Economic Toll of the Fires
The economist highlighted that “there are immediate direct costs – mobilization of aerial, land, and human resources – which amount to many tens of millions of euros, potentially approaching the figures of 2017, the year of the great fires responsible for 127 deaths.” However, “there are also losses of homes, natural resources, forest operations, and local infrastructure, whose damages are not yet fully quantified.”
Additionally, there are indirect effects, which “can be even more significant and prolonged”: “Rural and nature tourism is experiencing cancellations and drops in demand, representing losses that could reach tens of millions of euros.”
Furthermore, “the same happens with agriculture and the local economy, hit by the destruction of lands and their devaluation, an impact that will be felt over the coming years.” Also, there are “social and health costs, from respiratory hospitalizations to the psychological impact on evacuated communities.”
The economist also pointed out that there are “priceless losses: in human lives and the pain of populations watching a lifetime of efforts and sacrifices burn. Not to mention the cost associated with the loss of trust in authorities, starting with the governmental ones.”
This year, the fires have already resulted in at least two deaths, including a firefighter, and several injuries, mostly minor, destroying homes, both primary and secondary, as well as agricultural and livestock operations and forested areas.
“It is crucial to keep focusing on the essential”
Carlos Brito noted that “in recent days, there have been increasing criticisms of the lack of coordination in firefighting efforts, with reports of poorly distributed resources and late responses,” and the “Government has managed its communication strategy in a very haphazard manner, alternating between silence and confusing messages, which only increase the perception of disorganization.”
“Despite everything, at this moment, it is crucial to keep focusing on the essential: fighting the fires with all available resources and minimizing their impacts on populations, the territory, and the economy,” he concluded.
Mainland Portugal has been affected by multiple rural fires since July, particularly in the North and Center regions, amid high temperatures that prompted an alert status starting August 2.
According to provisional official data, by August 19, more than 201,000 hectares have burned in the country, surpassing the area burned throughout 2024.
