The Gini coefficient in Portugal, a measure of income distribution inequality, stood at 35.5% in 2023, slightly lower than the 35.7% recorded in 2022, according to recent data from INE’s Local Income Statistics.
The previous year’s report also highlighted a decrease in income distribution asymmetry, with a 0.4 percentage point drop from 35.7% compared to 36.1% in 2021.
Between 2022 and 2023, 210 municipalities saw a reduction in net income inequality per person, with Lagoa in the Azores experiencing the largest decrease of 2.5 percentage points. However, this was fewer than the 239 municipalities that reported reductions between 2021 and 2022.
The 2023 data revealed that in 31 municipalities, “income inequality was higher than the national average,” with Lisbon leading at 42.6%, followed by Vila do Porto (42.5%), Porto (41.8%), and Cascais (40.2%).
Among these 31 municipalities with values exceeding the national reference, nine are in the North region (including Porto, Resende, and Vila Real), seven in the Azores (such as Vila do Porto and Ponta Delgada), four in the Algarve, four in Greater Lisbon, three in Madeira, three in the Setúbal Peninsula, and one in the Centre region (Coimbra).
Municipalities with the lowest levels of income inequality in 2023 were mostly in the interior of the Central, Western, Tejo Valley, and Alentejo regions, according to INE.
Alandroal in Alentejo and Pampilhosa da Serra in the Centre recorded the nation’s lowest Gini coefficients at 27.1%.
The Alto Tâmega and Barroso sub-region showed the smallest range in Gini coefficient among municipalities, with Boticas at 34.3% and Chaves at 36.1%. In contrast, the greatest disparities were found in Greater Lisbon, ranging from 42.6% in Lisbon to 31% in Vila Franca de Xira, and in the Porto Metropolitan Area, between Porto (41.8%) and Oliveira de Azeméis (30.4%).
