The Prime Minister, Luís Montenegro, has convened an extraordinary meeting of the Council of Ministers for this Thursday to approve support measures for populations affected by forest fires. What is the economic impact of these fires?
The Government has announced that the Executive meeting will take place in the afternoon in Viseu, one of the districts hit by fires in recent weeks.
The Notícias ao Minuto has sought further information on the support from the Ministry of Economy, but has yet to receive a response.
The Economic Impact of the Fires
The recent fires’ economic impact is “profound” and could reach up to 2.3 billion euros, explained Carlos Brito, President of the Northern Regional Board of the Order of Economists, considering the burnt area up to that day—currently even larger.
“The forest fires of 2025 are proving to be among the most severe in recent decades in Portugal. To date (11:30 a.m. on 19/08/2025), over 200,000 hectares have burned, an area nearly 50% larger than in the entire year of 2024. The economic impact is profound and could be estimated at about 2.3 billion euros so far,” stated Carlos Brito.
Portugal has been affected by numerous rural fires leading to a “profound” economic impact, potentially reaching 2.3 billion euros, stated Carlos Brito, President of the Northern Regional Board of the Order of Economists, to Notícias ao Minuto.
The economist noted that “there are immediate direct costs of combat – mobilizing aerial, land, and human resources – which amount to tens of millions of euros, possibly approaching the values of 2017, the year of significant fires responsible for 127 deaths.” However, “the losses of homes, natural resources, forest enterprises, and local infrastructure add up, and the damage is not yet fully quantified.”
There are also significant indirect effects: “Rural and nature tourism suffer cancellations and demand declines, representing losses that could reach tens of millions of euros.”
“The same applies to agriculture and the local economy, hit by land destruction and consequent devaluation, impacts that will be felt in the coming years.” Additional costs include “social and health expenses ranging from respiratory hospitalizations to the psychological impact on evacuated communities.”
The economist further emphasizes “losses without a price: in human lives and the sorrow of populations witnessing the burning of a lifetime of efforts and sacrifices. Not to mention the cost associated with losing confidence in authorities, starting with governmental ones.”
This year, the fires have already resulted in at least two deaths, including a firefighter, and several injuries, most non-serious, and have completely or partially destroyed primary and secondary homes, as well as agricultural and livestock holdings and forest areas.
Portugal has been affected by numerous large-scale rural fires since July, particularly in the North and Central regions, which have caused three deaths, including a firefighter, and several injuries, some serious, and have completely or partially destroyed primary and secondary homes, as well as agricultural and livestock holdings and forest areas.
