The purchasing power in Portugal remains below the European average, despite “signs of recovery,” as outlined in a study by GfK and NielsenIQ presented on Wednesday.
“The purchasing power in Portugal stands at 16,943 euros per capita, according to the Purchasing Power Europe 2025 study by GfK/NIQ Geomarketing, which examines the purchasing power evolution in 42 European countries,” reads a statement received by Notícias ao Minuto.
However, “despite the country dropping one position to 22nd place in the ranking, the available income of the Portuguese increased by 15.7% compared to the previous year, gradually approaching the European average set at 20,291 euros.”
The result, explains the same note, “reflects a recovery in consumption and positive evolution in salaries, even though Portugal remains distant from the countries with the highest purchasing power.”
Where is purchasing power highest?
“The analysis reveals changes in the regional distribution of purchasing power in the national territory. Oeiras now leads the national ranking, with 26,863 euros per capita, surpassing Lisbon, which now ranks second with 26,161 euros. Following are Cascais (23,958€), Alcochete (23,375€), and Vila do Porto (22,046€), completing the national top five. Porto, Coimbra, and Mafra remain among the ten municipalities with the highest purchasing power, all above 20,000 euros per capita. On the opposite end, interior municipalities like Vinhais (9,406€) and Benavente (16,985€) are significantly below the national average,” the note states.
The statement also mentions that “these results occur in a context of economic stabilization in the European Union and gradual reduction of inflation rates, expected to settle at 2.3% in 2025 following 2.6% in 2024.”
Cost of living in Portugal remains high
Despite this trend, it is noted that “the cost of living in Portugal remains high, especially due to increases in housing, energy, and food, which continue to constrain the real purchasing power of families,” the statement reads.
“Despite the nominal improvement in incomes, the advance relative to the European average remains limited, reflecting the structural challenges of the Portuguese economy. The weight of essential expenses and regional asymmetry remain determinative, with a clear concentration of income in the metropolitan areas of Lisbon and Porto,” emphasizes António Salvador, general manager of GfK/NIQ in Portugal, quoted in the released statement.
And abroad?
Abroad, “at the European level, citizens have an average of 20,291 euros per capita, a nominal increase of 4% compared to the previous year, totaling 13.9 trillion euros available in purchasing power.”
“Liechtenstein (71,130€), Switzerland (53,011€), and Luxembourg (38,929€) lead the ranking, with incomes between 1.9 and 3.5 times above the European average, while Kosovo, Belarus, and Ukraine continue to record the lowest levels (with Ukraine being 15% below the European average),” the note states.
These differences, the note explains, “reflect structural factors, such as average income, energy costs, and economic productivity.”
“Nevertheless, there is a trend of gradual convergence between European economies, with the regions of Central and Eastern Europe showing above-average growth, progressively bridging the gap with the West,” it further reads.
