Algarve Drives Portugal’s Economic Growth in 2022
Algarve, Madeira, and the Lisbon Metropolitan Area regions are the main drivers of Portugal’s growth in Gross Domestic Product (GDP) for 2022, the National Statistics Institute (INE) has revealed.
According to the INE report, the country experienced an overall real GDP increase of 6.8 per cent, with these three regions surpassing the national average due to substantial growth in commerce, transport, accommodation, and restaurants, SchengenVisaInfo.com reports.
INE’s Regional Accounts show that the Algarve region achieved a growth of 17 percentage points, while Madeira followed closely with 14.2 per cent, and the Lisbon Metropolitan Area’s rates were 8.2 percentage points higher.
The Algarve (17 per cent), the autonomous region of Madeira (14.2 per cent) and the Metropolitan Area of Lisbon (8.2 per cent) performed better than the country average”, while it is estimated that the Azores (6.8 per cent) performed identically to the national figure, and the North (5.6 per cent), Alentejo (4.7 per cent) and Center (3.8 per cent) showed “more moderate growth.
The report also revealed that regions showing more modest performances in 2022 had experienced lesser impacts from the COVID-19 pandemic in the preceding years. On the other hand, areas experiencing intense growth in 2022 had dealt with stronger impacts during the pandemic.
Estimates further show that the nominal GDP of all regions has surpassed pre-pandemic levels, with a countrywide average variation of 13 per cent. More specifically, the autonomous region of Madeira showcased a 17.4 per cent increase compared to 2019, exceeding the national average. Overall, the country’s GDP recorded a growth of 12.2 percentage points.
The Algarve region, Madeira, and the Lisbon Metropolitan Area demonstrated resilience and recovery, recording growth rates of 21.3, 19.8 and 14.1 per cent, respectively. The Azores recorded a 12 per cent increase, while the North and Alentejo regions’ GDP was up by 10.4 per cent, mirroring each other closely. The Center region, slightly trailing behind, experienced a growth of 9.1 per cent.
INE also pointed out that the gross added value (GVA) in sectors such as commerce, transport, accommodation and restaurants, and services provided to companies in these three regions played a pivotal role. These sectors, integral to the productive structure of these regions, significantly contributed to their economic recovery.
In conclusion, Portugal’s economic growth in 2022 experienced an increase, with key regions such as the Algarve, Madeira, and the Lisbon Metropolitan Area’s robust growth in vital sectors accelerating the nation’s economic recovery.
