Two in Three Report Significant Drop in Purchasing Power
A new survey reveals that 68% of residents in Portugal report a significant decline in purchasing power over the past year, driven by rising costs for electricity, gas, and vehicle fuel. Portugal ranks as the seventh European Union country where citizens feel the rising cost of living most acutely. Projections from the European Commission also indicate that Portuguese workers face longer working lives than the EU average as the statutory retirement age continues to rise with life expectancy.
The European Commission is the EU’s executive body based in Brussels that proposes legislation, enforces EU rules and manages day‑to‑day EU policies; it is led by a President, currently Ursula von der Leyen. Commission proposals on harmonising business rules or introducing preferences can directly affect trade, regulation and competitiveness for companies and residents across all member states, including Portugal.
In 2023, the average annual income in Portugal could buy roughly 11 baskets of essential goods, compared with about 24 baskets for the average income in Luxembourg. That places Portugal well below wealthier EU countries and the EU average in real purchasing power, so residents and newcomers should expect lower real incomes than people in countries like Luxembourg, Germany or France and budget accordingly.
