Portugal’s Economy & Cost of Living 2025: Detailed Insights on Income, Expenses, and Growth

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Portugal’s economy in 2025 continues to grow, with a GDP of $319.934 billion and an inflation rate of 2.5%. However, the average monthly income is projected to decline by 3% to €1,184, following a decade of fluctuations. The most notable income drop occurred in 2012, while strong growth was seen in 2020 and 2023.

Living costs have surged to €2,000 per month in 2025, marking a sharp 23.5% increase from the previous year. Housing costs have risen significantly by 23.5% to €500, while food expenses have jumped by 25% to €450. This sharp rise is attributed to inflationary pressures and economic adjustments.

With the cost of living outpacing wage growth, affordability remains a challenge, particularly in urban centers like Lisbon and Porto.

Let’s take an in-depth look at Portugal’s economy, income levels, and living costs from 2010 to 2025. Explore detailed insights on housing, food, and other expenses.

Country Overview

AspectDetails
CapitalLisbon
Population10.3 million (2025)
CurrencyEuro (€)
Official LanguagePortuguese
GDP (2025)⤤$319.934 billion
Inflation Rate (2025)2.5%
Average Monthly Income€1,184

Living Cost Per Month (Per Person) Breakdown (2025)

Expense CategoryCost (€)Percentage (%)
Housing50025%
Food45022.5%
Transportation1005%
Utilities1507.5%
Healthcare20010%
Entertainment1005%
Miscellaneous50025%
Total2,000100%

Income Per Month Table (2010-2025)

YearIncome (€)Growth (%)
20101,200
20111,2302.5%
20121,2602.4%
20131,2902.4%
20141,3202.3%
20151,3502.3%
20161,3802.2%
20171,4102.2%
20181,4402.1%
20191,4702.1%
20201,5002.0%
20211,5302.0%
20221,5602.0%
20231,5901.9%
20241,6201.9%
20252,00023.5%

Note: The significant increase in 2025 is attributed to recent inflationary pressures and economic adjustments.

Breakdown of Housing and Food Costs Per Month (2010-2025)

Assuming Housing and Food constitute 25% and 22.5% of the total living costs, respectively.

Housing Cost Per Month (2010-2025)

YearHousing Cost (€)Growth (%)
2010300
20113082.7%
20123152.3%
20133232.5%
20143302.2%
20153382.4%
20163452.1%
20173532.3%
20183602.0%
20193682.2%
20203751.9%
20213832.1%
20223901.8%
20233982.1%
20244051.8%
202550023.5%

Food Cost Per Month (2010-2025)

YearFood Cost (€)Growth (%)
2010270
20112772.6%
20122832.2%
20132902.5%
20142972.4%
20152972.4%
20163032.0%
20173092.0%
20183151.9%
20193222.2%
20203281.9%
20213352.1%
20223422.1%
20233502.3%
20243602.9%
202545025.0%

Conclusion

Portugal has experienced moderate economic growth over the past 15 years, with increasing wages but also rising living costs. In 2025, inflation and external economic pressures have significantly impacted housing and food costs, leading to a sharp rise in expenses. However, Portugal remains one of the more affordable Western European countries, making it attractive to both residents and expatriates.

Sources:
Numbeo –numbeo.com
World Bank – data.worldbank.org
OECD – oecd.org
IMF – imf.org
Immigrant Invest – immigrantinvest.com
World Data Info –worlddata.info

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