Economy, jobs and prices in Algarve, Portugal: official figures
GDP per person was 35,600 purchasing power standards (PPS) in 2024, 89% of the EU average; 2nd highest of 9 regions in Portugal. PPS adjust for price differences between countries.
How big is the economy of Algarve?
The regional economy produced €14.3 billion of output (GDP at market prices) in 2024, 4.9% of Portugal's GDP.
Source: Eurostat · saved copyWhat is the unemployment rate in Algarve?
The unemployment rate (age 15 to 74) was 5.7% in 2025, against 6.0% for Portugal and 6.0% across the EU; 4th highest of 9 regions in Portugal.
Source: Eurostat · saved copyWhat is youth unemployment in Algarve?
Youth unemployment (age 15 to 24) was 18.8% in 2025, against 19.5% for Portugal; 5th highest of 6 regions in Portugal.
Source: Eurostat · saved copyHow much does Algarve spend on research and development?
Spending on research and development came to 0.44% of GDP in 2024 (1.73% nationally).
Source: Eurostat · saved copyWhat is the average salary in The Algarve?
The mean gross monthly earnings of employees working in the Algarve were €1,239 in 2023, the lowest of 9 among Portugal’s regions and below the national figure of €1,461.
Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copyWhat is the gender pay gap in The Algarve?
The gender gap in mean monthly earnings in the Algarve was 5.0% in 2023 (national: 8.3%), the narrowest of 9 among Portugal’s regions.
Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copyWhat is the average income in The Algarve?
In 2023 residents of the Algarve declared €11,403 of gross income per inhabitant to the tax authority, 3rd highest of 9 among Portugal’s regions (below the national figure of €11,909).
Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copyWhat is the median household income in The Algarve?
The median gross declared income of a tax household in the Algarve was €13,109 in 2023, below the national figure of €14,660.
Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copyHow important is tourism in The Algarve?
Tourist accommodation in the Algarve offered 274.2 bed places per 1,000 residents in 2024 (national: 46.0), and 72.5% of guests came from abroad (61.4% nationally).
Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copyHow many people in Algarve are long-term unemployed?
Long-term unemployment (people out of work for a year or more) stood at 1.4% of the labour force in 2025, compared with 2.2% nationally and 1.9% in the EU; the lowest of 7 regions in Portugal. In 2015 it was 6.1%.
Source: Eurostat · saved copyWhat is the unemployment rate for women in Algarve?
The unemployment rate for women in Algarve was 5.6% in 2025, compared with 6.5% nationally and 6.2% in the EU; 2nd lowest of 8 regions in Portugal. In 2015 it was 11.6%.
Source: Eurostat · saved copyHow many women in Algarve are in work?
The employment rate for women aged 20 to 64 reached 79.2% in 2025, compared with 77.0% nationally and 71.3% in the EU; 2nd highest of 9 regions in Portugal. In 2015 it was 69.0%.
Source: Eurostat · saved copyIs the economy of Algarve growing?
Output (gross value added, after inflation) changed by 2.1% in 2024, compared with 2.0% nationally; 4th highest of 9 regions in Portugal. In 2014 it was 1.9%.
Source: Eurostat · saved copyWhat is the average salary in Algarve?
Employers paid an average of €13,035 per employee in 2023, counting wages, salaries and employer social contributions, against €14,784 across Portugal; the lowest of 9 regions in Portugal.
Source: Eurostat · saved copyHow many tourists visit Algarve?
Hotels, campsites and other tourist accommodation recorded 22.9 million nights in 2025, 75% of them by visitors from abroad.
Source: Eurostat · saved copyWhat is the main industry in Algarve?
The largest part of the economy of Algarve in 2024 was trade, transport, hospitality and communications, at 41.6% of gross value added, followed by finance, property and business services (25.2%).
Source: Eurostat · saved copyHow industrial is Algarve?
Industry (manufacturing, mining and energy) made up 4.8% of output in 2024, against 16.4% for Portugal.
Source: Eurostat · saved copyHow fast is the economy of Algarve growing?
Gross value added rose from €6.8 billion in 2015 to €12.4 billion in 2024 in current prices, an increase of 82% before inflation.
Source: Eurostat · saved copyAre jobs growing in Algarve?
The number of people working in Algarve rose by 32.4% between 2015 and 2024, to 268,040.
Source: Eurostat · saved copyMore figures
- 15.2% of employees in the Algarve held a higher-education degree in 2023, below the national figure of 25.8% (the lowest of 9 among Portugal’s regions). Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copy
- 21.9% of employees in the Algarve worked in establishments of firms with 250 or more staff in 2023, against 30.6% nationally. Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copy
- Mean monthly earnings in the Algarve in 2023 were €1,242 in services and €1,219 in industry and construction; the national services figure was €1,507. Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copy
- Personal income tax paid absorbed 12.0% of gross declared income in the Algarve in 2023 (12.9% nationally), 3rd highest of 9 among Portugal’s regions. Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copy
- Goods exports by firms based in the Algarve were equal to 2.0% of the area’s GDP in 2024 (export intensity; national 27.3%), the lowest of 9 among Portugal’s regions. Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copy
- Exports covered 49.7% of imports for traders based in the Algarve in 2024, below the national figure of 73.6%. Source: INE, Instituto Nacional de Estatistica (Statistics Portugal) · saved copy
How Algarve compares with other regions
Mean gross monthly earnings of employees (€) (2023)
Algarve ranks 9 of 9, highest first.
| Rank | Region | Mean gross monthly earnings of employees (€) |
|---|---|---|
| 3 | Norte | €1,349 |
| 4 | Alentejo | €1,326 |
| 5 | Região Autónoma da Madeira | €1,324 |
| 6 | Região Autónoma dos Açores | €1,315 |
| 7 | Centro (PT) | €1,306 |
| 8 | Oeste e Vale do Tejo | €1,250 |
| 9 | Algarve | €1,239 |
Gross income declared for IRS per inhabitant (€) (2023)
Algarve ranks 3 of 9, highest first.
| Rank | Region | Gross income declared for IRS per inhabitant (€) |
|---|---|---|
| 1 | Grande Lisboa | €14,922 |
| 2 | Península de Setúbal | €12,659 |
| 3 | Algarve | €11,403 |
| 4 | Região Autónoma dos Açores | €11,211 |
| 5 | Centro (PT) | €11,167 |
| 6 | Alentejo | €11,116 |
| 7 | Região Autónoma da Madeira | €10,900 |
Median gross declared income per tax household (€) (2023)
Algarve ranks 9 of 9, highest first.
| Rank | Region | Median gross declared income per tax household (€) |
|---|---|---|
| 3 | Centro (PT) | €14,910 |
| 4 | Região Autónoma dos Açores | €14,508 |
| 5 | Região Autónoma da Madeira | €14,346 |
| 6 | Oeste e Vale do Tejo | €14,290 |
| 7 | Norte | €14,118 |
| 8 | Alentejo | €13,912 |
| 9 | Algarve | €13,109 |
Gender disparity in mean monthly earnings (%) (2023)
Algarve ranks 9 of 9, highest first.
| Rank | Region | Gender disparity in mean monthly earnings (%) |
|---|---|---|
| 3 | Alentejo | 10.1% |
| 4 | Grande Lisboa | 8.4% |
| 5 | Norte | 8.1% |
| 6 | Oeste e Vale do Tejo | 7.9% |
| 7 | Região Autónoma dos Açores | 7.5% |
| 8 | Região Autónoma da Madeira | 5.3% |
| 9 | Algarve | 5.0% |
Long-term unemployment (% of labour force) (2025)
Algarve ranks 7 of 7, highest first.
| Rank | Region | Long-term unemployment (% of labour force) |
|---|---|---|
| 1 | Península de Setúbal | 3.1% |
| 2 | Norte | 2.6% |
| 3 | Alentejo | 2.4% |
| 4 | Grande Lisboa | 2.1% |
| 5 | Oeste e Vale do Tejo | 1.9% |
| 6 | Centro (PT) | 1.5% |
| 7 | Algarve | 1.4% |
Unemployment rate, women (2025)
Algarve ranks 7 of 8, highest first.
| Rank | Region | Unemployment rate, women |
|---|---|---|
| 2 | Norte | 7.2% |
| 3 | Grande Lisboa | 6.3% |
| 4 | Região Autónoma da Madeira | 6.3% |
| 5 | Oeste e Vale do Tejo | 5.8% |
| 6 | Centro (PT) | 5.7% |
| 7 | Algarve | 5.6% |
| 8 | Alentejo | 5.6% |
Employment rate, women aged 20-64 (2025)
Algarve ranks 2 of 9, highest first.
| Rank | Region | Employment rate, women aged 20-64 |
|---|---|---|
| 1 | Grande Lisboa | 80.5% |
| 2 | Algarve | 79.2% |
| 3 | Alentejo | 78.7% |
| 4 | Centro (PT) | 78.0% |
| 5 | Península de Setúbal | 77.2% |
| 6 | Oeste e Vale do Tejo | 75.2% |
| 7 | Norte | 74.7% |
Real growth in gross value added (2024)
Algarve ranks 4 of 9, highest first.
| Rank | Region | Real growth in gross value added |
|---|---|---|
| 1 | Região Autónoma dos Açores | 2.2% |
| 2 | Norte | 2.1% |
| 3 | Oeste e Vale do Tejo | 2.1% |
| 4 | Algarve | 2.1% |
| 5 | Grande Lisboa | 2.0% |
| 6 | Península de Setúbal | 2.0% |
| 7 | Centro (PT) | 1.9% |
Compensation per employee (euros) (2023)
Algarve ranks 9 of 9, highest first.
| Rank | Region | Compensation per employee (euros) |
|---|---|---|
| 3 | Península de Setúbal | €14,279 |
| 4 | Região Autónoma dos Açores | €14,038 |
| 5 | Centro (PT) | €13,812 |
| 6 | Norte | €13,632 |
| 7 | Alentejo | €13,214 |
| 8 | Oeste e Vale do Tejo | €13,178 |
| 9 | Algarve | €13,035 |
Nights spent in tourist accommodation (2025)
Algarve ranks 1 of 9, highest first.
| Rank | Region | Nights spent in tourist accommodation |
|---|---|---|
| 1 | Algarve | 22.9 million |
| 2 | Grande Lisboa | 20.0 million |
| 3 | Norte | 15.8 million |
| 4 | Região Autónoma da Madeira | 10.0 million |
| 5 | Centro (PT) | 6.3 million |
| 6 | Alentejo | 4.6 million |
| 7 | Oeste e Vale do Tejo | 4.2 million |
Share of output from industry (manufacturing, mining and energy) (2024)
Algarve ranks 9 of 9, highest first.
| Rank | Region | Share of output from industry (manufacturing, mining and energy) |
|---|---|---|
| 3 | Oeste e Vale do Tejo | 21.0% |
| 4 | Alentejo | 20.3% |
| 5 | Península de Setúbal | 16.3% |
| 6 | Região Autónoma dos Açores | 7.9% |
| 7 | Grande Lisboa | 6.8% |
| 8 | Região Autónoma da Madeira | 5.7% |
| 9 | Algarve | 4.8% |
Share of output from finance, property and business services (2024)
Algarve ranks 3 of 9, highest first.
| Rank | Region | Share of output from finance, property and business services |
|---|---|---|
| 1 | Grande Lisboa | 36.4% |
| 2 | Península de Setúbal | 27.3% |
| 3 | Algarve | 25.2% |
| 4 | Norte | 24.0% |
| 5 | Região Autónoma da Madeira | 21.1% |
| 6 | Oeste e Vale do Tejo | 20.1% |
| 7 | Centro (PT) | 19.7% |
Share of output from public administration, education, health and other services (2024)
Algarve ranks 9 of 9, highest first.
| Rank | Region | Share of output from public administration, education, health and other services |
|---|---|---|
| 3 | Península de Setúbal | 24.4% |
| 4 | Alentejo | 24.1% |
| 5 | Centro (PT) | 22.3% |
| 6 | Grande Lisboa | 20.2% |
| 7 | Norte | 19.9% |
| 8 | Oeste e Vale do Tejo | 19.4% |
| 9 | Algarve | 18.5% |
More on Algarve: overview · health · education and schools · poverty and living standards · government budget · government and politics · Portugal
Sources
- Eurostat: Eurostat dataset nama_10r_2gdp: GDP per person (purchasing power standards), read 23 October 2026 · saved copy (SHA-256 c21f724d14a6…)
- Eurostat: Eurostat dataset nama_10r_2gdp: GDP per person (euros), read 23 October 2026 · saved copy (SHA-256 537f99167955…)
- Eurostat: Eurostat dataset nama_10r_2gdp: GDP (million euros), read 23 October 2026 · saved copy (SHA-256 e3677c4e6d67…)
- Eurostat: Eurostat dataset lfst_r_lfu3rt: Unemployment rate (age 15-74), read 23 October 2026 · saved copy (SHA-256 13f5037ce93a…)
- Eurostat: Eurostat dataset lfst_r_lfu3rt: Youth unemployment rate (age 15-24), read 23 October 2026 · saved copy (SHA-256 83bb1aebc10b…)
- Eurostat: Eurostat dataset lfst_r_lfe2emprt: Employment rate (age 20-64), read 23 October 2026 · saved copy (SHA-256 03191283bf5f…)
- Eurostat: Eurostat dataset rd_e_gerdreg: Research and development spending (% of GDP), read 23 October 2026 · saved copy (SHA-256 36a9132b2284…)
- Eurostat: Eurostat dataset lfst_r_lfu3rt: Unemployment rates by sex, age, educational attainment level and NUTS 2 region, read 23 October 2026 · saved copy (SHA-256 ac151d8a46d5…)
- INE, Instituto Nacional de Estatistica (Statistics Portugal): Anuarios Estatisticos Regionais 2024 (Regional Statistical Yearbooks, 2025 release): all subchapter tables in XLSX by municipality, NUTS 3 and NUTS 2, read 24 October 2026 · saved copy (SHA-256 36f716bda712…)
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- Eurostat: Eurostat dataset nama_10r_3empers: Employment (thousand persons) by NUTS 3 region and industry, read 23 October 2026 · saved copy (SHA-256 222a97c302d3…)
- Eurostat: Eurostat dataset nama_10r_3gva: Gross value added at basic prices by NUTS 3 region and industry, read 23 October 2026 · saved copy (SHA-256 c656e8563bdf…)
- Eurostat: Eurostat dataset nama_10r_2coe: Compensation of employees by NUTS 2 region and industry, read 23 October 2026 · saved copy (SHA-256 895d7cc9e826…)
- Eurostat: Eurostat dataset tour_occ_nin2: Nights spent at tourist accommodation establishments by NUTS 2 region, read 23 October 2026 · saved copy (SHA-256 06f6a82909c0…)
- Eurostat: Eurostat dataset lfst_r_lfu2ltu: Long-term unemployment (12 months and more) by NUTS 2 region, read 23 October 2026 · saved copy (SHA-256 3d5d17a32863…)
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