According to the regional accounts for 2024 and 2023 recently published by the National Institute of Statistics (INE), in 2024, GDP per capita was €29,302, “corresponding to 108% of the national average (107% in 2023). The same indicator, in purchasing power parities, evolved from 87% to 89% of the European average,” according to the Algarve Regional Coordination and Development Commission.
“Apparent labour productivity reached €46,400 in 2024. “Despite being lower than the national average (47,700 euros), the region has the 4th best performance among the 9 NUTS II regions,” the same entity added.
Regarding employment, in 2023, 268,000 people were counted in the Algarve in terms of total employment, 4,000 more than the previous year. As for paid employment, there were 205,000 workers in this situation, 8,000 more than in 2022.
“Regarding Gross Value Added – GVA (Regional Accounts perspective), the information available up to 2023 for 21 branches of activity tells us that Accommodation and Food Services (2,850 million euros), real estate activities (1,579 million euros) and Wholesale and Retail Trade; The repair of motor vehicles and motorcycles (€1,359 million) accounted for 50.3% of the regional GVA in 2023. In the case of Accommodation and Food Services and Commerce, growth was observed compared to 2022, of 13% and 11.5% respectively, and a contraction of 2.2% in Real Estate Activities,” added the CCDR Algarve.
Accommodation and Food Services was the sector that contributed most to the growth of the regional GVA between 2022 and 2023, representing 29% of the increase recorded in the period.
Construction was the 4th largest sector in terms of GVA in the Algarve, although with a much more modest contribution (6.1%). This is followed by Human Health and Social Action, Public Administration and Defence, Mandatory Social Security, and Administrative and Support Services, with contributions between 5.5% and 5%.