The government secured the general approval of the 2027 State Budget on 28 October. The Minister of Finance defended the state of public finances, stating that residents currently have higher wages, more purchasing power, and more employment compared to April 2024.
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Read today’s briefingA new European report indicates that 66% of people in Portugal experienced a loss of purchasing power as a result of high energy costs. Despite these economic challenges, there is strong public support in Portugal for renewable energy, with many viewing the transition as an urgent priority.
A study by Deco, Universidade Católica, and Mercadona found that 53% of consumers report a decrease in their purchasing power over the past 12 months, while 77% feel a high level of concern over living costs. To cope, 78% have changed their shopping habits, with over 90% valuing promotions and price comparisons, and 75% frequently choosing store brands and looking for discounts.
The IMF reports that the prices of essential goods remain elevated relative to other products due to a series of global shocks, including the pandemic, the war in Ukraine, and conflict in the Middle East. This trend disproportionately impacts lower-income households and risks exacerbating global poverty and inequality as wage growth struggles to keep pace with the cost of living.