In terms of GDP, Portugal ranks #47 in the world and falls way behind major economies such as the USA and the UK. Nevertheless, the European Commission's projects place Portugal as the European country with the highest growth in 2022.
Worldwide gross domestic product in 2021 was at about 12,183 USD per capita. GDP in Portugal, on the other hand, reached USD 24,568 per capita, or 253.66 billion USD for the whole country. Portugal is therefore currently ranked 48 of the major economies.
Ukraine is the poorest country in Europe, with a GNI per capita of $3,500, while Moldova is the second poorest country with $4,600, Albania the third, with $5.200, the Republic of Macedonia comes fourth, with a GNI of $5,700, and Bosnia and Herzegovina the fifth poorest, with $6,100.
Spain is, according to the most recent FMI estimates, the 15th largest world economy (in PPP terms), with Portugal 55th. In terms of per capita GDP (PPP) the gap is smaller, with Spain ranking 32nd and its neighbour 43rd.
The unemployment rate in Portugal was at a historic low of 6 per cent; the employed population had reached 4.9 million people; the proportion of workers on non-permanent contracts had fallen by 5.5 per cent since 2015 to 16.5 per cent; and the population in poverty had fallen by 300,000 people compared to 2021.
Everyone agrees that one of the biggest cons of living in Portugal is the bureaucracy. Most things in Portugal can take quite a bit of time and paperwork is also pretty slow. It may take months to apply for a driving license or get it issued.
The cost of food is lower in Portugal because the average wage is lower than in places like the US. The typical worker in Portugal makes about €925 per month (based on 2019 figures). That works out to a little over $12,000/year.
Portugal is smaller in population, and the area offers more advantages to expats as compared to Spain. Affordable living, residency, easy access to social activities, and a pleasant year-round climate make Portugal preferable to Spain. However, each person has their own experience and perspective on the two countries.
France has a GDP per capita of $42,000 as of 2020, while in Portugal, the GDP per capita is $32,200 as of 2020.
Portugal's relatively low productivity, the key driver of economic success, is the main reason. Productivity simply measures output per worker, and countries with high productivity are clearly more efficient at producing goods than low productivity countries, and can thus afford higher wages and salaries.
Luxembourg, the richest country in Europe
Luxembourg has a per capita GDP of $128,820 (IMF, 2023), making it the wealthiest country in Europe. The country is famous for its strong financial sector. Many international banks and investment firms are based in the capital of Luxembourg.
Portugal was the world's richest country when its colonial empire in Asia, Africa, and South America was at its peak. Because this wealth was not used to develop domestic industrial infrastructure, however, Portugal gradually became one of western Europe's poorest countries in the 19th and 20th centuries.
Portugal claimed several coastal territories of Africa, the Middle East, South Asia, and Pacific Asia. These empires were supported by trade routes which brought the newfound wealth of today's territories.
Agriculture remained the backbone of the Portuguese economy until well into the 20th century. Improved cultivation methods and gradual mechanisation boosted production and an export trade in wine, fruit and cork developed, although grain imports were still necessary.
The world's 12th largest economy
Strong growth in 2021 solidified Australia's position as the world's 12th largest economy in 2021. Nominal GDP was around A$2.2 trillion (US$1.6 trillion) in 2021. Australia is home to just 0.3% of the world's population, but accounts for 1.7% of the global economy.
Portugal is home to over half a million foreigners from around the world. Retirement in Portugal can be an affordable adventure, safe from gun violence, with low cost, excellent healthcare, year-round mild weather, and plenty of friends just waiting to meet you.
Is property cheaper in Spain or Portugal? Property in Portugal is far cheaper than in Spain, and with attractive rental yields in Lisbon and the Algarve, you can understand why Portugal is such a popular choice for investors.
Portugal is ranked as the 3rd safest country in the world by the Global Peace Index. That means that Portugal is a safe place to visit—although, like in many destinations, there remains a risk of petty crime (like pickpocketing). Generally, Spain is considered to be a safe place to visit.
“Portugal, and Lisbon in particular, is in high demand from local and international investors,” said Jose Cardoso Botelho, head of Vanguard Properties, one of Portugal's biggest real estate developers. “Housing supply is at historically low levels, which has put pressure on prices.
The average salary in Portugal for the most recent year (2022) is 33,000 EUR per year. That's around 32,117.04 USD per year according to the October 2022 exchange rates.
Relocating to Portugal is possible under a government investment program with a minimal financial option of €250,000. The cosmopolitans move to Portugal for various reasons: its warm climate, security and business opportunities. Let us analyze the main advantages of living in Portugal. Warm climate.
The Portuguese are proud of their history
The Portuguese people are proud advocates of not only their culture but also their history. A good example of this is the fact that ancient practices and beliefs are kept alive and are transferred down generations.
Transparency International's 2022 Corruption Perceptions Index scored Portugal at 62 on a scale from 0 ("highly corrupt") to 100 ("very clean"). When ranked by score, Portugal ranked 33rd among the 180 countries in the Index, where the country ranked first is perceived to have the most honest public sector.
After a deep pandemic-induced recession, the Portuguese economy gained ground in 2021 and GDP surpassed its pre-pandemic level in the first quarter of 2022. The recovery was driven by strong domestic demand and a bounce back in tourism from the second half of 2021, aided by one of the world's highest vaccination rates.