Algarve – highest economic growth rate two years running
Once again, the Algarve is the region with the greatest economic growth in 2017, heading the Alentejo, Madeira and Lisbon which all grew above the national GDP of 2.8%.
The Algarve’s economy grew 3.5%, mainly due to tourism, according to data released by the National Statistics Institute on 13 December.
The year before was a good one for the region, showing the highest growth in the country at 4.8%, more than double that year’s national average of 1.9%.
According to the institute, economic growth in the Algarve was decisively influenced by the transport, accommodation and catering sectors, i.e. tourism, whose activity grew 3.8%.
Lisbon’s economy also grew due to tourism which was up 4.5% on the previous year.
The Alentejo’s economic growth was influenced by the performance of industry and energy.
The North, the Centre (both 2.5%) and the Azores (2.4%) registered growth rates lower than the national average.
The 2019 State Budget pretty much leaves the Algarve out of the government’s spending plans, as it has been for the last four years.
Regional investments in the 2019 Budget, allocates 0.2% of expenditure to the Algarve despite the region’s out-sized contribution of tax revenues.
The roadwork budget to 2021 is only €4.2 million, the lowest in the country and “the electrification of the Algarve Line again is delayed with the connection to the airport not planned for the foreseeable future.”
The Algarve region provides the State with billions in tax revenue from the tourism sector, for which the region accounts for 40 to 50% of total tourism receipts in the country and 5% of GDP.