The Algarve's contribution to the national Gross Domestic Product (GDP) increased in 2022, rising to 4,8%, this being the most significant value since 1995, according to regional accounts published by the National Statistics Institute (INE).
The definitive data indicates that the Algarve's GDP grew 7,4% in real terms, performing better than the country's average (5,7%).
The recovery was consolidated in 2022, with the Algarve's GDP surpassing pre-pandemic values, highlights the Algarve's Regional Coordination and Development Commission (CCDR), which released the numbers.
The wealth generated in the Algarve reached 11.624 million euros, according to provisional results, reflecting a year-on-year variation of 17%, well above the 6,8% recorded nationally.
GDP per capita increased to 26,8 thousand euros, remaining the second highest in NUTS II, and widened its gap compared to the country, now representing 114% compared to the national average.
This same indicator, measured in purchasing power parities, now represents 90% of the European Union average, a substantial difference compared to the 79% recorded in 2021.
In turn, the Gross Value Added (GVA) generated by the Algarve economy in 2022 amounted to 10.060 million euros, revealing a nominal variation rate of around 21%, almost double that observed at national level (12%).
Considering the already available breakdown of GVA by 10 branches of activity, it appears that “Wholesale and retail trade; repair of motor vehicles and motorcycles; transport and storage; accommodation and restaurant activities” were responsible for 70,4% of the increase recorded compared to 2021.
The contribution of this sector to the total regional GVA now stands at 39,5%, 6,6 percentage points more than in 2021.
The branch that encompasses “Consultant, scientific, technical and similar activities; administrative activities and support services”, even though it only represents 7,6% of regional GVA, it was the one that made the second largest contribution (10,6%) to GVA growth.
“Real estate activities” and “Public administration and defense; mandatory social security; education, human health and social action”, the second and third most important branches in terms of the volume of GVA generated in the region, saw their weight decrease slightly, to 16,3% and 15,8%, respectively.
INE's regional accounts also indicate that, in 2022, there was a substantial increase in the volume of employment in the Algarve. The total number of individuals in the job market was 248 thousand, 23,9 thousand more than in 2021, which represents an increase of 10,6%, the most significant in the country and with a large difference compared to the national average (1,5 .XNUMX%).
Regarding 2021, according to definitive data, 224,2 thousand individuals were employed, a number still lower than in 2019, but which shows a positive variation of 2,7% compared to the same period last year.
An analysis of the 21 sectors of activity reveals that 18,3% worked in “Accommodation and catering” and 16,2% in “Vehicle trade and repair”, followed by the primary sector with 9,5%, “construction”. with 8,3% and “human health and social action” with 8,2%.
Apparent labor productivity, which relates GVA and total employment, stood at 40,5 thousand euros in 2022, corresponding to 97% of the Portuguese average. This performance, lower than the national average, has occurred for three consecutive years.
The data analyzed by CCDR Algarve also indicates that, in 2021, the Gross Available Income of Families (RDBF) in the Algarve increased by 8,4%, year-on-year, exceeding the national average (5,2%).
The RDBF per inhabitant reached 17.766 euros, which corresponds to a year-on-year increase of 8,8%. The region continues to present the RDBF per capita highest of NUTS II and with a significant disparity compared to the country (14.465 euros).
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