However, “strong inequalities” persist in social, regional, wage, and housing areas, according to “Portugal, Social Balance 2025”.

The poverty risk rate fell from 17% in 2023 to 15.4% in 2025, maintaining the downward trend that began the previous year, according to the report, prepared by researchers from Nova SBE, which emphasises, however, that “structural weaknesses” continue to exist in several areas.

The study shows that average disposable income increased from €9,856 in 2014 to €14,951 in 2024, corresponding to a real growth in purchasing power of 25.2% after inflation is accounted for.

The largest relative gains occurred among the lowest incomes, with increases exceeding 30% in the first five deciles of the distribution.

Despite the improvement in average indicators, poverty remains particularly high among the unemployed (42.6%), single-parent families (35.1%), and people with lower levels of education.

In 2024, there were approximately 301,000 poor children and 541,000 people over 65 years of age living in poverty.

The report also concludes that the richest 10% continue to concentrate almost eight times more income than the poorest 10%, while the richest 25% hold 46.5% of the national income.

In the chapter dedicated to child deprivation, the researchers conclude that almost 30% of poor children live in situations of material and social deprivation.

Among them, about half do not regularly participate in extracurricular or leisure activities, and more than a third live in overcrowded housing.