The at-risk-of-poverty rate in the Azores, released yesterday by Portugal’s National Statistics Institute (INE) for 2024, recorded the largest decrease in the country, falling by 7%, from 24.2% to 17.3%. The Azores are no longer the region with the highest risk of poverty; that position is now held by Alentejo, at 18%. The national average currently stands at 15.4%, meaning that around 1.7 million Portuguese citizens are still at risk of poverty.

To be clear, the At-Risk-of-Poverty Rate is defined as the proportion of the population whose equivalent income falls below the poverty line, set at 60% of the median income per adult equivalent (€14,465). In practical terms, this corresponds to people living on annual incomes of up to €8,679 (or €723 per month).

Older people were the group in which the reduction in poverty rates was most pronounced. By region, the survey shows that last year, using the national poverty threshold, Greater Lisbon had the lowest risk of poverty (12.2%). The Algarve also recorded a poverty risk below the national average (15.1%). However, in Alentejo, the Azores, and the Oeste and Vale do Tejo region, the incidence of poverty was above 17%.

In the case of the Azores, in 2023 there were around 57,000 residents at the poverty threshold; in 2024 this number fell to 41,000—a significant decrease of 16,000 people. A superficial analysis of these figures does not allow for firm conclusions about the reasons behind this decline. It is likely that a combination of factors contributed to the improvement, including economic performance, possibly higher employment levels, and income growth. Social support measures also play a role, since the figures cited include these transfers. Without social support, the poverty rate in the Azores would rise to 21.6%, applying the national average for transfers, where the rate increases to 20.8%.

These figures—representing real people—are encouraging, especially given the difficult times we are living through and those that lie ahead. The coming years are expected to be strongly marked by Europe’s increased focus on defense and the resulting rise in rearmament spending, which may come at the expense of social policies. The question remains: will a small country like Portugal, and even more so an outermost region like the Azores, be able to maintain this downward trajectory? In other words, if expectations of reduced social support materialize, how can the income of Azoreans be increased so as to remove them from the risk of poverty?

The answer lies only in energizing the economy, creating jobs, improving qualifications, boosting productivity, and raising wages. Employment rates are already aligned with the national average; what is still lacking is greater qualification and specialization of the economy.

In Diário Insular, José Lourenço, Director, and Armando Mendes, PhD, editor-in-chief.