The island of São Miguel continues to consolidate its position as the economic engine of the Azores, now accounting for more than 60% of the region’s Gross Domestic Product—a symbolic and structural threshold that underscores both growth and imbalance within the archipelago.

According to newly released data from the Serviço Regional de Estatística dos Açores (SREA), São Miguel increased its share of regional GDP from 59% in 2021 to 60.8% in 2023, marking a rise of 1.8 percentage points. In absolute terms, the island’s economic output climbed significantly, from €2.58 billion to €3.27 billion over the same period.

While São Miguel surged ahead, the island of Terceira experienced the most notable relative decline. Its share of regional GDP dropped from 21.46% to 20.31%, a decrease of 1.15 percentage points, despite an increase in overall output—from €938.7 million to €1.09 billion—highlighting how growth elsewhere outpaced its own.

Across the remaining islands, shifts were generally modest and, in many cases, downward. Faial saw its share dip slightly from 6.32% to 6.01%, even as its GDP rose to €323 million. São Jorge declined from 2.77% to 2.66%, and Graciosa registered a marginal decrease from 1.32% to 1.30%. A similar trend was observed in Santa Maria, which slipped from 2.79% to 2.69%.

A handful of islands posted slight gains. Pico increased its share from 3.77% to 3.87%, while Flores edged up from 1.23% to 1.26%. The smallest island, Corvo, also recorded a marginal rise, from 0.18% to 0.19%.

Overall, the regional economy expanded considerably between 2021 and 2023, with total GDP rising from €4.37 billion to €5.37 billion.

Growth with Contrasts

SREA’s consolidated figures for 2023, released in December 2025, show that the Azorean economy grew by 10.6% in nominal terms—slightly below the national average—but by 3.5% in real terms, outperforming Portugal as a whole.

The expansion was driven primarily by trade, transportation, tourism-related accommodation, and food services, which posted a real growth of 6.2%. Public administration, defense, healthcare, and education also contributed, with a 2.8% increase.

Household income indicators also moved upward. Gross Primary Income reached €3.997 billion, while Gross Disposable Income climbed to €4.031 billion. On a per capita basis, income levels approached the national average, even as GDP per capita in the Azores remained below that benchmark.

An Archipelago of Uneven Momentum

The latest figures reaffirm a long-standing reality: while the Azorean economy is growing, it is doing so unevenly. São Miguel’s expanding dominance reflects both its dynamism and the structural challenges facing smaller islands—where gains in absolute terms often fail to translate into greater relative weight.

In an archipelago defined by geography, distance, and resilience, the numbers tell a familiar story: growth, yes—but not equally shared.

Adpated from a story by Filipe Torres who is a journalist at Açoriano Oriental, Paula Gouveia, director