Despite Portugal recording an overall reduction in poverty in recent years, Madeira continues to face some of the country’s most serious social and economic challenges, according to the report “Portugal, Social Balance 2025,” produced by researchers from Nova School of Business and Economics.
The study highlights that deep regional inequalities remain across the country, with the autonomous regions showing some of the most worrying indicators of deprivation and economic vulnerability.
While the Azores recorded the second-highest poverty rate in Portugal at 17.3%, Madeira also continues to struggle with significant hardship. The report reveals that Madeira had the second-highest level of material and social deprivation in the country, with 15.1% of the population affected, well above the national average.
Researchers stress that these inequalities go far beyond income alone. In Madeira, the figures reflect persistent problems linked to living conditions, access to essential services, housing quality, and broader economic insecurity.
Although Madeira’s overall poverty rate was slightly lower than that of the Azores, the region remains among the most socially vulnerable areas of Portugal. The findings suggest that many Madeiran families continue to experience daily difficulties despite broader national improvements in economic indicators.
The report also points to a heavy dependence on social support within Madeira. According to the study, social transfers and government assistance reduce poverty levels in Madeira by around eight percentage points, one of the highest impacts recorded nationally. Researchers say this demonstrates how essential public support remains for many households in the region.
By comparison, wealthier areas such as Greater Lisbon recorded the country’s lowest poverty rate at 12.2%, and social benefits had a far smaller effect there, reducing poverty by only around four percentage points.
The researchers argue that these figures expose “persistent structural weaknesses” within Portugal’s autonomous regions. They warn that national progress in reducing poverty is masking serious regional disparities, particularly in Madeira and the Azores, where deprivation and economic vulnerability continue to affect a significant part of the population.
The study concludes that Portugal remains a “deeply unequal” country in territorial terms and calls for more targeted public policies that address the specific realities of regions such as Madeira, where social deprivation remains stubbornly high despite years of national economic recovery.
Samantha Gannon
info at madeira-weekly.com
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