Portugal ranks third in EU for household weight in GDP

Household spending accounts for 66.5% of Portugal’s GDP, making it the third-highest share in the European Union, according to Eurostat data reported by ECOnews. For international readers, the figures underline how strongly Portugal’s economy depends on consumer demand compared with the EU average of 52%.

Eurostat said household consumption in the EU rose 1.6% in real terms in 2025 from a year earlier, slowing from 1.8% growth in 2024. The biggest increases by spending category were in information and communication, up 3.3%, leisure, sport and culture, up 3.1%, and both clothing and footwear and household goods and routine home maintenance, each up 2.7%.

The only category to post a decline was alcohol, tobacco and narcotics, which fell 1.9%, extending the negative trend seen between 2024 and 2023. Across member states, the strongest consumption growth was recorded in Bulgaria at 7%, Malta at 6.8% and Cyprus at 5.1%, while Estonia and Finland posted declines of 0.3% and 1% respectively.

Eurostat also said housing, water, electricity and gas account for about a quarter of household spending, equivalent to 12.4% of EU GDP. Together with food and non-alcoholic beverages and transport, those three categories make up almost half of total household expenditure. Greece, Croatia and Portugal had the highest household spending shares in GDP in 2025, at 75.6%, 68% and 66.5% respectively.

Originally published at Eco.pt