Living Below the Poverty Line: Lisbon's Struggle with Rising Costs and Stagnant Wages

The national poverty threshold is set at 632 euros net per month, but this figure doesn't paint the full picture across Portugal's diverse regions. In Greater Lisbon, the threshold rises to 746 euros, highlighting the stark contrast in living costs and income levels. This disparity places Greater Lisbon and Setúbal at the forefront of regions where residents face the highest risk of poverty, despite the national average suggesting otherwise.

• Regional Disparities: The calculation of the poverty threshold varies by region, based on 60% of the median income per adult. In the Azores, for instance, the threshold is significantly lower at 565 euros, reflecting the region's lower cost of living but also its higher poverty rates.
• Cost of Living vs. Income: Greater Lisbon's higher threshold underscores the challenge of balancing higher living costs with stagnant wages, especially in essential areas like housing.
• Poverty Rates: When adjusted for regional thresholds, Setúbal emerges with the highest poverty rate at 20%, followed closely by Greater Lisbon at 19.2%. This contrasts sharply with the national threshold perspective, where the Azores lead with a 24.2% poverty rate.
• Material and Social Deprivation: The Azores also report the highest levels of severe material and social deprivation (12%), indicating a significant portion of the population struggles with basic needs like unexpected expenses or replacing worn-out furniture.

This analysis reveals the complex interplay between income, living costs, and regional economic disparities, challenging the notion of a one-size-fits-all poverty threshold in Portugal.