Overall business income generated in the Algarve showed the highest increase across the country in 2015, driven by booming tourism receipts.
According to the government’s statistics institute, the real increase in trade in the Algarve, North and Central regions "contributed decisively" to the a general increase in the country's Gross Value Added (GVA) from trade, transport, accommodation and catering.
The Algarve showed the highest growth rate in 2015, registering a real increase of 2.7%, according to the preliminary Regional Accounts for 2015.
The North and the Central regions both grew 1.9%, comfortably above the national average increase in regional GDP of 1.6 % in 2015.
"The growth in the North and Cental regions also were boosted by growth from industry and energy production," reads the report.
In the Alentejo region (1.4%) and in the Lisbon Metropolitan Area (1.2%), the increases were lower than the country’s average but Madeira showed a decrease of -0.1%.
The Algarve’s 2016 hotel cash receipts, already up over 12% year-on-year, indicate a continuing boom period that is soaking up local unemployment and keeping the region’s bars and restaurants going.
Christmas and New Year 2016 holiday bookings are close to 100% in the region’s hotels with the reduction in restaurant VAT and the continuing expansion of low-cost flights options helping to secure the Algarve as a safe, inexpensive and sunny on and off-season destination.
