The same media outlet reveals that the difference between the Portuguese savings rate and the European average reached its highest level in a year and a half.

The data was released by Eurostat, which shows that among the eight countries that have already submitted data, Portugal is at the bottom of the list among countries where the euro is used as a single currency.

Overall, 14 Member States have already submitted their results regarding the country’s savings rate. When the assessment is made, including countries where the euro is not used, Portugal rises one position, ranking above Poland.

Contrast with the European Union

The Portuguese data contrasts with an average European savings rate of 14.97% and data recorded in the Eurozone of 15.5%. Thus, according to the ECO, the savings level of Portuguese households shows the largest difference compared to the European average recorded since the fourth quarter of 2023, as revealed by Eurostat data.

The Eurostat data show differences compared to the data from the National Statistics Institute (INE) released in September. The Portuguese statistics institute predicted a savings rate of 12.6% in the first quarter of 2025, higher than the 11.95% recorded by Eurostat. The difference in results, according to the ECO, is explained by differences in the calculation and adjustment methods for certain indicators between the two statistical institutions.

Irrelevant Increase

Despite the slight increase of 0.12 percentage points compared to the first quarter, the growth rate still lags behind that of most other European nations. In the second quarter of 2025, according to Eurostat, cited by the ECO, “the household savings rate increased in nine European Union Member States and decreased in five.” The statistical platform highlights Finland (+2.2%) as the country with the largest increase in the savings rate, followed by Belgium (+1.5%) and Sweden (+1.3%).

Why are the Portuguese saving less?

According to ECO, there is no logical and straightforward explanation for the low savings rate in Portugal, compared to other European countries.

ECO points out that Portuguese savings may be affected by Portuguese wages remaining below the European average, making it more difficult to save money. On the other hand, the same media outlet points out that the burden of fixed expenses such as housing, energy, and food may be impacting Portuguese families’ budgets to the point where saving money becomes unfeasible.

Increased investment rate

Eurostat reveals another indicator that impacts household budgets: the investment rate.

While the savings rate refers to household income not spent on consumption, the investment rate reflects the income available for investment, for example, in the purchase or renovation of a home.

In the second quarter, the investment rate for Portuguese households reached 6.27%, an increase of 0.28% compared to the previous quarter. According to the ECO, none of the eight Eurozone member states and the 14 European Union countries showed results as positive as Portugal’s.

Although there was an increase in the second quarter, the investment rate for Portuguese households remains below the Eurozone average, which stood at 8.96%. The data reveal that Portuguese households are not able to invest as much in their own homes as in other European countries. According to the ECO, the data may indicate that high house prices and difficult access to mortgage loans are affecting Portuguese household investments.

Consumption behaviour

Household savings are directly linked to consumption behaviour, which, according to INE, increased 1.4% in the second quarter. However, household disposable income increased by 1.5%, which explains the slight recovery in the savings rate. The INE, quoted by ECO, reveals that “in real terms, final consumption increased by 0.7% in the year ending in the second quarter of 2025.” However, the increase in consumption continues to be held back by the inflation rate.

Housing investment

Regarding housing investment, the INE reveals that “household investment, which corresponds mainly to housing-related assets, increased by 4.3%” in the second quarter. However, the recorded investment rate, at 6%, remains below the Eurozone average.

Portuguese case

The case of Portugal becomes even more relevant when looking at the European context.

According to Eurostat, “in the second quarter of 2025, real per capita household consumption increased by 0.3% in the Eurozone,” despite a 0.1% decline in the previous quarter. All of this is happening while “real per capita household income increased by 0.5%,” despite a 0.1% increase in the first quarter of 2025. This shows that income is growing more rapidly in European households than consumption, which could benefit savings accumulation.

The phenomenon is similar in the European Union, where “in the second quarter of 2025, real per capita household consumption increased by 0.4% in the European Union,” after a 0.3% decline in the previous quarter. At the same time, “real per capita household income increased by 0.6%,” after remaining stable in the first quarter of 2025.

Eurostat also highlights that the increase in real per capita income in the Eurozone during the second quarter “is mainly explained by the positive contribution of workers’ compensation and social benefits other than social transfers in kind,” while, simultaneously, “current taxes and net social contributions were the largest negative contributors in both the euro area and the European Union.”

The data reveal that despite wage growth in Europe, taxes and social contributions continue to negatively impact household income.