Almost one out of five Portuguese is living below the poverty line, with an annual income of less than 4,904 per year, which is less than 409 euros a month, according to a report published today by the Portuguese National Statistical Service. Because of the crisis, the poverty rate increased in 2012 and reached 18.7% compared to 17.9% in 2009. According to Ine it is the most increased rate since 2005. If you remove the social benefits, unemployment, family pensions, the rate is 46.9%, versus 43.4% in 2009.
Poverty mainly affects families with many children, the unemployed and young people under 18 years, specified in the survey. This has increased the gap between rich and poor. 10% of the richest Portuguese are gaining 10.7 times more than 10% of the poorest, compared to 9.2 in 2009. In 2013, 10.9% of the population suffered from a significant lack of material goods, having been forced to deprive the car, washing machine or a television for lack of money. In return for a loan of 78 billion euros received in May 2011 by the European Union and the International Monetary Fund, Portugal has embarked on a strict austerity policy.
Because of this increased unemployment, decreased significantly while wages, pensions and social benefits, which rapidly reduced the purchasing power of the Portuguese. The third quarter of 2013 Portugal’s economy returned to growth after 2.5 years of recession. Meanwhile, the last quarter of 2013, household consumption grew for the first time since the end of 2010.
By Nicole P.