President Albuquerque Argues, That Economic Growth Benefits Madeirans
This morning, Miguel Albuquerque spoke about the increase in average wages in Madeira. He challenged the opposition’s claims that economic growth does not benefit most people.
He criticized the opposition for repeatedly saying that GDP growth has no real effect on people's lives. To support his argument, he shared statistical data, calling it undeniable evidence. According to the data, the average gross monthly wage rose from €1,143 in 2015 to €1,475 in 2024.
Over the past ten years, the average gross monthly wage in the Region has grown by 29%. This increase translates to a gain of about 20%, after deducting inflation recorded between 2015 and 2024.
The average gross monthly pay of workers in Madeira increased by 29% between 2015 and 2024.
Let’s Make the Math
A rise from €1,143 in 2015 to €1,475 in 2024 refers to a 29% increase. But money has lost its value over time, so let’s examine the accumulated inflation rate over the years.
Inflation in Madeira Since 2015
These are the inflation rates for Madeira throughout the last years. Based on the official numbers from DREM, let’s calculate the overall inflation.
Year | Calculation | Index |
2015 | 100 | 100 |
2016 | 100.0 * (1 - 0.006) | 99.4 |
2017 | 99.4 * (1 + 0.01) | 100.4 |
2018 | 100.4 * (1 + 0.023) | 102.7 |
2019 | 102.7 * (1 - 0.002) | 102.5 |
2020 | 102.5 * (1 - 0.014) | 101.1 |
2021 | 101.1 * (1 + 0.011) | 102.2 |
2022 | 102.2 * (1 + 0.07) | 109.4 |
2023 | 109.4 * (1 + 0.05) | 114.9 |
2024 | 114.9 * (1 + 0.034) | 118.8 |
The overall Inflation between 2015 and 2024 = 18.8%. The inflation is much higher than claimed.
Real Wage Gain At 10.2%
When we subtract the 18.8% inflation from the overall 29% increase in wages, the actual real gain comes out to only 10.2%. It appears unclear where other figures would come from. Adjusted for inflation, someone earning €1,143 in 2015 would now be making €1,242 in 2024.
So Madeirans Have More Money Now, Do They?
No, they don't. At least those who do not own property and have to pay rent. Here's why: Rent went up almost 200%, and everyone needs a roof over their head right? Back in 2015, the average price per square meter in Madeira - according to the real estate website Idealista - was €5.10/m². Fast forward to 2025, and it’s climbed to over €15/m².
A Considerable Real Loss of Purchasing Power: An Example
2015: €837 After Rent
An individual earning €1,143 and renting a 60/m² flat in 2015 would pay €306 in rent (60/m² * €5.10). This means the person earning an average Madeiran wage had €837 left to make it throughout the month.
2024: €467 After Rent
While in 2025, the same individual now earning €1,475 would pay €900 in rent (60/m² * €15.00). Meaning the person earning an average wage has €575 left to make it throughout the month. On top he is facing a price hike of 18.8%, that leaves him effectively with €467, considering inflation.
Disagree with the math? Share your thoughts in the comments!
Inflation Statistics for Madeira
2024: 3.3%
https://estatistica.madeira.gov.pt
2023: 5%
https://estatistica.madeira.gov.pt
2022: 7.0%
https://estatistica.madeira.gov.pt
2021: 1.1%
https://estatistica.madeira.gov.pt
2020: -1.4%
https://estatistica.madeira.gov.pt
2019: -0.2%
https://estatistica.madeira.gov.pt
2018: 2.3%
https://estatistica.madeira.gov.pt
2017: 1,0
https://estatistica.madeira.gov.pt
2016: -0.6%
https://estatistica.madeira.gov.pt
2015: -0.1%
https://estatistica.madeira.gov.pt
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