Azores faces 53 million euro revenue drop due to population data updates

The Azores region faces a projected revenue decrease of approximately 53 million euros in 2027 due to updated resident population data. Regional Secretary of Finance, Duarte Freitas, announced that while the archipelago's population has grown, it has done so at a slower rate than the national average.

This demographic shift results in two primary financial impacts. First, the lower population count is estimated to reduce VAT revenue by 20 million euros due to per capita distribution. Second, the statistical revision raises the Azores' GDP per capita to over 90% of the national average, which, under the Autonomous Regions Finance Law, triggers a reduction in state budget transfers estimated at 33 million euros.

Despite these losses, the regional government's multi-annual budgetary programming for 2027–2030 estimates an annual investment plan between 600 and 700 million euros for the years 2027 through 2029.