Ponta Delgada, Azores, Portugal, March 31, 2026 (Lusa) - Projections for population trends in the Azores reveal a "dramatic transformation", with a 50% decrease in the working-age population and a 60% increase in elderly residents by 2080, according to an OECD report.
These trends will worsen existing pressures on public spending, particularly the need to improve service and infrastructure quality in health, transport, and education, says the "Preparing for Demographic Changes in Azores, Portugal" report by OECD (Organisation for Economic Co-operation and Development) economist Jaebeum Cho.
These figures accounted for 55.2% of the regional government's total expenditure in 2023, according to the document presented on Monday in Ponta Delgada. The report highlights the need to provide new infrastructure and services for tourists and non-residents.
Population decline will place increasing pressure on regional and municipal budgets due to a limited tax base and reduced borrowing capacity, the OECD says.
This situation should increase pressure on the sustainability of regional finances in the medium term. A risk of deepening disparities between islands and compromising strategic investments planned under the Recovery and Resilience Plan exists.
Azorean leader José Manuel Bolieiro, speaking to journalists following the presentation of the document at an extraordinary cabinet meeting, stated that the technical diagnosis "confirms the public policies currently under development." Bolieiro identified demography as a priority, saying that the report highlights specific situations while its conclusions recognise and confirm a significant part of the ongoing public policies. This validation increases the level of confidence, he said.
The regional government did well to ensure policies that gave more confidence to families, said José Manuel Bolieiro. He said that the executive sought to guarantee stable employment contracts in the public and private sectors.
The Azorean leader said that reforms reduced job insecurity and lowered taxes to guarantee more disposable income for families. He said that the government ensured more and better jobs, alongside measures in housing and transport.
OECD economist Jaebeum Cho said that a key recommendation to face the demographic challenge in the Azores involves developing a regional strategy.
The policy analyst recommended aligning this regional strategy with strategic planning through regional and municipal measures.
Rudiger Ahrend, head of the OECD’s Economic Analysis, Statistics, and Multi-level Governance Division, highlighted the importance of preparing the economy and infrastructure for the changes imposed by demographic challenges.
The OECD report on demographic change in the Azores was produced under the European initiative "Helping Regions Adapt to Demographic Change". This project forms part of Pillar 2 of the European Commission’s Talent Booster Mechanism.
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