European Commission - Internal Market, Industry, Entrepreneurship and SMEs

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Algarve Region of Portugal


The Algarve region is located in the south of Portugal, bordered on the north by the Alentejo region, on the east by the Spanish region of Andalusia, and on the southern and western areas by the Atlantic Ocean. The region is spread over 5,000 km 2 and is home to about 440,000 inhabitants, which accounts for 4.3% of the Portuguese population.
The regional GDP per capita expressed in purchasing power standards (PPS) has decreased in the last few years but is still the second highest amongst the Portuguese regions, reaching 78.7% of the EU28 average (2014).
World-wide recognised as a holiday destination, Algarve is one of the main tourism areas of the country. The regional economy is mainly based in three key sectors: tourism (accommodation and catering), retail and wholesale, and construction.

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