Macroeconomic Determinants of Subjective Well-Being in Portugal: Pathways to Social Sustainability

The measurement of national well-being has become central to both academic and policy debates, particularly within the framework of sustainable development. In this context, this study investigates the relationship between macroeconomic conditions and subjective well-being in Portugal. Using annual data from 2004 to 2022, we explore the effects of GDP per capita, unemployment, and inflation on the Global Well-Being Index (GWBI). Employing ordinary least squares (OLS) regression, the results indicate a significant positive relationship between GDP per capita and subjective well-being, while inflation is negatively associated. Contrary to expectations, the unemployment rate showed a positive and significant association with the GWBI. This counterintuitive result may reflect institutional buffering effects, such as social safety nets, strong family structures, or lagged responses in perceptions of well-being. Similar patterns were observed in other southern European countries with strong informal social support systems. These findings contribute to a deeper understanding of how economic indicators relate to perceived well-being, particularly in the context of a southern European country. The study offers relevant insights for public policy, including the alignment of macroeconomic management with the Sustainable Development Goals (SDGs), especially SDG 3 (Good Health and Well-being) and SDG 8 (Decent Work and Economic Growth).