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Home > Finance > Portugal says direct costs of Storm Kristin exceed $4.7 billion

Portugal says direct costs of Storm Kristin exceed $4.7 billion

Published by Global Banking & Finance Review®

Posted on February 5, 2026

2 min read

Last updated: February 5, 2026

Portugal says direct costs of Storm Kristin exceed $4.7 billion - Finance news and analysis from Global Banking & Finance Review

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Quick Summary

Portugal faces over $4.7 billion in reconstruction costs from Storm Kristin, impacting businesses and economy. Recovery efforts include a government aid package.

Portugal's Reconstruction Costs from Storm Kristin Surpass $4.7 Billion

Economic Impact of Storm Kristin

LISBON, Feb 5 (Reuters) - Portugal faces more than 4  billion euros ($4.7  billion) in direct reconstruction costs following last week’s devastating Storm Kristin, Economy Minister Manuel Castro Almeida said, citing preliminary government estimates.

Direct and Indirect Costs

"It will be a very significant shock to the economy ... the more than 4 billion euros don't include indirect costs," such as disruptions to industry supply chains, he told national broadcaster RTP late on Wednesday.

Government Response and Aid

He said "several business owners plan to build entirely new factories because their current ones are completely unusable, meaning recovery could take many months."

Impact on Businesses and Workers

Workers at companies hit by Storm Kristin will benefit from a lay-off scheme guaranteeing their full net wage up to 2,760 euros per month, with Social Security covering 80% and firms 20%, to prevent job cuts during reconstruction, he added.

The storm swept across central mainland Portugal early on January 31, with winds topping 200 km/h and heavy rains, leaving widespread damage to homes, factories and critical infrastructure and killing at least six people.

The region of Leiria and Marinha Grande, one of Portugal's main industrial hubs known for its plastics and metalworking industries, was among the areas hardest hit by the storm.

The government on Sunday approved a 2.5 billion-euro package of loans and incentives to help people and businesses rebuild after the storm.

The Iberian Peninsula has endured a series of storms bringing heavy rain, snow, and strong winds in the past few weeks, and is now being battered by Storm Leonardo.

($1 = 0.8471 euros)

(Reporting by Sergio Goncalves; Editing by William Maclean)

Key Takeaways

•Portugal's reconstruction costs from Storm Kristin exceed $4.7 billion.
•The storm caused significant economic impact, excluding indirect costs.
•Businesses plan to rebuild, with recovery taking many months.
•A lay-off scheme supports workers with full net wages.
•The government approved a 2.5 billion-euro aid package.

Frequently Asked Questions about Portugal says direct costs of Storm Kristin exceed $4.7 billion

1What are reconstruction costs?

Reconstruction costs refer to the expenses incurred to restore buildings, infrastructure, and services after a disaster, such as a storm or earthquake.

2What is disaster management?

Disaster management involves the planning and coordination of activities to prepare for, respond to, and recover from disasters, minimizing their impact on communities.

3What is economic impact?

Economic impact refers to the effect of an event, policy, or disaster on the economy, including changes in employment, income, and overall economic activity.

Economic Impact of Storm Kristin

Direct and Indirect Costs

Government Response and Aid

He said "several business owners plan to build entirely new factories because their current ones are completely unusable, meaning recovery could take many months."

Impact on Businesses and Workers

The region of Leiria and Marinha Grande, one of Portugal's main industrial hubs known for its plastics and metalworking industries, was among the areas hardest hit by the storm.

The government on Sunday approved a 2.5 billion-euro package of loans and incentives to help people and businesses rebuild after the storm.

The Iberian Peninsula has endured a series of storms bringing heavy rain, snow, and strong winds in the past few weeks, and is now being battered by Storm Leonardo.

($1 = 0.8471 euros)

(Reporting by Sergio Goncalves; Editing by William Maclean)

Key Takeaways

•Portugal's reconstruction costs from Storm Kristin exceed $4.7 billion.

•The storm caused significant economic impact, excluding indirect costs.

•Businesses plan to rebuild, with recovery taking many months.

•A lay-off scheme supports workers with full net wages.

•The government approved a 2.5 billion-euro aid package.

Frequently Asked Questions

1What are reconstruction costs?

Reconstruction costs refer to the expenses incurred to restore buildings, infrastructure, and services after a disaster, such as a storm or earthquake.

2What is disaster management?

Disaster management involves the planning and coordination of activities to prepare for, respond to, and recover from disasters, minimizing their impact on communities.

3What is economic impact?

Economic impact refers to the effect of an event, policy, or disaster on the economy, including changes in employment, income, and overall economic activity.