DREM releases Regional Accounts data for 2021 and 2022

Statistics Portugal (INE) releases today the results of the Regional Accounts for the years 2021 and 2022, of final and provisional nature, respectively.

Regional Gross Domestic Product (GDP) exceeded the threshold of 6 billion euros in 2022, growing by 14.2% in real terms

In its initial estimate for 2022, Statistics Portugal indicates a Gross Domestic Product in the Autonomous Region of Madeira (ARM) of 6,020.5 million euros, reflecting growth of 19.8% in nominal terms and 14.2% in real terms (excluding the effect of price change). Only Algarve surpassed the ARM, observing increases of 21.3% and 17.0%, respectively, with both regions significantly exceeding the national averages of nominal growth (+12.2%) and real growth (+6.8%). Área Metropolitana de Lisboa also outperformed the country's average, growing by 8.2% in real terms, while the Azores (6.8%) matched the national average. Norte (5.6%), Alentejo (4.7%), and Centro (3.8%) had more modest economic performances.

The Region's performance is attributed, on the one hand, to the recovery from the pandemic effect (the GDP of 2021 fell short of that of 2019 by approximately 101 million euros), but mainly to the strong growth in tourist activity. Other sectors also stood out, contributing to the unprecedented increase in real GDP in 2022 since the time series began in 1995. It is noteworthy that the GDP of 2022 is 17.4% higher than that of 2019, the largest relative differential between those two years among the 7 Portuguese regions NUTS 2, surpassing the national average of 13.0%.

Thus, by branch of activity in 2022, the Gross Value Added (GVA) of "Wholesale and retail trade; repair of motor vehicles and motorcycles; transport and storage; accommodation and food service activities" (+33.4%) was the one that grew the most in real terms, followed by "Activities of consultancy, scientific, technical, and related services; administrative and support service activities" (+27.5%) and "Information and communication" (+21.3%).

The analysis of the remaining seven branches of activity reveals somewhat differentiated behaviour. Although all are in positive territory in terms of real growth, some branches maintained the growth rate of 2021 ("Real estate activities," with +1.9%, and "Financial and insurance activities," with +1.4%), while others recorded a decrease in their growth rate compared to 2021, with "Construction" standing out (2.6% in 2022 and 7.8% in 2021). It is noteworthy that the branch of "Public administration and defence; mandatory social security; education, human health, and social action," whose GVA has a strong contribution from the institutional sector of Public Administration, grew by 3.1% in real terms.

Regarding GDP per capita in 2022, it stood at 23,675 euros in the Region, slightly above the national average, which was 23,531 euros. Área Metropolitana de Lisboa (30,462 euros) and Algarve (26,754 euros) presented values ​​above the national average, followed by the ARM. Norte (20,137 euros) has the lowest GDP per capita, followed by the Centro (20,161 euros) and the Azores (21,096 euros).

For the Region, the disparity indices of GDP per capita compared to the national average (PT=100) and compared to the European Union average (EU27=100) were 100.6 and 79.2, respectively. When compared to the national, it is noteworthy that, since the beginning of the series (1995), only in 2005 had the ARM exceeded the national average (100.2), and in 2022, this overcoming assumes slightly more expressive contours (100.6), aligning the ARM, Área Metropolitana de Lisboa (129.5), and Algarve (113.7) as regions with GDP per capita higher than the national average. Note that compared to 2021, this index grew by 6.3 percentage points. Compared with the EU-27, it is noteworthy the increase in its disparity index by 8.2 percentage points, reflecting convergence towards the average of the EU-27, with the value of 79.2 being the highest since 2011.

As for apparent labour productivity, which corresponds to the ratio between GVA and Employment, it stood at 39,353 euros, below the national value (41,658 euros).

It should be noted that Statistics Portugal is expected to present the final values for 2022 a year from now, and due to the small size of the Region's economy, revisions may have some significance.

Growth of the Autonomous Region of Madeira's Economy in 2021 revised upwards by Statistics Portugal to 9.2%

The final information for the year 2021 reveals that the regional Gross Domestic Product (GDP) reached 5,025.7 million euros, reflecting growth of 12.9% in nominal terms and 9.2% in real terms compared to the previous year (10.0% and 8.0%, respectively, in Statistics Portugal's first estimate). After the strong real decline in GDP in 2020 (-15.4%), the performance in 2021 indicates a partial recovery, still within the pandemic context, driven by tourist activity, the main dynamo of the Region's economy. The ARM stood out from the other regions, with the highest real growth (9.2%), followed by the Azores and Algarve (both with 7.4%) and Alentejo (6.8%), all above the national average (5.7%). The Área Metropolitana de Lisboa (5.7%) equalled the national average, while Norte (5.6%) and Centro (4.9%) remained below.

The activities that most contributed to the economic growth in 2021 were "Activities of consultancy, scientific, technical, and related services; administrative and support service activities," whose GVA increased by 29.0% in real terms, while in "Wholesale and retail trade; repair of motor vehicles and motorcycles; transport and storage; accommodation and food service activities," this growth was 17.4%.

In 2021, the disparity indices compared to the national average and compared to the average of the European Union (EU27) were 94.3 and 71.0, respectively.

It should be noted that Gross Fixed Capital Formation (GFCF, the main component of investment) carried out in the ARM in 2021 amounted to 971.7 million euros, representing a substantial growth compared to the previous year of 22.2%, higher than that observed in the country (13.3%). The ARM effectively recorded the highest growth among the NUTS 2 regions of the country in this macroeconomic variable, and this GFCF amount is the highest since 2012.

In turn, the gross disposable income (GDI) of the ARM households increased by 5.0% in 2021, standing at 13,544 euros per capita, translating into a disparity index compared to the national average of 93.6, i.e., 6.4% below average. At the national level, households’ GDI recorded a slightly higher increase (5.2%).

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