In May 2025
Regional economy growth accelerated again, following four consecutive months of deceleration

The Regional Indicator of Economic Activity (RIEA) shows that, in May 2025, the regional economy interrupted the four-month trajectory of deceleration – although always remaining in positive territory – and recorded an acceleration compared with the previous month.

As highlighted by the Regional Directorate of Statistics of Madeira (DREM) in the first release of the IRAE in October 2017, the objective of this indicator is “to signal the behaviour of economic activity, particularly in terms of the direction and magnitude of fluctuations: whether in positive or negative territory, identifying accelerations, decelerations and turning points”. Its quantitative value, therefore, assumes a secondary role, as it is not intended as a substitute for the actual variation of Gross Domestic Product, which is assessed using a wider and more comprehensive set of statistical information, even though there is a strong correlation between the two variables.

Economic Overview – Analysis of the Economic Situation of the Autonomous Region of Madeira in May 2025

The Regional Directorate of Statistics of Madeira (DREM) presents an analysis of the main short-term conjunctural indicators, grouped by theme. It is worth noting that many of the changes mentioned are three-month moving averages, a methodology frequently used in publications of this nature to smooth out temporary fluctuations and highlight underlying trends. 

Economic Activity

As previously mentioned, the regional economic activity maintained a positive growth trajectory, recording an acceleration compared with the preceding month.

The number of overnight stays in tourist accommodation increased by 4.8%, slightly above the 4.6% registered in April. Total revenue grew by 20.8%, surpassing the 19.3% of the previous month.

Electricity distribution rose by 3.2%, accelerating from 2.0% in April. In contrast, the consumption of diesel released for consumption decreased by 1.4%, mitigating the decline of 2.1% observed in the previous month.

The ratio between newly incorporated and dissolved companies strengthened its positive balance, with 6.5 new companies for each dissolution, compared with 6.1 in April.

Qualitative Indicators

In May 2025, confidence indicators displayed mixed developments: improvements were recorded in Services, Trade, and Manufacturing, while confidence decreased in Construction and Public Works.

Private Consumption

Gasoline released for consumption registered an increase of 8.9%, higher than the 6.7% of the previous month.

The purchases of new light passenger cars declined by 26.4%, following a decrease of 28.1% in April.

The balance of loans for consumption grew by 8.0%, slightly above the 7.8% increase of the preceding month.

Investment

Investment indicators showed a mixed performance.

Light commercial vehicle sales fell by 14.5%, worsening the decline of 11.9% observed in April.

The median value of bank appraisals for housing rose by 19.3%, the same as in the previous month.

Cement sales decreased by 8.6%, very close to the fall of 8.5% registered in April.

The balance of loans granted to non-financial corporations decreased by 0.9%, after the 0.4% contraction of the preceding month.

The number of building permits increased by 0.7%, reversing the 3.4% decline recorded in April.

External Demand

In May 2025, exports grew by 49.3%, accelerating from the 33.9% registered in April.

Imports increased by 3.1%, following a positive change of 1.9% in the previous month.

The movement of goods through ports rose by 4.4%, slightly below the 5.1% increase in April.

Passenger traffic through airports increased by 12.9%, surpassing the 10.2% growth of the preceding month.

Withdrawals and purchases made with international bank cards grew by 13.0%, slightly above the 12.6% of April.

Labour Market

In May 2025, the main labour market indicators continued to evolve favourably, with a widespread reduction in unemployment.

Job offers increased by 4.5%, a smaller change than that of April (14.9%). The number of registered unemployed persons fell by 13.5%, intensifying the decline of 7.0% observed in the previous month.

Similarly, job applications decreased by 13.4%, following the 7.2% reduction recorded in April.

Prices

The year-on-year rate of the Consumer Price Index (CPI) stood at 3.2% in May 2025, below the 3.6% recorded in the preceding month.

Inflation in goods rose to 2.5% (compared with 2.1% in April), while in services it fell to 3.9%, below the 5.4% observed in April.

The underlying inflation indicator declined to 3.0%, compared with 3.4% in the previous month.

For more information, visit:

• Dashboard (Portuguese only)
• RIEA - In Focus (Portuguese only)
• Time series
• Monthly Summary of Economic Indicators

 

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