In June 2025
Regional economy grew at the same pace as in the preceding month

The Regional Indicator of Economic Activity (RIEA) shows that, in June, the Region’s economic activity maintained its growth trajectory, with no change in pace compared to the previous period.

 

As DREM noted in the first release of the IRAE, in October 2017, its objective is “to signal the behaviour of economic activity, namely with regard to its direction and the magnitude of fluctuations: whether the economy is in positive or negative territory, the presence of accelerations or decelerations, and the identification of turning points”. Its quantitative value therefore, assumes a secondary importance and should not be regarded as a substitute for the actual change of Gross Domestic Product, which is determined using a broader and more comprehensive set of statistical information, notwithstanding the strong correlation between the two variables.

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

Economic Activity

As previously noted, regional economic activity continued its positive growth trajectory, keeping the same pace as in the previous month.

The number of overnight stays in tourist accommodation increased by 5.6%, exceeding the 4.8% recorded in May, while total revenues rose by 21.3%, also surpassing the 20.8% observed in the preceding month.

Electricity distribution increased by 2.1%, albeit at a slower pace than the 3.2% growth recorded in May. Conversely, diesel released for consumption grew by 1.1%, reversing the 1.4% decline observed in the previous month.

The ratio of newly incorporated to dissolved companies remained positive, with 5.2 new companies for each dissolution, although below the ratio of 6.5 registered in May.

Qualitative Indicators

In June 2025, confidence indicators showed positive developments across all surveyed sectors — Manufacturing, Trade, Construction and Public Works, and Services — compared with the previous month.

Private Consumption

Gasoline released for consumption recorded an increase of 10.9%, higher than the 8.9% growth of the previous month, while purchases of new passenger cars fell by 16.2%, moderating the 26.4% decrease observed in May.

The balance of loans for consumption and non-profit institutions serving households grew by 8.6%, strengthening the 8.0% increase recorded in May.

Cash withdrawals and purchases through point-of-sale (POS) terminals using national cards accelerated compared with the previous month (7.3% in June 2025 versus 6.4% in May).

Finally, within this context, it is worth noting the less pronounced decline (-16.2%) in purchases of new light passenger cars compared with the previous month (-26.4%).

Investment

Investment indicators exhibited mixed developments. Sales of light commercial vehicles fell by 13.0%, slightly less than the 14.5% decrease recorded in May.

The median value of bank appraisals for housing increased by 18.1%, slightly below the 19.3% of the previous month.

Cement sales fell by 7.2%, a less sharp decline than the 8.6% observed in May.

The balance of loans granted to non-financial corporations contracted by 1.8%, following a 0.9% reduction in the previous month.

Meanwhile, the number of building permits remained stable, with no significant change compared with the preceding month.

External Demand

In June 2025, exports grew by 50.8%, close to the 49.3% recorded in May. Imports, however, decreased by 9.1%, in contrast to the 5.2% growth registered in the previous month.

The movement of goods in ports grew by 4.8%, exceeding the 4.4% increase of the preceding month.

Passenger traffic at airports rose by 15.5%, reinforcing the 12.9% growth of May.

Withdrawals and purchases made through POS terminals using international cards increased by 13.1%, slightly above the 13.0% recorded in May.

Labour Market

In June 2025, the key labour market indicators continued to show favourable developments, notably the reduction of the unemployment rate in the 2^nd quarter of 2025 to 4.8%, below both the 5.2% of the same quarter of the previous year and the 6.7% of the preceding quarter. Employment also recorded a year-on-year increase of 2.5%.

Job offers rose by 3.2%, below the 4.5% growth in May.

The number of registered unemployed decreased by 16.3%, following a 13.5% fall in the previous month.

Likewise, job applications declined (-15.8%), intensifying the 13.4% decrease recorded in May.

Prices

The year-on-year rate of change of the Consumer Price Index (CPI) stood at 3.0% in June 2025, slightly below the 3.2% recorded in May.

Inflation in goods decreased to 1.9% (2.5% in May), while services inflation rose to 4.2%, above the 3.9% of the preceding month.

The underlying inflation indicator fell to 2.7%, compared with 3.0% in May.

For more information, visit:

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

Back

• Prev
• Next