In December 2025

Regional economy maintained its growth trajectory, albeit at a slower pace than in the previous month

The Regional Economic Activity Indicator (RIEA) reveals that, in December 2025, the regional economic activity maintained a positive growth trajectory, albeit at a slower pace than that recorded in the previous month.

As stated by DREM in the first release of the RIEA, in October 2017, its purpose is to “signal the behaviour of economic activity, namely with regard to its direction and the magnitude of fluctuations: whether it is in positive or negative territory, accelerations, decelerations and the identification of turning points”. Its quantitative value, therefore, assumes secondary importance and should not be regarded as a substitute for the real growth rate of Gross Domestic Product, which is calculated using a broader and more comprehensive set of statistical information, although a strong correlation exists between the two variables.

Economic Activity

In December 2025, the regional economy maintained its growth trajectory, albeit at a more moderate pace than in the previous month.

The number of overnight stays in tourist accommodation establishments increased by 2.1%, decelerating compared to the previous month (3.5%). Total revenue grew by 12.0%, below the 15.3% recorded in November, whilst RevPAR also decelerated to 11.9%, after the 15.0% observed in the preceding month.

Electricity distribution maintained its growth trajectory, with an increase of 3.0%, slightly above that recorded in November (2.9%). In the opposite direction, diesel release for consumption decreased by 2.1%, a more pronounced reduction than that recorded in the previous month (-0.1%).

In turn, the ratio of newly incorporated to dissolved companies stood at 2.5 new companies per dissolution, a value below that observed in November (3.2).

Qualitative Indicators

Confidence indicators decreased in December 2025, compared to the previous month in the Manufacturing, Trade and Services sectors, whilst an increase was recorded in Construction and Public Works.

Private Consumption

In the reference month, gasoline release for consumption recorded a year-on-year change of 6.8%, lower than that observed in November (8.1%), confirming a slowdown in growth dynamics.

The balance of loans granted to households and non-profit institutions serving households for consumption and other purposes increased by 8.9%, slightly above the value observed in the previous month (8.7%).

Cash withdrawals and purchases through automatic payment terminals (APT) with national cards grew by 4.5%, decelerating compared to November (6.0%).

Purchases of new light passenger cars decreased by 5.8%, reflecting a less intense contraction than that observed in the previous month (-18.8%).

Investment

In December 2025, investment indicators again showed differentiated trends.

Sales of light commercial vehicles recorded a sharp decline of 31.0%, reversing the growth trend observed since September. On the other hand, the balance of loans granted to non-financial corporations decreased by 0.4%, a less pronounced reduction than that recorded in the previous month (-1.9%).

Cement sales remained in negative territory, recording a year-on-year change of -11.8%, worsening the decline observed in November (-5.6%). In the opposite direction, the balance of housing loans granted to households increased by 8.1%, whilst bank appraisals of housing continued to show a positive trend, with an increase of 17.5%.

Regarding the number of building permits, a decrease of 13.2% was recorded, following the 5.2% reduction recorded in the previous month.

External Demand

Regional exports of goods recorded, in December 2025, a slight decrease of 0.2%, reversing the growth trajectory observed since the beginning of the year and returning to the level of December 2024 (-0.2%). In turn, the import of goods increased by 17.2%, following the 3.0% reduction recorded in the previous month.

The movement of goods at the Region's ports grew by 7.2%, albeit slightly below that observed in November (7.9%).

Passenger traffic at regional airports maintained its growth trajectory, increasing by 7.4%, albeit at a slower pace than that recorded in the previous month (11.5%).

Regarding cash withdrawals and purchases through APT with international cards, an increase of 4.1% was recorded, below the value indicated for November (7.2%).

Labour Market

In December 2025, the number of registered unemployed decreased by 7.8%, maintaining the downward trajectory of previous months, albeit less pronounced than that recorded in November (-10.9%).

Job applications also recorded a decrease (-7.7%), confirming the continuation of the declining trend, albeit less intense than in the preceding month (-10.8%).

On the other hand, job offers again intensified their decline, recording a year-on-year change of -18.3%, following the 12.8% fall observed in November.

Prices

The year-on-year rate of change of the Consumer Price Index (CPI) in December 2025 slowed to 3.1%, after the 3.3% recorded in the previous month.

Inflation in goods stood at 2.1% (2.3% in November), whilst in services it decelerated to 4.4%, after the 4.7% observed in the preceding month.

The underlying inflation indicator, which excludes unprocessed food and energy products, decreased to 2.7% after the 2.8% recorded in November.

 

For more information, visit:

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

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