In February 2026

Regional economic growth accelerated

The Regional Economic Activity Indicator (IRAE) shows that the Region’s economic activity maintained its growth trajectory, recording an acceleration compared to 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 Overview – Analysis of the Economic Situation of the Autonomous Region of Madeira in February 2026

Economic Activity

In February 2026, the regional economy showed a strengthening in the pace of growth, recording an acceleration compared to the previous month.

The number of overnight stays in tourist accommodation establishments declined again (-2.1%), deepening the decrease recorded in January (-1.6%). Nevertheless, total revenue maintained a positive trend, growing by 8.5%, slightly above the previous month (8.4%). In contrast, RevPAR continued its deceleration path, settling at 6.4% (7.6% in January and 11.9% in December).

Electricity distribution intensified its growth, recording an increase of 4.8%, higher than that observed in January (3.9%). Meanwhile, diesel release for consumption remained in negative territory, decreasing by 2.7%, worsening the downward trend of previous months.

Regarding business dynamics, the ratio of newly incorporated to dissolved companies stood at 2.8 new companies per dissolution, reflecting a slowdown compared to January (3.4).

Qualitative Indicators

In February 2026, confidence indicators in the Manufacturing Industry, Trade, and Construction and Public Works sectors declined compared to the previous month, while Services recorded an increase.

Private Consumption

In the month under review, gasoline release for consumption recorded a year-on-year increase of 6.8%, higher than in January (5.1%), interrupting the deceleration trend observed in previous months.

The outstanding balance of loans granted to households and non-profit institutions serving households for consumption and other purposes increased by 8.7%, slightly below the figure recorded in the previous month (9.0%).

Withdrawals and purchases through automatic payment terminals (APT)) using domestic cards grew by 3.4%, slowing compared to January (3.9%).

Purchases of new light passenger cars decreased by 25.2%, representing a significantly sharper contraction than in the previous month (-3.4%).

Investment

In February 2026, investment indicators continued to show a broadly heterogeneous pattern, with divergent signals across different indicators.

Light commercial vehicle sales declined by 15.4%, representing a less pronounced contraction than in January (-19.6%). Meanwhile, the outstanding balance of loans granted to non-financial corporations decreased by 0.2%, indicating a milder reduction than in the previous month (-0.9%).

Cement sales remained in negative territory, with a year-on-year change of -5.8%, worsening the decline observed in January (-4.1%). Conversely, the balance of housing loans granted to households and bank appraisals for housing increased by 8.5% and 20.2%, respectively, maintaining their upward trajectory.

Regarding the number of building permits issued, there was an increase of 14.8%, reversing the decline observed in the previous month (-24.3%). 

External Demand

In February 2026, regional exports of goods decreased by 7.3%, representing a milder contraction than in the previous month (-11.4%). Conversely, imports of goods increased by 28.9%, accelerating compared to January (24.7%).

Movement of goods in the Region’s ports increased by 8.7%, reversing the decline recorded in the previous month (-4.6%).

Passenger traffic at regional airports continued to grow, increasing by 3.8%, although at a slower pace than in January (4.2%).

Regarding withdrawals and purchases through APT using international cards, a decrease of 1.6% was observed, worsening the decline recorded in the previous month (-0.5%).

Labour Market

In February 2026, the number of registered unemployed decreased by 6.9%, maintaining the downward trend of previous months and in line with the reduction recorded in January (-6.9%).

Job applications decreased by 6.9%, confirming the continuation of the downward trend, although slightly less pronounced than in the previous month (-7.4%).

Meanwhile, job offers decreased by 3.8%, representing a less sharp decline than in January (-21.5%).

Prices

The year-on-year rate of change of the Consumer Price Index (CPI) increased to 2.8% in February 2026, following 2.3% in the previous month.

Inflation in goods stood at 1.7% (1.3% in January), while services inflation accelerated to 4.1%, after 3.4% in the previous month.

Underlying inflation indicator, which excludes unprocessed food and energy products, rose to 2.6%, following 2.0% in January.

 

For more information, visit:

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

Back

• Next