In March 2026
Regional economic growth accelerated

The Regional Indicator of Economic Activity (RIEA) reveals that the economic activity of the Region maintained its growth trajectory, recording an acceleration relative to the previous month. The ARM thus completes a cycle of 60 consecutive months (5 years) of growth.

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 March 2026, the regional economy maintained a growth trajectory, showing signs of strengthening economic activity.

In the tourism sector, the number of overnight stays in tourist accommodation establishments decreased by 2.1%, repeating the rate of change observed in the previous month. Despite this, the sector's monetary indicators maintained a favourable trend, with total revenue growing by 9.2%, a value above the 8.5% recorded in February. In contrast, RevPAR continued its deceleration, standing at 5.7%, after the 6.4% observed in the previous month and 7.6% in January. In turn, the net bed occupancy rate increased to 62.5%, surpassing the 61.0% recorded in February.

Electricity distribution reinforced its growth pace, recording an increase of 5.3%, above the figure observed in the previous month (4.8%). In turn, diesel release for consumption rose by 2.6%, reversing the decreases recorded over the previous six months.

With regard to business dynamics, the ratio of newly incorporated to dissolved companies stood at 3.1 new companies per dissolution, reflecting an improvement compared to February (2.8).

Qualitative Indicators
In March 2026, confidence indicators in Manufacturing, Trade, and Construction and Public Works decreased compared to the previous month, while the confidence indicator for Services increased.

Private Consumption
In the month under review, gasoline release for consumption recorded a year-on-year rate of change of 9.5%, surpassing the figure observed in February (6.8%) and continuing the acceleration trend that began in the previous month.

The balance of loans granted to households and non-profit institutions serving households (NPISH) for consumption and other purposes increased by 9.4%, above the value recorded in February (8.7%). Additionally, withdrawals and purchases made through automatic payment terminals (APT) using domestic cards grew by 4.8%, showing an acceleration compared to the previous month (3.4%).

On the other hand, sales of light passenger vehicles decreased by 11.3%, although this contraction was less pronounced than that observed in the preceding month (-25.2%).

Investment
In March 2026, investment indicators showed a recovery compared to the previous month, reflecting an overall more favourable trend.

Sales of light goods vehicles recorded an increase of 16.4%, reversing the downward trend observed over the previous three months. In the opposite direction, the balance of loans granted to non-financial corporations decreased by 0.6%, following the reduction of 0.2% recorded in the previous month.

Cement sales increased by 0.9%, countering the downward trend recorded in previous months. In turn, the balance of housing loans granted to households and the bank appraisals of housing increased by 9.0% and 19.1%, respectively, maintaining their expansion trajectory.

With regard to the number of building permits, an increase of 7.0% was recorded, although less pronounced than that registered in the previous month (14.8%).

External Demand
In March 2026, regional goods exports decreased by 3.9%, reflecting, however, a less pronounced contraction than that observed in the previous month (-7.4%). In turn,  the import of goods increased by 51.9%, accelerating compared to the growth recorded in February (39.2%).

The movement of goods through the Region's ports continued its growth trajectory, recording an increase of 14.5%, above that observed in the previous month (8.7%).

Passenger traffic at regional airports continued to show a positive trend, recording an increase of 4.0%, accelerating slightly relative to February (3.8%).

As regards withdrawals and purchases through APTs using international cards, a decrease of 0.9% was observed, less pronounced than that recorded in the previous month (-1.6%).

Labour Market
In March 2026, the number of registered unemployed decreased by 6.5%, maintaining the reduction trend observed in previous months, although less pronounced than that recorded in February (-6.9%).

Job applications decreased by 6.0%, maintaining their downward trajectory, albeit less sharply than in the preceding month (−6.9%).

In turn, job offers increased by 1.8%, reversing the decrease recorded in February (-3.8%).

Prices
The year-on-year rate of change of the Consumer Price Index (CPI) increased to 3.2% in March 2026, after the 2.8% recorded in the previous month.

The acceleration of inflation was reflected in both goods and services. Goods inflation stood at 2.2% (1.7% in February), while services inflation accelerated to 4.4%, after the 4.1% observed in the preceding month.

The underlying inflation indicator, which excludes unprocessed food products and energy, increased to 2.9% (2.6% in February).

For more information, visit:

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

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