In April 2026

Regional economy continued to accelerate

The Regional Indicator of Economic Activity (RIEA) reveals that the Region's economic activity maintained its growth trajectory, recording an acceleration compared with the previous month, the third consecutive one.

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 April 2026, in 7 topics

Economic Activity

As mentioned above, the regional economic activity maintained, in April 2026, a positive growth trajectory, showing a further acceleration compared with the previous month. This performance reflects the favourable trend of the main economic indicators in the period under review.

In the tourism sector, the number of overnight stays in tourist accommodation establishments (which does not include local accommodation with fewer than 10 beds) recorded a slight decrease of 0.4%, representing a less pronounced contraction than that observed in the previous month (-1.8%). In contrast, total revenue increased by 10.6%, maintaining a positive trend, albeit at a slightly slower pace than that recorded in March (11.0%). RevPAR continued to show a slowdown, growing by 5.8%, after the 7.0% change recorded in the previous month. In turn, the net bed occupancy rate increased to 67.6%, surpassing the 62.5% recorded in March.

In the energy sector, electricity distribution maintained a favourable trend, recording growth of 4.8%, although lower than that observed in the previous month (5.3%). In turn, the diesel release for consumption increased by 0.4%, compared with the growth of 2.6% recorded in March.

With regard to business dynamics, the ratio of newly incorporated to dissolved companies stood at 2.3 new companies for every dissolution, a value lower than that recorded in the previous month (3.1).

Qualitative Indicators

In April 2026, confidence indicators showed a favourable trend in Manufacturing Industry and Services. In contrast, in Trade and Construction and Public Works, these indicators declined, reflecting a slowdown in business expectations in these sectors.

Private Consumption

In the month under review, the release for consumption of gasoline recorded a year-on-year change of 9.3%, slightly lower than that observed in March (9.5%), interrupting the accelerating trend observed in the two previous months.

The balance of loans granted to households and non-profit institutions serving households (NPISH) for consumption and other purposes increased by 9.1%, recording a slight slowdown compared with the previous month (9.4%). In turn, withdrawals and purchases made through automatic payment terminals (APT) with national cards grew by 5.5%, accelerating compared with the 4.8% recorded in March.

With regard to sales of light passenger vehicles, a year-on-year decrease of 9.6% was recorded, representing a less pronounced contraction than that observed in the previous month (-11.3%).

Investment

In April 2026, investment indicators showed a mixed trend.

Sales of light commercial vehicles decreased by 23.4%, reversing the 16.4% growth recorded in March. Similarly, the balance of loans granted to non-financial corporations decreased by 2.3%, worsening the 0.6% decrease observed in the previous month.

Conversely, cement sales increased by 3.7%, accelerating compared with the 0.9% growth recorded in March. The balance of housing loans granted to households and NPISH also grew by 9.1%, maintaining a pace of expansion similar to that observed in the previous month (9.0%).

In turn, bank appraisals for housing recorded an increase of 17.3%, although at a slower pace than that observed in March (19.1%).

With regard to the number of building permits, a growth of 31.9% was recorded, reinforcing the expansion trend observed in the previous month, when this indicator increased by 13.3%.

External Demand

In April 2026, regional exports of goods decreased by 0.6%, representing a considerably less pronounced contraction than that observed in the previous month (-4.2%). In turn, imports of goods increased by 17.7%, showing a significant slowdown compared with the 58.4% growth recorded in March.

The movement of goods in the Region's ports maintained a favourable trend, recording growth of 7.3%, higher than that observed in the previous month (5.6%), reinforcing the expansion trajectory of this indicator.

In air transport, passenger traffic at regional airports continued to show positive performance, increasing by 3.2%, although at a slower pace than that recorded in March (4.0%).

With regard to withdrawals and purchases made through automatic payment terminals (APT) with international cards, growth of 1.6% was recorded, reversing the negative change observed in the previous month (-0.9%).

Labour Market

In April 2026, the number of registered unemployed decreased by 4.9%, maintaining the downward trend observed in previous months, although less pronounced than in March (-6.5%).

Job applications decreased by 4.0%, continuing the downward trajectory, albeit with less intensity than in the previous month (-6.0%).

In turn, job offers increased by 5.6%, reinforcing the growth recorded in March (1.8%).

Prices

The year-on-year rate of change of the Consumer Price Index (CPI) increased to 3.7% in April 2026, after 3.2% recorded in the previous month.

Inflation in goods accelerated to 3.7% (2.2% in March), while inflation in services slowed to 3.7% (4.4% in the previous month).

The underlying inflation indicator, which excludes unprocessed food and energy products, decreased to 2.7%, after 2.9% observed in March.

For further information, please access:

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

 

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