In May 2026
Regional economic growth slowed down
The Regional Indicator of Economic Activity (RIEA) shows that economic activity in the Region maintained its growth trajectory, although at a slower pace than in the previous month, bringing to an end three consecutive months of acceleration.
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 May 2026
Economic Activity
As previously noted, regional economic activity maintained a growth trajectory in May 2026, although at a slower pace than in the previous month, bringing to an end three consecutive months of acceleration.
In the tourism sector, the number of overnight stays in tourist accommodation establishments — excluding local accommodation establishments with fewer than 10 beds — decreased by 1.3%, deepening the decline recorded in April (-0.4%). Total revenue increased by 8.1%, maintaining a positive trend, although at a slower pace than in the previous month (10.6%). RevPAR continued to decelerate, growing by 4.8%, following the 5.8% increase recorded in April. Meanwhile, the net bed occupancy rate remained unchanged at 67.6%.
In the energy sector, electricity distribution increased by 3.9%, slowing from the 4.8% growth observed in the previous month. Diesel release for consumption, in turn, decreased by 0.2%, reversing the slight increase recorded in April (0.4%).
With regard to business dynamics, the ratio of newly incorporated to dissolved companies stood at 2.5 new companies for each dissolution, above the figure recorded in the previous month (2.3).
Qualitative Indicators
In May 2026, confidence indicators showed a favourable development in Trade and Services. In contrast, confidence declined in Manufacturing and Construction and Public Works.
Private Consumption
In the month under review, gasoline release for consumption increased by 6.9% year-on-year, slowing from the 9.3% growth recorded in April.
The outstanding balance of loans granted to households and non-profit institutions serving households (NPISHs) for consumption and other purposes increased by 8.7%, slightly below the figure observed in the previous month (9.1%). Meanwhile, withdrawals and purchases made through point-of-sale (POS) terminals using domestic cards increased by 6.3%, accelerating from the 5.5% recorded in April.
With regard to sales of light passenger cars, a year-on-year increase of 9.4% was recorded, accelerating from the 0.7% growth observed in the previous month.
Investment
In May 2026, investment indicators showed mixed developments, with unfavourable signals predominating.
Sales of light commercial vehicles increased by 10.3%, reversing the 21.9% decline recorded in April. Likewise, the outstanding balance of loans granted to non-financial corporations decreased by 2.5%, worsening the decline observed in the previous month (-2.3%).
Cement sales decreased by 1.6%, reversing the 3.7% growth recorded in April. In contrast, the outstanding balance of housing loans granted to households and NPISHs increased by 9.3%, slightly above the figure observed in the previous month (9.1%).
The bank appraisal value of housing increased by 17.3%, maintaining a positive trend, although at a slower pace than that recorded in April (19.1%).
The number of building permits increased by 21.2%, a less pronounced rise than that observed in the previous month (34.0%).
External Demand
In May 2026, regional exports of goods decreased by 6.8%, deepening the contraction observed in the previous month (-0.7%). Imports of goods, in turn, increased by 3.3%, slowing markedly from the 17.3% growth recorded in April.
The volume of goods handled in the Region’s ports maintained a positive trend, increasing by 5.3%, although at a slower pace than in the previous month (7.3%).
In air transport, passenger traffic at the Region’s airports increased by 3.4%, accelerating slightly from the 3.2% recorded in April.
Withdrawals and purchases made through APT terminals using international cards increased by 3.4%, above the growth observed in the previous month (1.6%).
Labour Market
In May 2026, the number of registered unemployed persons decreased by 5.2%, maintaining the downward trend observed in previous months and representing a slightly more pronounced decline than that recorded in April (-4.9%).
Job applications decreased by 4.5%, deepening the decline observed in the previous month (-4.0%).
Job offers, in turn, decreased by 5.9%, reversing the 5.6% increase recorded in April.
Prices
The year-on-year rate of change in the Consumer Price Index (CPI) increased to 4.6% in May 2026, following the 3.7% recorded in the previous month.
Inflation in goods slowed to 2.7% (3.7% in April), while inflation in services accelerated to 6.7% (3.7% in the previous month).
The underlying inflation indicator, which excludes unprocessed food products and energy goods, increased to 3.7%, following the 2.7% recorded in April.
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