In November 2023

Regional economy maintained growth, albeit with a slight deceleration

The Regional Indicator of Economic Activity (RIEA) revealed that in November 2023, regional economic activity continued its positive growth trajectory, albeit at a slower pace compared to the previous month.

As DREM mentioned in the initial release of the RIEA in October 2017, its objective is to "signal the behaviour of economic activity, particularly regarding the direction and magnitude of fluctuations: whether it is in a positive or negative trend, accelerations, decelerations, and the identification of turning points." Its quantitative value, therefore, assumes secondary importance, not presenting itself as a substitute for the actual change of Gross Domestic Product, to be determined with a more varied and comprehensive set of statistical information, although a strong correlation exists between the two variables.

Monthly Economic Survey – The economic situation of the Autonomous Region of Madeira in November 2023 from 6 topics

The Regional Directorate of Statistics of Madeira (DREM) presents a concise analysis of key short-term indicators divided into themes, emphasizing that many of the mentioned changes are in three-month moving averages, a common technique in economic bulletins to smooth irregularities and show trends.

Economic Activity

As mentioned earlier, regional economic activity in November 2023 continued its positive growth trajectory, showing signs of very slight deceleration compared to the previous month.

The performance of the tourism sector contributed to economic growth, as overnight stays (excluding local accommodation below 10 beds) increased by 5.7% this month, above the 3.5% recorded in the previous October. It is noteworthy that total revenue in tourist accommodation increased by 19.4% (18.0% in the previous October).

Electricity distribution, an indicator typically associated with economic activity, grew by 4.3% in November 2023, below the 5.4% observed in the previous month. Diesel consumption increased by 2.8% in November 2023, up from 0.5% in the previous October.

Analysing the ratio between newly formed and dissolved companies, it is observed that in November 2023, 2.0 new companies were formed for each company dissolved in the Region, a ratio higher than the previous month (1.8).

Private Consumption

One of the indicators revealing the evolution of private consumption refers to operations of the SIBS network, with cards issued by national banks. By observing the total amounts withdrawn from ATMs and purchases made through automatic payment terminals with national cards, there was a growth of 7.7% in November 2023, confirming the deceleration that began in the previous month (7.8%). Gasoline consumption maintained the same year-on-year change (+13.5%) as the previous month. In turn, purchases of new passenger vehicles by residents accelerated (a change of +65.3%, compared to +26.9% in the previous month). Consumer loans granted to households and non-profit institutions serving households decreased by 15.9% in November 2023, after falling by 16.3% in the two previous months.

Investment

In this domain, the indicators are divided into two groups: those showing positive signs, such as sales of light commercial vehicles (+29.1%; +3.8% in the previous October), housing bank appraisals (+20.6%; +22.6% in the previous month), cement sales (+15.2%; +10.1% last October), and building permits (+7.7%; +20.6% in the previous month); and those that are declining, such as loans granted to households for housing (-1.0%, -1.1% in the previous October) and the balance of loans granted to non-financial corporations (-6.4%; -6.0% in October 2023).

External Demand

Although trade with foreign countries represents only a small portion of the overall trade carried out by the Region (most of which is with the mainland), it is important to note that both exports (-5.8%) and imports of goods (-50.1%) decreased in this reference month. However, it is noteworthy that this negative change in imports is conditioned by the transaction of goods of significant value in 2022, which was not repeated in the same period of 2023. The movement of goods in ports (+7.2%; -1.9% in the previous month), which is a more comprehensive indicator of foreign trade dynamics, increased. In other indicators, in November 2023, it is observed that the acceleration in passenger movement at airports (+10.1%; +8.5% last October) is in line with the evolution of total withdrawals from ATMs and purchases through automatic payment terminals with international cards (+21.3%; +20.7% in the previous month).

Labour Market

Data from employment agencies in the Country and the Region show that in November 2023, there were reductions in job offers (-30.0%), job applications (-19.9%), and also in registered unemployed throughout the month (-19.8%).

Prices

In November 2023, the year-on-year inflation rate, which stood at +2.9%, decelerated compared to the previous month (+3.6%), being lower in goods (+1.5%) and higher in services (+5.1%). The underlying inflation (excluding non-processed food and energy products) was +3.7%.

For more information, please visit:

• RIEA - In Focus (Portuguese only)

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