In November 2024

Regional economic growth accelerated

The Regional Indicator of Economic Activity (RIEA) shows that the regional economy experienced accelerated growth, reinforcing the trend observed in recent months.

 

Economic Overview – Analysis of the economic context of the Autonomous Region of Madeira in November 2024

The Regional Directorate of Statistics of Madeira (DREM) presents an analysis of key short-term economic indicators, grouped by theme. It is important to note that many of the changes mentioned are based on three-month moving averages, a methodology commonly used in publications of this nature to mitigate temporary fluctuations and highlight trends.

Economic Activity

In November, the regional economy expanded at a more accelerated pace, driven by tourism, with overnight stays in tourist accommodations increasing by 3.4%, exceeding the 1.1% recorded in October. Total revenues rose to 18.4%, surpassing the 14.1% growth in the previous month.

Electricity distribution, which is often associated with economic activity trends, recorded a 1.2% increase, accelerating from the 0.5% growth in October.

Regarding diesel released for consumption,  an increase of 2.3% was observed, exceeding the 0.5% growth recorded in October 2024.

The ratio of companies incorporated to those dissolved remained positive, with 3.6 new companies incorporated for every dissolution, improving on the ratio of 3.1 recorded in the previous month.

Qualitative Indicators

In November 2024, confidence indicators declined in the manufacturing industry, trade, and services sectors compared to the previous month, whereas confidence in construction and public works improved.

Private Consumption

The volume of transactions in the SIBS network using domestic bank cards, an indicator of private consumption, grew by 8.8% in value, exceeding the 7.6% recorded in October.

Gasoline released for consumption increased by 11.5%, following a 9.2% rise in the previous month. However, sales of new passenger cars fell by 20.4%, deepening the 7.5% decline observed in October.

The balance of consumer loans granted to households and non-profit institutions serving households rose to 6.4%, above the 6.2% of the previous month.

Investment

Investment indicators showed a mixed performance. Positive trends were observed in building permits, which rose by 34.4%, recovering from an 8.1% drop in October, while housing bank appraisals grew by 16.1%, surpassing the 14.1% of the previous month.

Sales of new light commercial vehicles rose 11.3%, though slowing down from the 27.3% growth in October.

Cement sales increased by 13.7%, slightly below the 15.2% recorded in the previous month.

Conversely, loans granted to non-financial corporations continued to decline, registering a 5.7% drop in November, following a 5.3% decrease in October.

External Demand

Although trade with foreign countries represents only a small proportion of the Region’s total trade (the majority of which is conducted with mainland Portugal), it is noteworthy that both exports (5.4%; 20.4% in October) and imports of goods (10.9%; 16.0% in the previous month) decelerated compared to the preceding month.

The movement of goods in ports rose by 5.5% in November, below the 6.9% growth recorded in the previous month.

Meanwhile, passenger traffic at airports grew by 5.6%, surpassing the 3.3% increase seen in October.

Withdrawals and purchases made using international bank cards at automated payment terminals (APTs) grew 15.1%, slightly slowing from the 16.1% increase in the previous month.

Labour Market

The job market saw an increase in job offers, which grew 17.4%, above the 11.9% recorded in October. The number of registered unemployed persons grew at a slower pace, reaching 5.3% (compared to 7.3% in October), while job applications decreased from 7.5% in October to 5.6% in November.

Prices

The year-on-year inflation rate recorded a slight slowdown in November 2024, settling at 3.1%, below the 3.2% recorded in the previous month. Inflation was lower for goods (2.0%) and higher for services (4.6%).

The underlying inflation indicator (which excludes unprocessed food and energy products) remained unchanged at 3.3%, the same value observed in October.

For more information, visit:

• RIEA - In Focus (Portuguese only)

 

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