In December 2024

Regional economy accelerates for the fifth consecutive month

The Regional Indicator of Economic Activity (RIEA) revealed that in December 2024, the regional economic activity grew compared to the previous month, marking five consecutive months of acceleration.

Economic Overview – Analysis of the economic context of the Autonomous Region of Madeira in December 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 December 2024, the regional economy accelerated, driven by tourism, with the number of overnight stays in tourist accommodations increasing by 6.0%, surpassing the 3.4% recorded in November. Total revenue rose by 21.2%, exceeding the 18.4% of the previous month.

Electricity distribution, often linked to economic activity trends, grew by 2.2%, accelerating from the 1.2% increase observed in November.

Regarding diesel released for consumption, there was a growth of 3.8%, higher than the 2.3% recorded in November 2024.

The ratio of companies incorporated to those dissolved remained positive, with 2.7 new companies per dissolution, below the 3.6 ratio recorded in the previous month.

Qualitative Indicators

In December 2024, confidence indicators for the Manufacturing Industry, Commerce and Services sectors declined compared to the previous month, whereas an increase was observed in the Construction and Public Works sector.

Private Consumption

The volume of transactions in the SIBS network using national bank cards, a key indicator of private consumption, grew by 9.1% in value, above the 8.8% recorded in the previous month.

Gasoline released for consumption rose by 9.3%, following an 11.5% increase in the previous month.

However, sales of new passenger cars fell by 17.4%, mitigating the 20.4% decline recorded in November.

The balance of consumer loans granted to householdss and non-profit institutions serving households remained at 6.4%.

Investment

Investment indicators showed a generally favourable performance. Positive trends included building permits, which increased by 28.8%, and housing bank appraisals, which rose by 17.7%, exceeding the 16.1% growth in the previous month.

Sales of new light commercial vehicles saw a strong increase of 51.5%, accelerating from the 11.3% recorded in November.

Cement sales rose by 18.5%, surpassing the 13.7% increase in the previous month.

Conversely, loans granted to non-financial corporations continued to decline, with a 6.7% reduction in December 2024, following a 5.7% drop in November.

External Demand

Although foreign trade represents only a small portion of the total trade conducted by the Region (most of which is with the mainland it is worth noting that exports declined compared to November 2024 (-0.4%; 5.3% in November). Meanwhile,  imports of goods slowed, registering a 2.0% increase compared to the 13.2% rise in the previous month.

The movement of goods handled in ports increased by 3.5% in December 2024, below the 5.5% recorded in the previous month.

Meanwhile, passenger traffic at airports grew by 6.8%, exceeding the 5.6% recorded in November.

Withdrawals and purchases using international bank cards at automated payment terminals (APTs) increased by 15.6%, a slight rise compared to the 15.1% in the previous month.

Labour Market

In the labour market, job offers increased by 21.5%, above the 17.4% recorded in November 2024. The number of registered unemployed persons fell by 0.7% (compared to a 5.3% increase in November),while job applications decreased from 5.6% in November to -0.4% in December 2024.

Prices

The year-on-year inflation rate accelerated in December 2024, reaching 4.0%, above the 3.1% recorded in the previous month. Inflation was lower for goods ( 2.7%) and higher for services (5.8%).

The underlying inflation indicator (which excludes unprocessed food and energy products) rose to 4.2%, up from 3.3% observed in November 2024.

For more information, visit:

• RIEA - In Focus (Portuguese only)

 

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