In March 2025

Regional economy remained on a growth path, albeit at a slower pace

The Regional Indicator of Economic Activity (RIEA) shows that, in March 2025, the regional economy continued its growth trajectory, although signs of moderation were observed.

As previously stated by the Regional Directorate of Statistics of Madeira (DREM) in the initial release of the RIEA in October 2017, the objective of this indicator is “to signal the behaviour of economic activity, particularly with regard to its direction and the magnitude of its fluctuations: whether the economy is in positive or negative territory, and to identify accelerations, decelerations, and turning points.” Its quantitative value is therefore of secondary importance, and it should not be interpreted as a substitute for the actual change in Gross Domestic Product (GDP), which is to be determined 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 in the Autonomous Region of Madeira in March 2025

The Regional Directorate of Statistics of Madeira (DREM) presents an analysis of the main short-term conjunctural indicators, grouped by theme. It is worth noting that many of the changes mentioned are three-month moving averages, a methodology frequently used in publications of this nature to smooth out temporary fluctuations and highlight underlying trends. 

Economic Activity
In March 2025, the regional economy maintained its growth trajectory, although with signs of deceleration.
Overnight stays in tourist accommodations increased by 4.8%, slowing down from the 7.1% recorded in February. Total revenue grew by 20.6%, also below the 23.3% recorded in the previous month.
Electricity distribution rose by 2.8%, slightly above the 2.5% observed in February. Conversely, diesel released for consumption fell by 1.0%, following a 1.1% increase in the previous month.

The ratio between newly incorporated and dissolved companies improved the positive balance, with 4.6 new companies for every dissolution, compared to 3.0 in February.

Qualitative Indicators
In March 2025, confidence indicators showed divergent trends: there were improvements in Trade and Services, while confidence declined in Manufacturing and in Construction and Public Works.

Private Consumption
The volume of transactions on the SIBS network with national bank cards rose by 7.5% in value in March, indicating a slight deceleration from the 7.8% growth seen in February.
Gasoline released for consumption increased by 6.2%, slightly above the 5.5% of the previous month.
The purchases of new light passenger cars maintained a modest growth of 1.8%, in line with the 1.9% seen in February.
The balance of loans for consumption and other purposes rose by 7.3%, surpassing the 6.9% recorded in the previous month. 

Investment
Investment indicators showed mixed behaviours.
Sales of light commercial vehicles increased by 9.8%, a sharp deceleration compared to the 44.4% growth in February.
The median value of bank appraisals for housing increased by 15.9%, recovering from the slight deceleration observed in the previous month.
Cement sales fell by 3.6%, following a 4.0% increase in February.
The balance of loans granted to non-financial corporations decreased by 3.5%, easing the 6.3% contraction recorded in the previous month.
The number of buildings permits declined by 14.3%, after a 19.9% drop in February. 

External Demand
In March 2025, exports recorded a strong growth of 32.8%, accelerating from the 20.9% observed in February.
Imports decreased by 17.3%, maintaining the downward trend already seen in the two preceding months (-2.0% in January and -14.3% in February).
The movement of goods through ports rose by 2.3%, reversing the 1.0% contraction recorded in February.
Passenger traffic at airports grew by 6.7%, slightly above the 6.5% of the previous month.

Lastly, ATM withdrawals and purchases with international cards increased by 12.0%, below the 14.3% recorded in February.

Labour Market

Job offers increased by 21.8%, above the 12.1% recorded in February.
The number of registered unemployed persons decreased by 2.7%, a less pronounced decline than the 5.7% recorded in February. 

Prices
The year-on-year inflation, as measured by the Consumer Price Index (CPI), slowed slightly to 3.5% in March 2025, compared to 4.1% in February.
Inflation in goods fell to 2.4% (2.8% in February), while inflation in services fell to 5.0%, below the 5.7% recorded in the previous month.
The underlying inflation indicator stood at 3.4%, down from 4.3% in the previous month.

For more information, visit:

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

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