In July 2025
Regional economic grew at a faster pace

The Regional Indicator of Economic Activity (RIEA) shows that the Region’s economic activity maintained its growth trajectory, recording an acceleration compared with the previous month.

As DREM noted in the first release of the IRAE, in October 2017, its objective is “to signal the behaviour of economic activity, namely with regard to its direction and the magnitude of fluctuations: whether the economy is in positive or negative territory, the presence of accelerations or decelerations, and the identification of turning points”. Its quantitative value, therefore, assumes a secondary importance and should not be regarded as a substitute for the actual change of Gross Domestic Product, which is determined using a broader and more comprehensive set of statistical information, notwithstanding the strong correlation between the two variables.

Economic Overview – Analysis of the Economic Situation of the Autonomous Region of Madeira in July 2025

Economic Activity

As previously mentioned, in July 2025, regional economic activity maintained its positive growth trajectory, showing a further acceleration compared with the previous month.

The number of overnight stays in tourist accommodation increased by 5.2%, slightly below the 5.6% recorded in June, while total revenue rose by 20.4%, also slowing from 21.3% in the previous month.

Electricity distribution recorded a positive change of 1.4%, decelerating from the 2.1% observed in June. Meanwhile, diesel released for consumption rose by 1.1%, maintaining the recovery trend that began in the previous May.

In turn, the ratio between companies incorporated and dissolved fell to 3.2 new companies per dissolution, below the ratio of 5.2 recorded in June.

Qualitative Indicators

In July 2025, confidence indicators showed positive developments in the Construction and Public Works, Trade, and Services sectors, while a decrease was observed in the Manufacturing Industry.

Private Consumption

Gasoline released for consumption maintained its growth trajectory, standing at 10.3%, slightly below the 10.9% observed in the previous June.

The balance of loans for consumption and non-profit institutions serving households increased by 8.5%, broadly in line with the previous month’s change (8.6%).

Cash withdrawals and purchases made through point-of-sale terminals (POS) using national cards rose by 7.9%, strengthening the positive trend observed in June (7.3%).

Finally, purchases of new light passenger cars recorded an increase of 4.4%, following the declines observed in April (-28.1%), May (-26.4%), and June (-16.2%).

Investment

Investment indicators continued to show mixed developments. Sales of light commercial vehicles rose by 20.4%, reversing the 13.0% decline recorded in June.

The balance of loans granted to non-financial corporations deepened its contraction to -4.1%, after a fall of 1.8% in the previous month.

Cement sales decreased by 5.7%, moderating the 7.2% drop recorded in June.

The median value of bank appraisal for housing continued to increase, although at a more moderate pace (+16.1% compared with +18.1% in the previous month).

The number of building permits registered a sharp rise of 38.8%, accelerating compared with the zero change observed in June.

External Demand

Regional exports increased by 63.4%, reinforcing the 55.4% growth achieved in June, while imports fell by 10.7%, following a slight positive change of 0.1% in the previous month.

The movement of goods through the Region’s ports decreased by 1.4% (4.8% in June).

Passenger traffic at regional airports rose by 14.6%, slightly below the 15.5% recorded in June.

Withdrawals and purchases via POS using international cards grew by 10.6%, showing a slowdown compared with the previous month (13.1%).

Labour Market

The number of registered unemployed decreased by 14.8%, following a 16.3% decline in the previous month.

Job applications fell by 14.3%, below the 15.8% decrease observed in June.

Job offers increased by 11.8%, accelerating from 3.2% in the previous month.

Prices

The year-on-year change rate of the Consumer Price Index (CPI) stood at 3.2% in July 2025, slightly above the 3.0% recorded in June.

The inflation in goods rose to 2.2% (1.9% in June), while for services it reached 4.3% (4.2% in the previous month).

The underlying inflation indicator increased to 2.8%, after 2.7% in June.

For more information, visit:

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

    

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