In August 2025

Regional economy maintained its growth, although at a slightly slower pace

The Regional Indicator of Economic Activity (RIEA) shows that, in August 2025, regional economic activity continued its growth trajectory, albeit with signs of moderation.

Since the first release of the RIEA in October 2017, DREM has highlighted that 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 August 2025

Economic Activity

In August 2025, the regional economic activity continued to grow, albeit with signs of moderation.

The number of overnight stays in tourist accommodation increased by 5.2%, maintaining the pace observed in July. Total revenue rose by 19.0%, slightly slowing compared to 20.4% in the previous month, while the RevPAR decreased to 16.8% from 18.2% in July.

Electricity distribution recorded a slight positive change of 0.8%, below the 1.4% seen in July. Diesel released for consumption remained relatively stable, increasing by 1.0%, close to the values of the two preceding months (+1.1% in both).

The ratio of newly incorporated to dissolved companies fell to 2.7 new companies per dissolution, down from 3.2 in July.

Qualitative Indicators

Confidence indicators rose only in the Construction and Public Works sector, while decreases were observed in Commerce, Services, and Manufacturing.

Private Consumption

Gasoline released for consumption continued to grow in August 2025, rising by 10.9%, matching June’s level and above the 10.3% registered in July.

The balance of loans for consumption and other purposes granted to households and non-profit institutions serving households increased by 8.4%, similar to the previous month (8.5%).

Payments via national debit and credit cards increased by 8.8%, accelerating from 7.9% in July and extending the positive trend from previous months.

Purchases of new light passenger cars decreased by 15.2% year-on-year, after two consecutive months of growth (3.8% in June and 4.4% in July).

Investment

Indicators of investment showed mixed developments in August 2025.

Sales of light commercial vehicles fell by 17.1%, reversing the strong 20.4% growth seen in July.

The balance of loans granted to non-financial corporations slightly declined by 0.1%, after a 4.1% contraction in the previous month.

Cement sales remained negative, but the decline eased, from -5.7% in July to -3.3% in August.

The median value of bank appraisals for housing continued to rise, increasing by 16.7%, slightly above July’s 16.1%.

The number of buildings permits rose sharply, by 48.9% in August 2025, accelerating from 38.8% in July.

External Demand

Regional exports of goods grew by 54.1% in August 2025, remaining at very high levels, though below July’s 63.4%.

Imports decreased further by 11.5%, deepening the decline from 11.2% in July.

The movement of goods in ports remained negative, but the decline in August (-1.1%) was slightly lower than in July (-1.4%).

Passenger traffic at airports accelerated to 16.1% in August, up from 14.6% in July.

Payments via international cards increased by 8.1% in August, though at a slower pace than in previous months (+13.1% in June and +10.6% in July).

Labour Market

Registered unemployment decreased by 11.4% in August 2025, slower than in July (-14.8%) and June (-16.3%).

Job applications also fell by 10.6%, after a 14.3% decrease in July.

Job offers continued to grow, increasing by 11.1%, slightly below July’s 11.8% but well above June’s 3.2%.

Prices

The year-on-year Consumer Price Index (CPI) increased by 3.3% in August 2025, slightly above July’s 3.2%.

Inflation in goods rose to 2.6% (from 2.2% in July), while services inflation slowed to 3.8% (from 4.3%).

The underlying inflation indicator, excluding unprocessed food and energy, decreased to 2.5%, down from 2.8% in July.

For more information, visit:

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

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