In January 2022

Madeira’s economy reversed trend with growth picking up

The Regional Indicator of Economic Activity (RIEA) shows that, in January 2022, the economy activity reversed the trend, recording a growth acceleration.

As mentioned in the first release of RIEA, in October 2017, its purpose is “to signal the behavior of economic activity, namely concerning its direction and magnitude of fluctuations: whether it is in the positive or negative ground, accelerations, decelerations and the identification of turning points”. Therefore, its quantitative value assumes secondary importance, not being a substitute for the volume change of the Gross Domestic Product - determined with a more varied and complete set of statistical information - although there is a strong correlation between the two variables.

Monthly Economic Survey - The economic situation of the Autonomous Region of Madeira in January 2022 by covering 6 topics

DREM continues the brief analysis of the main short-term indicators, started in the previous month's release. It should be noted that many of the indicators for January 2022 show a growth acceleration, which is due to the restrictions of economic activity in the same period of the previous year due to the COVID-19 pandemic.

Economic activity

As mentioned above, the RIEA in January 2022 reversed the slowdown in growth, which began in July 2021, with the RIEA of the reference month standing above November and December, being the same as in October 2021.

The recovery of the tourism sector was an important contributor to this performance, with overnight stays (excluding local accommodation under 10 beds) increasing by 260.6% in the month.

Electricity consumption - an indicator closely linked to the growth of economic activity - recorded a year-on-year change of 8.2% in January 2022, below the value of the previous month (8.5%), but above the values ​​of November and October (both with 8.0%; 8.2% in September).

When analysing the ratio of formed and dissolved companies, it is noted that in January 2022, for each dissolved company in the Region, 1.4 new companies were created, slowing down compared to the previous two months (3.5 in November and 2.2 in December).

Private consumption

One of the indicators that can be related to private consumption is the operations on the SIBS network with the cards issued by the national banks. Analysing the amounts of withdrawals and purchases through automatic payment terminals (APT) using this type of card, there is a robust growth of 10.8% in January 2022 (9.0% in the previous month), reversing the deceleration trend, which had taken place since June 2021.

The gasoline released for consumption also shows an upward trend, rising by 17.0% year-on-year (16.3% in December 2021).

Investment

The available indicators for investment are all on the rise in January 2022, with cement sales (+39.7%) standing out. The construction and housing sectors also show dynamism in terms of the number of buildings completed (+14.3%) and the balance of housing loans (+2.0%). The dynamism of the housing market continues to be reflected in prices, which rose by 9.4% in last January.

External demand

Although trade with foreign countries represents only a small part of the Region's total trade (the majority of it is with the mainland), it should be noted that both exports (+35.2%) and imports of goods (+24.6%) show the same trend as the movement of goods in ports (+21.1%), the most comprehensive indicator of the dynamism of trade with foreign countries. Among the indicators more related to the export of services, the growth of passengers in airports (+233.9%) and transit passengers on cruise ships, which, in January 2022, recorded movement, contrary to January 2021, in which no cruise ships docked.

Labour Market

Data from the organisations responsible for employment in the country and the Region show, in January 2022, an increase in job offers (+45.8%) and decrease in both job applications (-17.2%) and registered unemployed (-17.9%).

Prices

In January 2022, the year-on-year inflation rate continued to accelerate, reaching 3.0% (the highest value in the last 9 years, more pronounced for goods (+3.7%) than for services (+1.8%). The underlying inflation rate (excluding unprocessed food products and energy, the latter with a price increase of about 14.9%) was only 2.0%.

For more information, please click on:

• RIEA - In Focus (Portuguese only)

Back

• Prev
• Next