In May 2022
Madeira’s economy kept growing although at a slower pace
The Regional Indicator Economic Activity Indicator (RIEA) shows that, in May 2022, the regional economic activity maintained its positive growth path, albeit at a slower pace than in the previous month.
As mentioned in the first release of RIEA, in October 2017, its purpose is “to signal the behaviour 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 May 2022 from 6 topics
DREM continues the brief analysis of the main short-term indicators, which started in the previous month's release. It should be noted that many of the indicators for May 2022 show a deceleration in growth, which is due to the progressive normalization in economic activity that occurred in the same period.
Economic activity
As mentioned above, RIEA shows that, in May 2022, the regional economic activity maintained its positive growth path, albeit at a slower pace than in the previous month.
The recovery of the tourism sector was an important contributor to this performance, with overnight stays (excluding local accommodation under 10 beds) increasing by 520.0% in that month.
Electricity distribution – an indicator closely associated with economic activity – grew by 13.4% in May 2022, although decelerating. The diesel released for consumption grew by 13.3% in May 2022, against the 18.9% recorded last April.
The ratio between formed and dissolved companies, for May 2022, was 1.8, representing a slight decrease compared to the previous month (2.1).
Private consumption
One of the indicators that can be related to private consumption comes from operation in the SIBS network with 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 16.1% in May 2022 (18.0% in the previous month).
The gasoline released for consumption also shows an upward trend, rising by 25.5% year-on-year (29.0% in April 2022).
In turn, the loans for consumption and other purposes granted to households and non-profit institutions serving households increased by 3.1% in May 2022.
Investment
All indicators available for the investment domain are growing in May 2022, with emphasis on the median value of bank appraisals on housing (+8.9%), cement sales (+7.8%) and new light cargo motor vehicles (+6.8%). The number of building permits grew by 3.9% and the balance of housing loans went up by 1.9%.
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 (+42.8%) and imports of goods (+33.4%) show the same trend as the movement of goods in ports (+16.0%), 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 (+398.8%) is in line with withdrawals and purchases through automatic payment terminals made with international cards, which grew by 193.9% in May 2022 (+198.5% in the previous month).
Labour Market
Data from the organisations responsible for employment in the country and the Region show, in May 2022, an increase in job offers (+100.2%) and a decrease in job applications and registered unemployed (both with -19.5%).
Prices
In May 2022, the year-on-year inflation rate accelerated, reaching 7.6%, being more pronounced for goods (+8.6%) than for services (+6.1%). The underlying inflation rate (which excludes unprocessed food and energy) was 6.1%.
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