In July 2022
Regional economy grew at a slower pace
The Regional Indicator Economic Activity Indicator (RIEA) shows that in July 2022 the regional economy continued to grow, although at a slower pace when compared to the previous month. It should be noted that the RIEA is based on a year-on-year change, so it is expected that the progressive economic recovery in 2021 will lead to less pronounced year-on-year changes as the months go by.
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 July 2022 from 6 topics
DREM continues the brief analysis of the main short-term indicators, which started in December 2021. It should be noted that many of the indicators for July 2022 show a deceleration in growth, which is due to the progressive normalization in economic activity that took place in the same period of the previous year.
Economic activity
As mentioned above, RIEA shows that, in July 2022, the regional economic activity maintained its positive growth path, albeit at a slower pace than in the previous month.
Almost all indicators in this chapter are in line, showing a deceleration.
The overnight stays (excluding local accommodation under 10 beds) maintained a pronounced growth of 138.3% in the month of reference but below the previous month (+290.5%).
In turn, electricity distribution – an indicator closely associated with economic activity – although growing by 7.0% in July 2022 slowed down compared to the previous month (+10.6%). The diesel released for consumption grew only by 0.9% in July 2022, well below the 7.4% recorded in June.
When analysing the ratio of formed and dissolved companies, it is noted that in July 2022, for each company dissolved in the Region, 2.1 new companies were created (2.4 in the previous month).
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 12.3% in July 2022, although at a lower rate than the previous month (15.2%), thus confirming the slowing growth trend which began in May 2022.
The gasoline released for consumption also slowed down, rising by 9.6% year-on-year (14.6% in June 2022).
The sales of new light passenger vehicles also slowed down despite growing by 35.0% (45.5% in June 2022).
Investment
With the exception of the sales of cargo vehicles, all other investment indicators were, in July 2022, on the rise; building permits (+50.5%), bank appraisals on housing (+12.0% reaching an all-time high), cement sales (+5.0%) and home loans (+3.6%).
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 (+31.5%) and imports of goods (+26.3%) show the same trend as the movement of goods in ports (+10.1%), 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 (+133.9%) is in line with withdrawals and purchases, with international cards, through automatic payment terminals (TPA), +103.1% in July 2022 (+163.0% in previous month).
Labour Market
Data from the employment agencies in the country and in the Region show, in July 2022, an increase in job offers (+7.4%) and a decrease in job applications (-16.4%) and registered unemployed (-15.9%).
Prices
In July 2022, the year-on-year inflation rate decelerated, reaching 8.5% (8.8% in June of the same year), being more pronounced for goods (+9.1%) than for services (+7.5%). The underlying inflation rate (which excludes unprocessed food and energy) was 7.2%.
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