In August 2022
Madeira’s economy accelerated
The Regional Indicator of Economic Activity (RIEA) shows that in August 2022 the regional economy continued to grow, but at a faster pace, when compared to the previous month.
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 August 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 August 2022 show a growth deceleration due to the progressive normalization in economic activity that took place in the same period of the previous year.
Economic activity
As mentioned above, the RIEA shows that, in August 2022, the regional economic activity maintained its growth path, albeit at a faster 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 64.2% in that month.
Electricity distribution – an indicator closely associated with the economic activity – grew by 4.0% in August 2022 but decelerated when compared to the previous month (+7.0%). The diesel released for consumption decreased by 1.4% against the +0.9% recorded last July, reversing the upward trend that began in April 2021.
When analysing the ratio of formed and dissolved companies, it is noted that in August 2022, for each company dissolved in the Region, 1.5 new companies were created, very close to the levels of the first three months of the same year.
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 growth of 11.6% in August 2022 (12.3% in the previous month) confirming a deceleration movement, which has been seen since the last May.
The gasoline released for consumption also slowed down, rising by 7.1% year-on-year (9.6% in July 2022).
In turn, the loans for consumption and other purposes granted to households and non-profit institutions serving households dropped by 22.4% in August 2022.
The sales of new light passenger vehicles slowed down again in the month under reference, although it grew by 18.3% year-on-year (+35.0% in July).
Investment
With the exception of sales of light cargo vehicles (-52.9%), all other investment indicators are, in August 2022, growing; building permits (+29.9%), bank appraisals on housing (+12.5%), cement sales (+0.4%) 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 (+34.6%) and imports of goods (+32.7%) show the same trend as the movement of goods in ports (+12.6%), 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 (+72.7%) is in line with withdrawals and purchases, with international cards, through automatic payment terminals (TPA), +62.7% in August 2022 (+103.1% in the previous month).
Labour Market
Data from the employment agencies in the country and in the Region show, in August 2022, an increase in job offers (+12.8%) and a decrease in job applications (-9.4%) and registered unemployed (-8.4%).
Prices
In August 2022, the year-on-year inflation rate decelerated, reaching 8.2%, being more pronounced for services (+8.5%) than for goods (+7.8%). The underlying inflation rate (which excludes unprocessed food and energy) was 7.7%.
For more information, please click on: