In October 2022
Madeira’s economy continued to grow, but with a slight slowdown
The Regional Indicator Economic Activity Indicator (RIEA) shows that in October 2022 the regional economy continued to grow, but at a slower 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 October 2022 from 6 topics
DREM presents a brief analysis of the main short-term indicators, broken down by themes. It should be noted that many of the indicators for October 2022 show a deceleration in growth, which is due to the progressive normalisation in economic activity that took place in the same period of the previous year.
Economic activity
As mentioned above, regional economic activity in October 2022, although growing, slowed down compared to the previous month.
The recovery of the tourism sector made an important contribution to that performance, as overnight stays (excluding local accommodation under 10 beds) rose by 21.8% in that month, however, below the 34.4% of September.
Electricity distribution – an indicator closely associated with the performance of economic activity – although growing (+0.7%), also decelerated compared to the previous month (+2.2%). On the opposite side stands the consumption of diesel, which, in October 2022, decreased by 4.1% (-4.9% in September), thus continuing a trend that began last April, first of deceleration and then, from August onwards, of decline.
When analysing the ratio of incorporated and dissolved companies, the available data show that in October 2022, for each company dissolved in the Region, 1.4 new companies were incorporated, the same ratio as in the first three months of this year, but lower than in the previous September and October (both with 1.5).
Private consumption
One of the revealing indicators of the evolution of private consumption is the operations of the SIBS network with cards issued by national banks. The data on the amounts of withdrawals and purchases through automatic payment terminals with national cards, shows that there is a growth of 11.8% in October 2022, thus reversing the deceleration which has been recorded since last May.
The growth of gasoline released for consumption slowed down, with the year-on-year change standing at 7.2% in October, compared to 8.3% in September 2022.
Sales of new light passenger cars increased in the month in question, +19.0% year-on-year (+5.4% in the previous month).
Investment
As for investment, in October 2022, the indicators are divided into two blocks, with opposite trends: while building licensing (+9.2%; +7.9% in September), bank appraisals on housing (+11.0%; +11, 8% in the previous month) and housing loans (+3.1%; 3.2% in September) are on the rise, sales of new light cargo vehicles (-65.8%, -66.9% in the previous month), cement (-9.6%; -5.9% in September) and loans granted to non-financial corporations (-3.0%. -3.6% in the previous month) are falling.
External demand
Although trade with foreign countries is only a small slice of the overall trade carried out by the Region (most of which with the Mainland), it should be noted that exports grew (+36.0%) but imports of goods decreased (-31.7%). The movement of goods in ports (+6.8%, +9.2% in the previous month), the most comprehensive indicator with regard to the dynamics of trade with foreign countries, grew, therefore, in line with exports. In the remaining indicators, and in October 2022, the movement of passengers at airports increased (+38.5%, +49.2% in the previous month) despite decelerating, in line with withdrawals and purchases through automatic payment terminals with international cards (+30.0%, +42.8% in the previous month).
Labour Market
Data from the organisations in charge of monitoring the labour market in the country and the Region show, in October 2022, an increase in job offers (+5.7%), job applications (+14.5%) as well as in the registered unemployed during the month (+15.9%).
Prices
In October 2022, the year-on-year inflation rate stood at 8.1%, being sharper for goods (+9.2%) than for services (+6.5%). The underlying inflation rate (which excludes unprocessed food and energy) was 7.3%.
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