In November 2022
Regional economy continued to grow although at a slower pace
The Regional Indicator of Economic Activity (RIEA) shows that in November 2022 the regional economy grew, despite having slowed down.
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 November 2022 from 6 topics
DREM presents a brief analysis of the main short-term indicators, broken down by themes.
Economic activity
As mentioned above, regional economic activity in November 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 19.9% in that month, however, below the 21.8% of October.
Electricity distribution – an indicator closely associated with the performance of economic activity - grew by 0.8% in November 2022, slightly above the value of the previous month (+0.7%). In negative territory is diesel consumption, which, in November 2022, fell again (-5.3%), and in a higher proportion than the previous month (-4.1%), thus giving continuity to a trend that started last April, the first of deceleration and then, from August, of fall.
When analysing the ratio of incorporated and dissolved companies, the available data show that in November 2022, for each company dissolved in the Region, 1.6 new companies were incorporated, which is a ratio higher than that seen in the immediately preceding 3 months.
Private consumption
One of the 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 year-on-year growth of 12.7% in November 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 5.9% in November, compared to 7.2% in October 2022.
Sales of new light passenger cars increased in the month in question, +5.4% year-on-year (+19.0% in the previous month).
Investment
As for investment, in November 2022, the indicators are divided into two blocks, with opposite trends: while bank appraisals on housing (+11.9%; +11.0% in the previous month) and housing loans (+2.7%; +3.1% in October) are on the rise, sales of new light cargo vehicles (-71.4%, -65.8% in the previous month), cement (-11.4%; -9.6% in October) and loans granted to non-financial corporations (-2.4%. -3.2% in the previous month) are falling. Building licensing did not change when compared with the same month of the previous year, whereas, in the previous month, it was recorded an increase of 9.2%.
External demand
Although trade with foreign countries is only a small share of the overall trade carried out by the Region (most of which with the Mainland), it should be noted that exports grew (+22.4%) but imports of goods decreased (-32.6%). The movement of goods in ports (+2.2%, +6.8% in the previous month), the wider indicator about the dynamics of trade, grew, although decelerating. In the remaining indicators, and in November 2022, the movement of passengers at airports increased (+38.4%, +38.5% in the previous month) despite decelerating, in line with withdrawals and purchases through automatic payment terminals with international cards (+27.4%, +30.0% 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 November 2022, a decrease in job offers (-7.3%). Contrary, job applications (+20.1%) and unemployed during the month (+21.3%) maintained the growth trend, which began last September.
Prices
In November 2022, the year-on-year inflation rate stood at 8.5%, accelerating compared to the previous month, being sharper for goods (+10.8%) than for services (+5.0%). The underlying inflation rate (which excludes unprocessed food and energy) was 7.2%.
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