In March 2023
Regional economy experienced an acceleration in economic activity
The Regional Indicator of Economic Activity (RIEA) reveals that economic activity in the Region gained momentum in March 2023, surpassing the pace of the previous month. As a result, the Region has now experienced 24 consecutive months of economic growth.
The primary objective of the RIEA, as stated in its initial release in October 2017, is to provide insights into the behaviour of economic activity, including its direction, magnitude of fluctuations, accelerations, decelerations, and turning points. However, it is important to note that the quantitative value of the RIEA is of secondary importance and should not be regarded as a substitute for the real change in Gross Domestic Product (GDP). The assessment of GDP relies on a more diverse and comprehensive set of statistical information, although there is a strong correlation between the RIEA and GDP.
Economic Overview - The economic situation of the Autonomous Region of Madeira in March 2023 based on six key themes
The Regional Directorate of Statistics of Madeira (DREM) provides a concise analysis of the primary short-term indicators categorized by theme.
Economic Activity
In March 2023, the regional economy displayed positive growth, with signs of acceleration compared to the previous month.
The tourism sector contributed significantly to economic growth, as overnight stays (excluding local accommodation under 10 beds) increased by 49.2% in that month, although slightly lower than the 57.9% observed in February.
Electricity distribution, which is often linked to economic activity, grew by 1.5% in March 2023, slightly lower than the previous month's growth (+1.9%). Diesel consumption also increased by 1.2%, surpassing the previous month's growth (+0.1%).
Regarding the ratio of newly incorporated and dissolved companies, in March 2023, for every dissolved company in the region, 2.2 new companies were incorporated, a lower ratio than the previous month (2.8).
Private Consumption
The indicator related to the operations of the SIBS network with cards issued by national banks provides insights into the evolution of private consumption. In March 2023, the aggregate of ATM withdrawals and purchases through automatic payment terminals made with national cards grew by 17.0%, maintaining the accelerating trend observed since last October.
Gasoline consumption also showed an acceleration, with a year-on-year change of +17.9% in March 2023, compared to +14.9% in the previous February.
Furthermore, sales of new light passenger cars also experienced significant growth in the reference month, increasing by +77.5% year-on-year, surpassing the +53.2% growth observed in the previous month.
Investment
With the exception of sales of new light goods vehicles (-32.5%; -41.0% in the previous month) and the balance of loans granted to non-financial corporations (-5.1%; -6.0% in the previous month), all investment indicators are showing growth in March 2023: housing bank appraisals (+15.9%; +16.4% in the previous month), housing loans (+1.1%; +1.4% in February), cement sales (+1.3%; -7.0% in February), and building permits (+1.6%; -4.8% in the previous month).
External Demand
Although foreign trade represents only a small share of the Region's overall trade (most of which is with the Mainland), it is worth noting that both exports (+18.4%) and goods imports (+32.1%) have grown. The movement of goods in ports (+5.9%; +4.8% in the previous month), which is a broader indicator reflecting the dynamics of foreign trade, also increased. In the remaining indicators, there was a deceleration in passenger movements at airports in March 2023, with a growth rate of +67.6% compared to the same period last year, which was lower than the growth rate of +73.9% observed in February. This deceleration is consistent with the evolution of withdrawals in ATM and purchases through international cards at automatic payment terminals, which had a growth rate of +46.3% in March 2023, lower than the growth rate of +49.0% in the previous month.
Labor Market
Data from employment authorities in the country and in the Region revealed a decline in job offers by 17.2%, a slight increase in job applications by 0.1%, and a rise in registered unemployed individuals throughout March 2023, with an increase of 1.6%. On the other hand, the average gross monthly earnings per worker experienced an increase of 7.8%, indicating an acceleration over the past four months.
Prices
In March 2023, there was a deceleration in the year-on-year inflation rate, which stood at +7.8%. This deceleration had a more significant impact on goods, with an inflation rate of +8.5%, compared to services, which had an inflation rate of +6.5%. The underlying inflation rate, which excludes non-processed food and energy products, was +7.3%.
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