In February 2025

Regional economy maintained growth, although at a slower pace than in the previous month

The Regional Indicator of Economic Activity (RIEA) shows that, in February 2025, regional economic activity maintained its positive growth trajectory, although at a slower pace than recorded in the previous month.

As previously stated by the Regional Directorate of Statistics of Madeira (DREM) in the initial release of the RIEA in October 2017, the objective of this indicator is “to signal the behaviour of economic activity, particularly with regard to its direction and the magnitude of its fluctuations: whether the economy is in positive or negative territory, and to identify accelerations, decelerations, and turning points.” Its quantitative value is therefore of secondary importance, and it should not be interpreted as a substitute for the actual change in Gross Domestic Product (GDP), which is to be determined using a broader and more comprehensive set of statistical information, although a strong correlation exists between the two variables.

Economic Overview – Analysis of the economic context of the Autonomous Region of Madeira in February 2025

The Regional Directorate of Statistics of Madeira (DREM) presents an analysis of the main short-term economic indicators, grouped by theme. It is important to note that many of the changes presented correspond to three-month moving averages - a methodology often employed in publications of this nature to smooth out short-term fluctuations and highlight underlying trends.

Economic Activity

In February 2025, the regional economy maintained its growth trajectory, albeit at a more moderate pace. The number of overnight stays in tourist accommodation increased by 7.1%, slowing down compared to the 8.5% recorded in January 2025. Total revenue also showed significant growth, at 23.3%, although below the 26.0% of the previous month.

Electricity distribution, often associated with the evolution of economic activity, registered an increase of 2.5%, also decelerating compared to 3.5% in January.

As for diesel released for consumption, there was a 1.1% increase in February 2025, lower than the 2.6% recorded in January and the 3.8% observed in December 2024.

The ratio between companies incorporated and dissolved remained positive in February 2025, with 3.0 new companies for each dissolution, a figure higher than in the previous month (2.7).

Qualitative Indicators

In February 2025, confidence indicators declined in the Manufacturing, Trade, Construction and Public Works sectors compared to the previous month, while confidence in the Services sector improved.

Private Consumption

In February, the volume of transactions on the SIBS network with national bank cards grew by 7.8% in value, representing a slowdown compared to the 8.8% recorded in January 2025.

Gasoline released for consumption increased by 5.5% in February 2025, a lower figure than in the previous month (9.5%).

The purchases of new light passenger cars reversed the previous downward trend, registering a growth of 1.9%, after a decrease of 12.4% in January.

The balance of consumer loans increased by 6.9%, above the 6.3% seen in the previous month.

Investment

In February 2025, investment indicators showed mixed behaviours.

Sales of light commercial vehicles recorded a sharp increase of 44.4%, accelerating from the 34.7% seen in the previous month.

The median value of bank appraisals for housing grew by 14.9%, slightly below the 15.8% recorded in the previous month.

Cement sales rose by 4.0%, surpassing the 3.3% recorded in January.

Conversely, loans granted to non-financial corporations continued to fall, with a decrease of 6.3%, less pronounced than the 6.7% reduction seen in the previous month.

Finally, the number of building permits experienced a significant drop of 19.9%, after having increased by 6.2% in January.

External Demand

Although foreign trade represents only a small proportion of the Region’s total trade (with most exchanges carried out with mainland Portugal) it is worth noting that in February 2025 exports recorded a sharp increase of 21.7%, accelerating compared to the 5.1% growth observed in January. Imports, in turn, deepened the downward trend, registering a decrease of 17.5%, after a reduction of 3.8% in the previous month.

The movement of goods in ports fell by 1.0% in February 2025, maintaining the negative trend observed in the previous month (1.1%).

Passenger traffic at the Region’s airports, however, continued to grow, with a 6.5% increase in February, although at a slower pace than in January (+8.7%).

As for withdrawals and purchases with international cards, there was a 14.3% increase in February 2025, slightly below the 14.7% of the previous month.

Labour Market

In the labour market, job offers increased by 12.1%, above the 9.3% observed in the previous month. The number of registered unemployed persons fell by 5.7%, accelerating the downward trend that began in November 2024. Job applications also decreased by 4.6%, after a 3.6% drop in the previous January.

Prices

The year-on-year inflation, as measured by the Consumer Price Index (CPI), slowed to 4.1% in February 2025, after reaching 4.3% in January. Inflation in goods remained at 2.8%, as in the previous month, while inflation in services fell to 5.7%, compared to 6.3% in January.

The underlying inflation indicator stood at 4.3%, slightly below the 4.5% of the previous month.

For more information, visit:

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• RIEA - In Focus (Portuguese only)

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