In December 2022
Regional economic activity growth was lower than in the previous month
The Regional Indicator Economic Activity Indicator (RIEA) shows that in December 2022 the regional economic activity grew, although not as pronounced as in the previous month.
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 December 2022 from 6 topics
DREM presents a brief analysis of the main short-term indicators, broken down by themes.
Economic activity
As mentioned above, the regional economic activity in December 2022, although growing, slowed down compared to the previous month.
The performance of the tourism sector made an important contribution to economic growth, as overnight stays (excluding local accommodation under 10 beds) rose by 26.1% in that month, up from 19.9% recorded in November.
Electricity distribution – an indicator associated with the evolution of economic activity - registered a growth of 0.3% in December 2022, below the value verified in the previous month (+0.8%). On negative territory continues diesel consumption, which, in December, fell again (-3.4%), although at a lower level than in the previous month (-5.3%).
Analysing the ratio of incorporated and dissolved companies, in December 2022, for each company dissolved in the Region, 1.3 new companies were incorporated, the lowest ratio of the year.
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. Observing the amounts of withdrawals and purchases with national cards, through automatic payment terminals, there is a growth of 13.2% in December 2022, maintaining an acceleration trend that has been going on since last October.
The gasoline released for consumption also accelerated, with the year-on-year change standing at +7.0% in December, when it had been +5.9% in November.
Sales of new light passenger cars showed a similar trend in the month under reference, growing by +23.0% year-on-year, up from +5.4% in the previous month.
Investment
As for investment, in December 2022, the indicators are divided into two blocks, which diverge in their evolution: while the bank evaluation of housing (+14.0%; +11.9% in the previous month) and the balance of loans for housing ( +2.5%; +2.7% in November) are on the rise, sales of new light cargo vehicles (-65.6%, -71.4% in the previous month), cement (-15.4% ; -11.4% in November), building licensing (-9.9%; 0.0% in the previous month) and the balance of loans granted to non-financial corporations (-2.6%; -2.4% in the month above) are falling.
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 (+11.4%), and imports of goods decreased (-29.3%). The movement of goods in ports (-0.9%, +2.1% in the previous month), the wider indicator of the dynamics of trade with foreign countries, decreased. In the remaining indicators, and in December 2022, the data show that there is an acceleration in the movement of passengers at airports (+43.9%, +38.4% in the previous month) which is in line with withdrawals and purchases, with international cards, through automatic payment terminals (+31.1%, +27.4% 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 December 2022, an increase in job offers (+5.2%), job applications (+13.7%) as well as in the registered unemployed during the month (+15.8%).
Prices
In December 2022, the year-on-year inflation rate stood at +7.8%, being sharper for goods (+9.7%) than for services (+5.1%). The underlying inflation rate (which excludes unprocessed food and energy) was +7.3%.
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