Tourism Remains a Key Driver Amid Mixed Economic Signals
The Autonomous Region of Madeira's economy continued to grow in July 2024, although at a slower pace compared to previous months, according to the latest data from the Regional Directorate of Statistics of Madeira (DREM). The Regional Economic Activity Indicator (IRAE) for July 2024 indicates that while the economy maintained a positive growth trajectory, it did so at a reduced rate compared to June
Mixed Signals in Investment and Consumption
Investment indicators for July 2024 presented a mixed picture. While the bank valuation of housing grew by 17.1% and the balance of loans granted to families for housing increased by 0.6%, other indicators showed declines. Sales of light commercial vehicles fell by 40.2%, and the balance of loans granted to non-financial corporations decreased by 7.0%
The performance of the tourism sector contributed to economic growth, as overnight stays (excluding local accommodations with fewer than 10 beds) increased by 0.7% this month, although below the 1.1% recorded in the previous January. It is also worth noting that total revenues in tourist accommodations recorded an increase of 10.4% (12.8% in the last January).
Labor Market Faces Challenges
The labor market in Madeira showed some concerning trends in July 2024. Job offers decreased by 24.9%, while both job applications and the number of registered unemployed increased by 10.9% and 10.6% respectively. These figures suggest potential challenges in the region's employment landscape
While Madeira's economy continues to grow, the slowing pace, Madeira’s dependency on tourism and mixed indicators across various sectors suggest a need for careful monitoring of economic trends.
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