Madeira’s GDP Has Quadrupled from €1.7 Billion to €6.99 Billion Since 1995
The Gross Domestic Product (GDP) of Madeira, Portugal's autonomous region, has increased significantly over the past 28 years. From €1.77 billion in 1995, it grew to €6.99 billion in 2023, marking a quadrupling of the region’s economic output.
GDP Expected to Exceed €8 Billion by the End of 2025
According to a recent report from the Regional Directorate of Statistics, Madeira’s economy continues to grow and is expected to exceed €8 billion by the end of this year.
While Madeira’s GDP has shown consistent growth, the report highlights that there were fluctuations, particularly during the 2009-2013 economic crisis and the COVID-19 pandemic, which caused temporary declines. Nevertheless, the region has shown resilience, and its GDP growth has been steadily rising in recent years.
We have a middle class that is getting poorer, and why? Because inflation is very high, salaries have not kept up with the inflation rate, and taxes need to be significantly reduced.
José Manuel Rodrigues, back then President of the Regional Legislative Assembly of Madeira (2019-2025), RTP Madeira
GDP Per Capita in Madeira Increases From €7,200 to €27,400
Madeira’s GDP per capita has also seen significant growth. In 1995, the GDP per capita was just €7,200, but by 2023, this had increased to €27,400. This growth in income per person reflects the region's overall economic development.
The regional government has pointed out that these improvements in GDP and GDP per capita come as a result of structural changes in the economy, including a growing focus on services and tourism, which have outpaced the more traditional industries such as agriculture and manufacturing.
Disparity Index: Despite Exceptional GDP Growth, Madeirans Lose Disposable Income Nationwide
However, the Disparity Index shows the full picture of Madeira's economic development, highlighting the stunning development of the gap between Madeira and Portugal’s disposable household income.
Despite much better GDP numbers, Madeira is falling further behind in terms of gross disposable income per inhabitant, which in 2021 was at the lowest ever and new numbers have not yet been released.
This is happening even though Madeiran economic output per inhabitant, adjusted for inflation and compared with the Portuguese average, has increased substantially over time.
Gross Disposable Income (GDI) per inhabitant: Average income households have after taxes and social contributions, available for consumption or saving, reflecting economic well-being per person.
Disparity index of GDI (PT=100): Measures household income differences relative to Portugal’s average (set at 100), indicating regional or social income inequality. It shows that Madeira's relative economic performance has not kept up with the national average, so the phrase "loses traction" is appropriate in this case
RGDP per Inhabitant: Measures the total economic output (real GDP) produced per person, adjusted for inflation, indicating individual economic productivity in a region.
Disparity Index of RGDP per Capita (PT=100): Compares a region’s RGDP per capita to Portugal's average (set at 100), showing relative economic performance and productivity differences.
Year | RGDP per inhabitant in Madeira | Disparity index of the RGDP per capita (PT=100) | Gross Disposable Income of households per inhabitant in Madeira | Disparity index of the GDI of households per inhabitant (PT=100) |
1995 | 7.200 | 81.5 | 6.645 | 101.9 |
1996 | 7.700 | 82.0 | 6.945 | 101.8 |
1997 | 8.400 | 82.9 | 7.507 | 104.1 |
1998 | 9.400 | 86.0 | 8.029 | 102.7 |
1999 | 10.300 | 87.8 | 8.380 | 101.0 |
2000 | 11.200 | 89.6 | 8.691 | 99.4 |
2001 | 11.500 | 87.7 | 9.202 | 100.9 |
2002 | 12.900 | 94.0 | 9.936 | 104.4 |
2003 | 13.400 | 95.6 | 10.349 | 105.8 |
2004 | 14.400 | 98.9 | 10.887 | 108.1 |
2005 | 15.100 | 100.2 | 11.033 | 105.2 |
2006 | 15.800 | 100.0 | 11.395 | 105.3 |
2007 | 16.400 | 98.7 | 11.631 | 102.8 |
2008 | 16.900 | 99.5 | 12.465 | 106.1 |
2009 | 16.300 | 98.5 | 11.865 | 100.6 |
2010 | 16.600 | 97.6 | 11.685 | 97.5 |
2011 | 16.700 | 100.0 | 11.536 | 98.4 |
2012 | 15.400 | 96.3 | 11.202 | 97.6 |
2013 | 15.800 | 96.9 | 11.015 | 96.5 |
2014 | 16.200 | 97.1 | 10.878 | 95.2 |
2015 | 16.700 | 96.5 | 11.154 | 94.0 |
2016 | 17.500 | 97.0 | 12.131 | 98.3 |
2017 | 18.800 | 98.8 | 12.498 | 97.8 |
2018 | 19.400 | 97.4 | 12.985 | 97.3 |
2019 | 20.200 | 96.8 | 13.362 | 95.8 |
2020 | 17.500 | 89.9 | 12.893 | 93.8 |
2021 | 19.800 | 94.3 | 13.544 | 93.6 |
2022 | 23.700 | 100.6 | not released | not released |
Comparing Madeira’s Rise in GDP with the Portuguese Average
Madeira's GDP has grown by 295% since 1995, compared to Portugal’s 168% increase over the same period. Madeira’s contribution to Portugal’s overall economy thus accounts for 2.6% of Portugal’s total GDP, up from 2.0% in 1995.
However, between 1995 and 2021, the average disposable household income in Madeira fell by 8.3% compared to the national average in Portugal, highlighting a significant loss in relative economic well-being.
This disparity index proves that despite impressive GDP growth, the benefits are exceptionally unevenly distributed. Despite the extreme economic success, outpacing the Portuguese average, income levels have even failed to keep up.
Country | GDP in 1995 | GDP in 2023 | Increase (%) |
Madeira | €1.77 billion | €6.99 billion | +295% |
Portugal | €105.3 billion | €282.0 billion | +168% |
United Kingdom | $1,340 billion | $3,380 billion | +151.7% |
France | $1,590 billion | $3,050 billion | +91.3% |
Germany | $2,590 billion | $4,520 billion | +74.5% |
These numbers are not only a threat to social cohesion, they reflect a change that is set to destroy society over time. We are already seeing early developments: the questioning of democratic institutions and a desperate, radical turn away from the values of the Third Republic toward populism.
Sources: RTP Madeira, Estatistica.madeira.gov.pt
Care for a share?
Comments