INE<\/a>), \u201cthis slowdown particularly reflected the reduction in gross value added (GVA) from services provided to companies, associated with lower activity at the Madeira International Business Centre\u201d.<\/p>\nEven so, Madeira\u2019s GDP \u201cconverged for the fourth consecutive year with that of the European Union, reaching 88.3% of the EU27 (+4.7 p.p. more than in 2023 and +5.9 p.p. more than that recorded by Portugal)\u201d, the document states.<\/p>\n
The CFP also highlights that the regional public administration maintained a balanced budget and reinforced the downward trend in the public debt ratio.<\/p>\n
Despite the different budgetary positions, evidenced by the improvement in the positive balance of the Autonomous Region of Madeira (RAM) and the worsening of the deficit of the Autonomous Region of the Azores (RAA), the Regional Administration (AdR) as a whole maintained a balanced balance in relative terms, equivalent to 0.0% of Portugal\u2019s GDP, thus not contributing to the deterioration of the budget surplus of the General Government as a whole, which fell by 0.8 p.p. of GDP in 2024,” the report points out.<\/p>\n
The regional public debt ratio, as defined by Maastricht, continued on a downward trajectory, falling from 3% of GDP in 2023 to 2.9% in 2024, \u201cbenefiting for the second consecutive year from the contribution of both regions\u201d.<\/p>\n
Madeira recorded a more significant reduction, while the Azores continued the reduction in the debt ratio that began in 2023, according to the Public Finance Council.<\/p>\n
Regional public administration thus contributed to the decline in the national public administration debt ratio, which stood at 93.6% of GDP in 2024, \u201cthe lowest figure since 2010\u201d.<\/p>\n
The Azores archipelago recorded an increase in its budget deficit to 4.3% of regional GDP in 2024, compared to 2.5% in 2023, \u201cas a result of growth in regional public expenditure\u201d.<\/p>\n
The increase is partly linked to the integration of SATA Air A\u00e7ores, S.A. and SATA Gest\u00e3o de Aer\u00f3dromos, S.A. into the budgetary perimeter of this autonomous region in 2024, explains the CFP.<\/p>\n
Nevertheless, despite the worsening balance, the Azores\u2019 debt ratio, as defined by Maastricht, fell for the second consecutive year, decreasing by 0.6 percentage points of regional GDP to 59%, due to nominal growth in regional output.<\/p>\n
The regional debt of the Azores, which includes commercial debt, totalled \u20ac3.493 billion in 2024, corresponding to 60.7% of regional GDP,<\/p>\n
\u20ac177 million more than in 2023, \u201ccontinuing to represent a risk factor for the sustainability of regional finances\u201d.<\/p>\n
Madeira maintained a budget surplus of 2.3% of regional GDP, an improvement of two percentage points over 2023, entirely due to higher regional GDP.<\/p>\n
The debt ratio, as defined by Maastricht, stood at 65.8% of regional GDP, an improvement of six percentage points from 2023, the lowest level since 2009.<\/p>\n
\u201cThis improvement was explained by the dynamic effect of 3.7 p.p. of GDP, resulting from nominal growth in regional product exceeding the cost of interest and by the primary surplus of 3.6% of GDP, which more than offset the unfavourable effect of the deficit-debt adjustment (1.2 p.p. of GDP),\u201d indicates the CFP.<\/p>\n
Madeira\u2019s regional debt totalled \u20ac4.84 billion in 2024, \u20ac127 million less than in 2023, with \u201cthe largest contribution to this reduction coming from non-financial debt, at \u20ac73 million, reflecting the decrease in liabilities to suppliers and other creditors\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"According to the report \u201cBudgetary Evolution of the Autonomous Regions in 2024\u201d, the Gross Domestic Product (GDP) of…\n","protected":false},"author":2,"featured_media":373757,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-373756","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/373756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=373756"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/373756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/373757"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=373756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=373756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=373756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}