Funchal's Economic Growth Confirmed by New Report
Madeira GuideThe latest Economic Bulletin from Funchal confirms robust growth in the local economy, highlighting strengths in tourism and business while addressing ongoing challenges.
Funchal's Economic Landscape: A Year of Growth
The Câmara Municipal do Funchal has released its 2025 Economic Bulletin, painting a promising picture of the city's economic and social progress. The report highlights a year of notable growth in both the business and tourism sectors, while also identifying key challenges that need strategic focus.
In 2024, Funchal was home to 17,588 businesses, an increase from the previous year. The total business turnover reached €7.46 billion, with the Gross Value Added (GVA) rising to €2.46 billion. These figures underscore the vitality of Funchal's economic fabric, which remains a central driver of the regional economy.
Tourism: A Pillar of Funchal's Economy
Tourism continues to be a cornerstone of the local economy. In 2025, the city welcomed 1.33 million guests, accounting for 7.42 million overnight stays and generating €595.96 million in total revenue. These impressive statistics reinforce Funchal's status as the leading tourist destination within the Autonomous Region of Madeira.
Addressing Structural Challenges
Despite the positive trends, the Bulletin also highlights several structural challenges that Funchal must address. These include housing issues, demographic aging, and the management of local accommodations. The report stresses the need for strategic planning and public policies to ensure sustainable development.
For the first time, the Bulletin includes data on the Foreign Goods Trade Balance of the Autonomous Region of Madeira, offering a broader view of the region's economic trajectory.
The 2025 Economic Bulletin confirms Funchal's dynamic and competitive economy, while acknowledging the ongoing challenges that require strategic intervention.
Sources
Madeira Guide
Author