«In 2024, The economic activity of the territory is without relief ", Comments the Institute for the issue of Overseas Departments in its annual summary for Reunion.
The business climate indicator falls by 10 points compared to last year and falls below its long-term level. This pessimism reflects a clearly slowing business volume : the turnover of the commercial sector increases by 1% (after +5% in 2023), according to the business leaders interviewed. Inflation falls below the 2% threshold, but at the very end of the year. The labor market continues to decline : it creates half as many net jobs (2 400) that in 2023 and its progression now depends significantly on job creation in the public sector. Labor income changes less quickly than prices, limiting gains in purchasing power. The slowdown in activity and the uncertainties that accompany it discourage investment. In this context, all sectors are below performance compared to 2024, including the financial sector where outstanding loans are slowing down. 2024 is a year of transition, summarizes Iédom, characterized by low growth. A new cycle should begin in 2025, where the role of shock absorber of public spending would decrease significantly in a context of national budgetary consolidation, but where could ultimately materialize a recovery in private consumption and a recovery in investment.
