Portugal’s overseas trade surplus hits record in Q3

Portugal’s external trade surplus reached a new all-time high in the third quarter of this year, reaching 3.9% of Gross Domestic Product (GDP).

In nominal terms, it amounted to €8.2Bn, more than double that recorded in the same period last year, according to data from the Bank of Portugal (BdP) released on Monday.

The external surplus achieved in the third quarter exceeded the maximum of 3.81% of GDP recorded in the first quarter of this year and rose again after a slight drop in the second quarter (3.08%). In the third quarter of 2023, it stood at 2.37% of GDP.

In nominal terms, until September, the surplus stood at €8.2 billion, higher than the €4.7 billion recorded in the same period of the previous year.

This evolution resulted from a decrease in the deficit in the balance of goods of €712 million, with exports increasing and imports decreasing, an increase in the surplus of the balance of services, of €1.7Bn, with the evolution of the balance of travel and tourism and the balance of transport services “justifying a large part of this variation” and a decrease in the deficit of the primary revenues account of €949 million, influenced by a higher attribution of funds from the EU in the form of subsidies.

In addition, there was an increase in the secondary income account surplus, of €358 million, as a result, “to a large extent, of the receipts of Euromillions premiums” and a decrease in the capital account surplus of €325 million, mainly explained by the lower allocation of European Union funds for investment to final beneficiaries.

The current and capital account balance amounted to €1.2Bn in September, which translates into an increase of €625 million compared to the same month of 2023. Influencing this evolution was the increase of €742 million compared to the same month of 2023 in the balance of goods and services, which reached €1.3Bn, but also the increase in the surplus of the balance of services, from €250 million, to €3.2Bn.

The Bank of Portugal indicates that exports and imports of services increased, respectively, by 7.8% and 7% compared to September 2023. The increase in exports and imports mainly reflects the contribution of travel and tourism, with an increase of €252 million and €48 million, respectively.