Tourism earns Portugal €1.6Bn for the economy

According to the latest data from the Bank of Portugal released on Wednesday, tourism brought in €1.6Bn for the Portuguese economy in the first 10 months of 2024.

And according to data on the country’s balance of payments, there was an external surplus of €9.4Bn, a like-for-like growth of 84% on the €5.1Bn posted to October, 2023, revealing an overall improvement in Portugal’s balance of overseas payments.

According to Bank of Portugal, this positive performance is due to several factors, especially the favourable evolution of the balance of goods and services that to October increased by €2.8Bn compared to the same period in 2023.

The reduction of the goods balance deficit by €823 million, driven by an “increase in exports higher than imports”, contributed significantly to this result. At the same time, the surplus for the balance of services increased by €1.965Bn, with tourism playing a crucial role, showing a growth of €1.617Bn in the balance of travel and tourism.

The Bank of Portugal’s data also highlights overseas investment and financing. To October, Portugal invested €21.6Bn in financial assets abroad, while it obtained €12.2Bn in financing from non-residents reflecting a more robust national economy, with a growing capacity to invest across borders, while continuing to attract foreign investment.

The improvement in the primary income balance, with a reduction of the deficit by €1.340Bn was also highlighted by the Bank of Portugal. This positive development was mainly due to “a greater allocation of European Union funds in the form of grants”.