Rise in exports leads to better balance of trade balance since 2019 – Conjuncture

The INE report for February indicates an increase in exports of goods of 2.8% compared to the same month last year – just before the impact of the pandemic in Portugal was felt. Imports, on the other hand, fell 10.9%. Excluding fuels and lubricants, exports increased by 2.3% and imports decreased by 10.4%. It is the best result of the trade balance since February 2019.

Among the main components, there is an increase in exports of industrial supplies (6.7%) and a decrease in imports of transport material, in the order of 35%: above all “other transport material” (-71.5% ), but also passenger cars (-37.8%). In the quarter ended in February, exports and imports of goods decreased by 4.8 and 11.3%, respectively.

In comparison to January, the 7.9% growth trend in exports is confirmed, leveraged by the resumption of global trade and activity as countries recover from the pandemic. In imports, the increase was more modest, with a mere 3.7% compared to January, which means an end to the downward trend that has lasted since November, due to an increase in domestic consumption.

With regard to the trade balance, the deficit decreased in February by approximately 161 million (837 million compared to February last year), reaching a total value of 708 million euros – the best result since February 2019, at least. Excluding fuels and lubricants, the variation was 198 million (694 million year-on-year), which culminates in a deficit of 435 million euros – also the best result since at least February 2019.

In terms of countries, Belgium was the one that most stopped importing from Portugal (in relative terms, 19.1%), but the hole was offset by the increase in exports to the Netherlands, in the order of 18%. However, in the quarter as a whole, Angola leads the way in cuts in imports of Portuguese products (21.4%).

Portugal, on the other hand, cut imports from the United Kingdom by more than half (56.3%), which exemplifies the downward trend over the month compared to most of the main Portuguese suppliers. Portugal only imported more from the United States (25%) and the Netherlands (2.8%).

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