Portugal’s overseas surplus falls to €2.2Bn to June

Portugal’s overseas surplus fell by €258 million to €2.2Bn to June according to data from the Bank of Portugal which blames a growth in imports in the first half period.

It was down by €1.9Bn in like-for-like terms or the equivalent of 1.6% of GDP. According to the BoP, the reduction in the surplus reflects a €2.7Bn increase in the balance of payments deficit between exported and imported goods caused by a growth in imports (+€2.4Bn) and a fall in exports (-€258 million).

It also results from the increase of €754 million in the surplus of the services balance, mainly justified by the evolution of the travel and tourism balance (+€489 million).

In the first half of 2025, the capacity to finance the Portuguese economy resulted in a financial balance of €2.4Bn.

According to the BoP, non-monetary financial institutions, except insurance companies and pension funds, was “the sector that contributed the most” to this balance, namely through the reduction of liabilities in capital and debt securities.

In the opposite direction, the central bank was the sector with the largest reduction in net assets abroad, mainly due to the increase in liabilities in the form of deposits.

Taking June into consideration, the Portuguese economy showed an overseas surplus of €747 million, down on the same month in 2024 by €566 million.

This reduction reflects the increase of €402 million in the balance of goods deficit caused by a growth in imports (+€487 million) exceeding exports (+€85 million).

Source: Bank of Portugal