Exports and imports rebound in 2024
Despite the faster growth in exports compared to imports, the trade deficit widened by €78 million, reaching €27.887 billion.
Portugal’s export and import sectors showed signs of recovery in 2024, reversing the downward trend recorded in the previous year.
According to data released by the National Institute of Statistics (INE) on Monday, exports grew by 2.5%, while imports increased by 1.9%, compared to declines of 1.4% and 4% respectively in 2023.
Despite the faster growth in exports compared to imports, the trade deficit widened by €78 million, reaching €27.887 billion. The trade coverage ratio also saw a slight increase of 0.4 percentage points, reaching 74%.
When excluding transactions related to subcontracted manufacturing (which do not involve ownership transfer), growth in both exports and imports was more modest, at 1.7% and 1.2%, respectively.
INE data further revealed that exports without ownership transfer represented 4.3% of total exports, an increase of 0.8 percentage points compared to 2023.
In this category, the trade deficit actually decreased by €39 million, totaling €28.348 billion.
Excluding fuels and lubricants, exports rose by 2%, while imports increased by 3%.
This compares to respective growth rates of 0.7% and 1.7% in 2023. As a result, the trade deficit in this category reached €21.909 billion, up €1.328 billion from the previous year.
Food, Beverages, and Industrial Supplies Lead Export Growth
Most export categories saw gains in 2024, with food and beverages increasing by 8.3% and industrial supplies rising by 2.3%.
However, when excluding exports without ownership transfer, industrial supplies actually declined by 0.5%, while food and beverage exports saw a slight rise of 8.4%.
Exports of fuels and lubricants experienced a notable 10.2% increase, particularly to Belgium, Gibraltar, and the Netherlands.
The global demand for these products, coupled with fluctuations in crude oil prices, played a significant role in this growth. Despite a 2.6% drop in the average annual price of Brent crude (in euros), demand for fuel exports remained strong.
On the other hand, transport equipment exports fell by 0.6%, largely due to reduced shipments to France, Turkey, and Japan. When excluding transactions without ownership transfer, the decline in transport exports was even more pronounced at 1.2%.
Industrial supplies remained the largest export category, accounting for 31.8% of total exports, albeit 0.1 percentage points lower than in 2023.
Germany and Spain Drive Export Growth
Germany was the top contributor to export growth, accounting for 12.3% of total exports and recording a 17.8% increase in purchases from Portugal.
The rise was driven by industrial supplies, transport equipment, and machinery.
Spain remained Portugal’s largest export market, with a 26% share of total exports. Shipments to Spain grew by 3.5%, primarily driven by food, beverages, and industrial supplies.
Together, Spain, Germany, and France accounted for 50.5% of Portugal’s total exports, up 1 percentage point from 2023.
Outside the European Union, the United States was the largest non-EU destination, with a 6.7% share, followed by the United Kingdom at 4.6%.
Decline in fuel imports offsets overall import growth
While most import categories grew in 2024, imports of fuels and lubricants fell by 6.1%, mainly due to reduced transactions with Spain.
When excluding ownership transfer transactions, industrial supplies imports also declined by 1.7%.
The largest driver of import growth was consumer goods, which increased by 7.3%, primarily due to transactions with Spain, China, and the Netherlands.
Transport equipment imports followed, rising 4.9%, largely due to purchases from France.
As Portugal’s economy continues to stabilize, the rebound in exports and imports signals renewed activity in global trade, with key sectors showing resilience despite economic uncertainties.