Data from Banco de Portugal (BdP) reveals that the surplus recorded between January and August this year is the highest value recorded during the first eight months of the year since the beginning of the data series, in 1996.

According to the BdP, the improvement in Portugal's external balance up to August by seven billion euros compared to the same period last year results from the decrease in the deficit in the goods balance, the increase in the surplus in the services balance, and the rise in the surplus in capital balance.

The goods balance deficit fell by 1,021 million euros, as exports increased slightly and imports decreased (+0.1% and -1.4%, respectively).

In turn, the increase in the services balance surplus of 4,742 million euros, largely reflects the increases, of 2,403 million euros, in the balance of travel and tourism and, of 1,848 million euros, in the balance of transport, according to the BdP.

The increase in the capital account surplus, from 950 million euros to 2,048 million euros, is mainly due “to a greater allocation to final beneficiaries of funds received from the European Union with a view to investment and an increase in the transfer of carbon licenses”.

Data from the banking supervisor also indicates that the financing capacity of the Portuguese economy in the first eight months of this year translated into a financial account balance of 5,488 million euros.

This evolution reflects the increase in foreign assets, of 8,684 million euros, and the increase in external liabilities, of 3,196 million euros.

Isolating the month of August, Portugal recorded a current and capital account surplus of 1,951 million euros, which compares with a surplus of 571 million euros in the same month of 2022.

The BdP highlights that the balance of goods and services showed “a significant increase”, of 1,361 million euros, standing at 1,560 million euros.

This evolution resulted, on the one hand, from a decrease of 773 million euros in the goods balance deficit to 2,234 million euros and, on the other hand, from an increase of 588 million euros in the services balance surplus to 3,794 million euros. of euros.

BdP data also indicate that the financing capacity of the Portuguese economy translated into a financial balance balance of 2012 million euros in August, due to the increase in foreign assets, of 3,084 million euros, and the increase in external liabilities of 1,072 million euros.