Portugal export growth slows in August as trade gap widens

Portugal’s exports of goods rose 6.8% year on year in August, slowing from 7.8% in July, while imports increased 2.8%, according to data published by Statistics Portugal on Friday. The figures point to weaker export momentum even as the country’s external trade flows continued to expand.

The goods trade deficit widened by €115 million from the same month a year earlier to €2.991 billion. Excluding transactions without transfer of ownership, such as goods sent for processing, exports rose 11.6% and imports 7.7%, while the trade deficit increased by €47 million to €3.024 billion.

By product category, export growth was driven by fuels and lubricants, machinery and other capital goods, which rose 16.7%, and industrial supplies, up 6.5%. Transport equipment was the only category to fall, dropping 19.1%, mainly because of lower passenger car exports. Statistics Portugal said that excluding fuels and lubricants, exports increased just 2.8%, with the gap explained by a 61.7% jump in exports of that category, reflecting higher volumes and especially higher prices.

Among trading partners, exports to Spain increased 11.2%, supported by industrial supplies, while shipments to the Netherlands rose 46.8%, notably in fuels, lubricants and industrial supplies. Exports to the United States fell 28.5%, which the statistics office said was largely linked to lower chemicals transactions related to processing work.

Originally published at Eco.pt