Portugal’s Trade Deficit Widens Sharply as Exports Plunge

Portugal’s trade deficit widened to €2.51 billion in January 2026, up from €1.73 billion in the same month last year, as exports fell more sharply than imports. Exports dropped 14.1% to €6.06 billion, the steepest annual decline since the post-COVID-19 slump in 2020, driven by a 27.5% fall in industrial supplies, particularly chemical sales to Germany. Exports of fuels and lubricants also tumbled 33.5%. Imports declined more modestly, down 2.5% to €8.57 billion, marking the fourth consecutive month of reduction, largely due to lower industrial supply purchases, especially chemicals from Ireland.

Portugal’s trade deficit narrowed markedly to €2.87 billion in December 2025, compared with €3.06 billion in the same month a year earlier. Imports declined 2.7% to €8.48 billion, marking a third consecutive monthly drop. The decrease was largely driven by a steep 52.7% fall in purchases of fuels and lubricants, mainly crude oil from Brazil and Algeria, amid refinery shutdowns and lower prices. In contrast, chemical imports rose 9.6%, particularly shipments from China, mostly linked to contract manufacturing transactions without a transfer of ownership. Exports edged down a milder 0.7% to €5.60 billion, also extending their decline to a third straight month, led by weaker sales of fuels and lubricants (-24.2%), again reflecting refinery shutdowns, and transport equipment (-8.7%), primarily vehicle exports to the UK. Despite the narrower deficit in December, Portugal’s trade gap widened over 2025 as a whole, reaching €32.10 billion compared with €28.35 billion in 2024.

Portugal’s trade deficit narrowed sharply to €1.99 billion in November 2025, down from €2.62 billion a year earlier, marking the smallest gap since January. Imports fell 7.9% year-on-year to €8.66 billion, extending a two-month streak of decline, driven by an 18% slump in industrial supplies, mainly chemical products from Ireland. Significant declines were also seen in fuels and lubricants (-24.2%), primarily crude petroleum affected by refinery shutdowns and lower prices, as well as in machinery and other capital goods (-7.2%). Exports fell 1.7% to €6.67 billion, weighed down by a steep drop in fuels and lubricants (-64.4%), again largely linked to refinery shutdowns. In contrast, industrial supplies rose 6.9%, supported by higher volumes of chemical products exported to Germany. For the first eleven months of 2025, Portugal posted a trade deficit of €29.1 billion, up from €25.3 billion in the same period of 2024.