Portugal Trade Deficit Widens

Portugal’s trade deficit widened to €2.86 billion in March 2026, up from €2.51 billion a year earlier. Imports surged 11.6% to €10.37 billion, matching the record high set in July 2025, driven by strong demand for transport material (up 20.2%), particularly passenger cars from Spain, as well as machinery and other capital goods (up 20.0%), mostly from the Netherlands. Imports of industrial supplies also rose 8.5%, led by chemicals and metals from Spain and the Netherlands. Exports climbed 10.6% to €7.50 billion, the highest since July 2024, fueled by increased sales of machinery and capital goods (up 17.4%), primarily to Germany, as well as transport material (up 12.7%), boosted by passenger car exports to Turkey, and consumer goods (up 12%), particularly to Spain and France. In the first quarter of 2026, the trade deficit widened to €8.42 billion from €6.30 billion in the same period of 2025, as imports outpaced export growth.

Portugal recorded trade gap of €2.546 billion in February of 2026, widening from the €2.057 billion in the corresponding period of the previous year. Exports plunged by 14.9% from the previous year to €6.174 billion amid a slide for transformed motor fuel and lubricants (-47% to €139 million), industrial products (-28% to €1.823 billion), and auto parts and accessories (-11.1% to €578 million). Meanwhile, imports dropped by a softer 6.3% to €8.720 billion amid lower purchases of foreign primary fuel (-37% to €322 million), passenger cars (-13.6% to €634 million). In turn, imports rose for inputs for industrial food manufacturers (40% to €130 million) and industrial transportation equipment (43% to 274 million).

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.