Portugal Trade Deficit Widens

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.

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.