Portugal Current Account Swings to Deficit in June

Portugal’s current account balance swung to a €303.42 million deficit in June 2026, compared with a €346.64 million surplus in the same month a year earlier. The deterioration was mainly driven by a sharp widening of the goods deficit, which increased by 32.8% to €3,109 million as import growth surpaced export growth. This was partly offset by a 13.2% jump in the secondary income surplus to €435 million, supported by a 2.5% rise in remittances to €375 million, and a 13% decrease in the primary income deficit to €428 million, driven by driven by the increase in income obtained from foreign investment funds. Meanwhile, the services surplus edged up by 0.1% to €2,799 million.

Portugal's current account deficit widened to €632.82 million in May 2026, from €445.25 million in the same month a year earlier. The deterioration was primarily driven by a 4.2% decline in the services account surplus to €2.71 billion, reflecting lower receipts from technical trade-related services and other business services. The goods account deficit also widened, rising 4.7% to €2.57 billion, as import growth (4.2%) outpaced export growth (4.0%), despite tourism revenues increasing to €2.74 billion. Meanwhile, the primary income deficit narrowed 0.6% to €1.27 billion, while the secondary income surplus increased 8.6% to €493 million, supported by higher reinsurance claims received from abroad related to compensation for damages caused by the storms that affected Portugal during the first months of the year.

Portugal’s current account posted a surplus of €350.41 million in April 2026, reaching the highest level in six months, up from a surplus of €234.95 million recorded a year earlier. The secondary income surplus increased by €112 million driven by increased reinsurance claim inflows from abroad, linked to compensation for damages caused by storms that struck Portugal earlier in the year. In contrast, the primary income deficit widened by €158 million, mainly due to higher interest income received from abroad and lower interest payments to non-residents. Meanwhile, tourism revenues increased to €2383.51 million from €2263 million. In contrast, the goods account deficit increased by €189 million, as imports increased at a faster pace than exports.