According to the Bank of Portugal (BdP), the current and capital account balance last year was 1,424.2 million euros, equivalent to 0.67% of GDP, compared to 49.14 million euros in 2020 (0.02% of GDP).
Although merchandise exports and imports rose last year compared to 2020, “the deficit in the balance of goods increased. [para -15.033 milhões de euros]imports grew at a slightly higher rate than exports.
Compared to 2019, the pre-pandemic period, both exports and imports of goods also showed higher values.
And in the balance of services, the surplus rose compared to 2020, to 9,463 million euros, “because the increase in the travel and tourism surplus offset the decrease in the balance of transport services (the costs associated with transporting goods increased)”.
According to the British Development Bank, the values of exports and imports of services, however, were lower than those recorded before the pandemic, with exports at 76% and imports at 99% of 2019 values.
He notes that in 2021, “tourists residing in France, the United Kingdom and Spain remained responsible for the largest tourism revenues in Portugal”.
In the balance of payments statistics released today, the central bank also refers to receiving more European money as a “determining factor for the increase in the secondary income balance surplus and for the reduction of the primary income balance deficit” respectively to 5,709 and -2,543 million euros.
As for the capital account, its surplus increased to 3,827 million euros, benefiting from a receipt in July 2021 of about 1,100 million euros from the European Financial Stability Fund, an amount resulting from the return of the financial margin within the scope of the economic and financial assistance program for Portugal.
Looking at only December, the trade balance deficit increased by 434 million euros compared to the same month, with the services balance surplus increasing by 164 million euros, which is not enough to offset the worsening deficit. In the balance of goods 598 million euros.
In the goods account, exports grew less than imports (23.5% and 28.8%, respectively), and in the services account, exports and imports increased by 40.7% and 46.0%, respectively.% was driven by the export of travel and tourism and the import of transport services.
The Central Bank highlights the growth of travel and tourism exports and imports, which rose respectively by 68.9% and 60.1% compared to December 2020, but remained below the values recorded in December 2019.
As for the balances of capital and primary and secondary income, they showed surpluses.
“The increase in the capital account surplus was, to a large extent, related to the allocation of European funds to the ultimate beneficiaries (ie the ERDF program and the Cohesion Fund), and despite the increased financial contribution to the Community budget paid by Portugal, the secondary income balance surplus increased,” the Development Bank notes. Asian.
In 2021, the balance of the financial account (financial assets held by Portugal abroad, minus liabilities abroad) increased by 1,937 million euros.
According to the British Development Bank, the decline in long-term public debt securities held by non-resident entities contributed to this increase; investment by resident banks in long-term public debt securities issued by countries belonging to the monetary union; And the investment of the non-banking financial sector and individuals in the units issued by non-resident investment funds.
Conversely, the increase in the balance of the financial account was softened by the withdrawal of Banco de Portugal to its investment in debt securities issued by the monetary union entities; Through the increase in general government obligations, due to the loan obtained under the SURE program in May 2021; and the acquisition by non-resident entities of the capital of Portuguese companies of the same group.
Foreign direct investment in Portugal increased in 2021, compared to 2020, especially in companies operating in the service sector.
When analyzing only the month of December, among the financial calculations, the decrease in the commitments of the Bank of Portugal to the euro system appeared; Withdrawal of investment in Portuguese public debt (mostly in long-term debt securities, by non-resident entities); Withdrawal of investments by Portuguese companies in the capital of non-resident entities of the same group.
