Portugal’s economy achieved a historic external surplus of €9.3 billion in 2024, equivalent to 3.3% of its GDP, according to Euractiv.
This marks a significant increase from the €5.3 billion surplus (2.0% of GDP) recorded in 2023.
The surplus was driven by strong performances in both goods and services trade. The balance of goods and services showed a surplus of €6.7 billion (2.3% of GDP), with the services surplus (€31.910 billion) more than offsetting the goods deficit (€25.260 billion). In 2023, the goods and services surplus stood at €4.0 billion (1.5% of GDP).
The goods deficit remained stable in absolute terms but decreased as a percentage of GDP, falling from 9.5% in 2023 to 8.9% in 2024. Export growth (1.9%) outpaced import growth (1.4%).
Meanwhile, the services surplus grew by €2.7 billion compared to 2023, reaching 11.2% of GDP, the highest figure since the series began in 1999. Exports of services grew by 8.1%, while imports increased by 6.8%.
Sectoral highlights
Travel and tourism sector dominated service exports, contributing €27.651 billion, followed by transport services (€10.500 billion) and other business services (€10.075 billion). The sector saw export growth of 8.8% and import growth of 6.8%, resulting in a record surplus of €20.916 billion (7.4% of GDP). The UK (€4.1 billion), France (€3.2 billion), and Germany (€3.1 billion) were the largest sources of tourism revenue.
The primary income deficit decreased by €2.000 billion to €4.981 billion, whereas the secondary income surplus fell slightly by €15 million to €4.471 billion. Remittances from emigrants, a key component of secondary income, increased significantly, with Switzerland (€1.135 billion), France (€1.109 billion), and the UK (€719 million) being the top sources.
Economic implications
The capital account surplus decreased by approximately €600 million, primarily due to reduced allocations of European investment funds to final beneficiaries. Despite this, the overall financial balance surged to €9.664 billion, a 71% increase compared to 2023.
Portugal’s record external surplus reflects the resilience and competitiveness of its economy, particularly in the services sector. The strong performance of travel and tourism, alongside growth in other service exports, has been instrumental in achieving this milestone.
However, the persistent goods deficit highlights ongoing challenges in the manufacturing and trade sectors.
The Bank of Portugal’s report underscores the importance of continued economic diversification and investment in high-value sectors to sustain growth and reduce vulnerabilities. As Portugal navigates global economic uncertainties, its ability to maintain a robust external surplus will be crucial for long-term stability and prosperity.
