Exports and imports of services through November surpassed pre-pandemic levels
Growth in exports and imports of services contributed to the national economy registering an external surplus of 914 million euros. Even so, the trade balance fell by 574 million euros.
Exports and imports of services had a year-on-year growth of 58.2% and 40.5%, respectively, in November 2021, released this Wednesday the Bank of Portugal (BdP). The level observed exceeds, for the first time in the year, the values observed in 2019, i.e. prior to the covid-19 pandemic.
The Banco de Portugal says that travel and tourism, air transport and IT services contributed to the increases. "In particular, the year-on-year growth of exports and imports of travel and tourism in, respectively, 135.5% and 88.4% contributed to improve the balance of this item by 362 million euros. The values of exports and imports of travel and tourism recorded in November 2021 corresponded to 90.5% and 88.7% of those observed in November 2019," reads the statistical bulletin of the BdP on the balance of payments of November 2021.
The growth in exports and imports of services contributed to the national economy registering an external surplus of 914 million euros, 574 million euros more than in the same period of the previous year, until November 2021.
Despite the external surplus, the trade balance (balance of goods and services" balance fell by 574 million, compared to November 2020. This is because "the improvement in the services surplus was not enough to offset the worsening of the goods deficit.
The balance of goods deficit increased by 1,061 million euros compared to November last year, to 1,816 million euros, "reflecting lower growth in exports than in imports (16.5% and 32.6%, respectively).
The deficit of the primary income account (payments and receipts of income, such as dividends and interest received by non-residents as a result of investments they hold in Portugal, and received by residents in Portugal, associated with investments abroad) "has not changed compared to November last year.
"In turn, Portugal's payment of 178 million euros to the European Union budget, 133 million euros less than in November 2020, contributed to the year-on-year increase in the surplus of the secondary income account [includes transactions between residents and non-residents on goods and services, primary income and current transfers]," details the BdP.
"The capital account showed an increase in the balance compared to November 2020, as a result of an increase in European funds allocated to final beneficiaries," the banking regulator concludes.