Travel and tourism export fall 79% in June


Export of goods and services shrank 25.9% in June compared to the same month last year, reveal the data published this Wednesday by Banco de Portugal, highlighting the 79% reduction in travel and tourism exports

The tourism sector has been one of the most penalized by the Covid-19 pandemic and the figures clearly express the impact on the Portuguese economy, where it has great weight in economic activity and exports. Moreover the sector is slow to feel a resumption of activity.

Banco de Portugal's Balance of Payments data released this Wednesday, indicate that in June export of goods and services fell 25.9% year on year. And the central bank highlights travel and tourism, where exports shrank 78.7% in June compared to the same month last year.

Imports of goods and services decreased 23.4% in June in year-on-year terms, with the fall also being felt in a marked way in imports of travel and tourism (minus 57.4%).

As a result the balance of travel and tourism, traditionally strong in Portuguese foreign trade, decreased by 967 million euros in June, according to Banco de Portugal.

Looking at the whole of the first half of the year, the central bank finds that the combined balance of the current and capital accounts was negative in 1985 million euros, worsening in face of the deficit of 1662 million euros in the same period of 2019.

This balance "results from deficits in the balance of goods and primary income, which were only partially offset by surpluses in the balance of services, secondary income and capital", points out the Bank of Portugal.