Portugal registered a foreign deficit of 2,778 million euros until July, which compares with a deficit of 275 million in the same period of 2021, the Bank of Portugal (BdP) announced on Tuesday.
According to the BoP, in July 2022, the current and capital accounts reached a surplus of 437 million euros, which corresponds to a reduction of 559 million euros compared to the same period in 2021.
It should be noted that, in July 2021, the exceptional receipt of a capital transfer of some 1,100 million euros had been registered, as a result of the return of the financial margin withheld when indebted with the Economic and Financial Assistance Program “, has indicated the bop
The increase in the merchandise account deficit, to 1,671 million euros, reflects a growth in imports above that of exports in relation to July 2021, of 28.4% and 27.6%, respectively.
Regarding exports and imports of services, they increased, respectively, by 83% and 33.5% compared to July 2021, having contributed to this evolution, “in particular, the items of travel and tourism and air transport”, the banking regulator said. .
Exports and imports of travel and tourism grew, in interannual terms, by 144.7% and 57.1%, respectively, which allowed the surplus of this item to increase by 1,415 million euros, to 2,122 million euros.
The values registered in the category of travel and tourism —in exports, imports and the balance— are the highest in a month of July of the entire series”, highlighted the BdP.
In July, the surplus of the primary income account increased by 666 million euros year-on-year, “reflecting the growth in the payment, by resident entities, of investment income in the form of dividends to non-resident investors”.
As for the surplus of the secondary income account, it increased by 89 million euros.
In the year to July, in year-on-year terms, the balance of the financial account was negative by 1,600 million euros, “reflecting an increase in foreign liabilities (7,500 million euros) greater than the increase in assets (5,900 million euros) . euro)”.
The variation in liabilities is explained by the increases related to the investment of non-residents in Portuguese public debt and debt securities issued by non-financial corporations, by the growth of foreign direct investment in Portugal, especially in the real estate sector, and by the reductions in Liabilities of the Banco de Portugal with the Eurosystem.
In July 2022, the balance of the financial account was 548 million eurosresult of an increase in assets (3,800 million euros) higher than the growth in liabilities (3,300 million euros).
Regarding liabilities, the balance is mainly due to the increase in the liabilities of the Banco de Portugal, whether in cash and deposits, or in the form of loans, as well as the increase in non-resident deposits in other resident monetary financial institutions.
These values were partially offset by maturing Portuguese public debt securities held by non-residents, the central bank noted.
The balance of payments statistics will be updated by the BoP on October 20.
Source: Observadora
