Statistical Press Release – Balance of payments - July 2020
Up to July 2020 the combined current and capital account balance stood at -€1698 million, compared with -€605 million in the same period in 2019 (Chart 1).
The balance attained up to July was due to the deficit of goods and primary income accounts, partially offset by the surplus of services, secondary income and capital accounts (Chart 2).
In the first seven months of the year, in spite of the negative contribution to the overall balance, the deficit of the goods account reduced by €2615 million when compared to the same period of 2019. However, the services account surplus decreased by €5022 million. This decrease was mainly caused by the reduction of travel item which decrease €4289 million. Up to July, the exports of goods and services decreased by 23.3% (15% in goods and 38.4% in services) and the imports reduced by 18.8% (17.6% in goods and 23.9% in services).
In July, the exports and imports of goods and services showed reductions comparing to the same period of 2019 (25.9% and 22.3% respectively) reflecting a reduction of the travel balance by €1262 million, as a consequence of the decrease of 65.9% in exports and 41.8% in imports (Chart 3).
Between January and July of 2020, the primary income deficit decreased by €1156 million, when compared with the previous year, reaching -€2259 million. This decrease of the deficit was mainly caused by the decrease in investment income payments to non-residents. The secondary income surplus decrease by €104 million, as a result of increase on the current transfers paid to non-residents, compared to the same period one year earlier. On the other hand, the capital account balance increased €262 million, when compared to the same period of 2019, mainly due to an increase of the EU funds received.
Up to July 2020, the financial account balance saw a €1736 million decrease in net foreign assets in Portugal (Chart 4). This was chiefly due to an increase in Banco de Portugal liabilities vis-à-vis the Eurosystem, and the investment of non-residents in Portuguese public debt securities. In contrast, the banks increased assets over non-resident entities, namely in debt securities issued by countries of the Monetary Union and non-resident decreased their deposits in national banks.
Next update: 19 Oct. 2020