Statistical Press Release – Balance of payments - June 2020
Up to June 2020 the combined current and capital account balance stood at -€1985 million, compared with -€1662 million in the same period in 2019 (Chart 1). In June the current and capital account had a balance of €507 million (€54 million in June 2019).
The balance attained up to June was due to the deficit of goods and primary income accounts, only partially offset by the surplus of services, secondary income and capital accounts (Chart 2).
In the first six months of the year, the deficit of the goods account reduced by €1623 million when compared to the same period of 2019, while the services account surplus decreased by €3555 million. This reduction was mainly caused by the reduction of the travel balance which decrease €3027 million. Up to June, the exports of goods and services decreased by 22.8% (16.5% in goods and 34.8% in services) and the imports reduced by 18.1% (17.3% in goods and 22% in services).
In June, the exports and imports of goods and services showed reductions comparing to the same period of 2019 (25.9% and 23.4% respectively) reflecting a reduction of the travel balance by €967 million, as a consequence of the decrease of 78.7% in exports and 57.4% in imports (Chart 3).
Between January and June of 2020, the primary income deficit decreased by €1268 million, when compared with the previous year, reaching -€1848 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 €96 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 €439 million, when compared to the same period of 2019, mainly due to an increase of the EU funds received.
Up to June, the financial account balance saw a €2476 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 and the insurance corporations increased assets over non-resident entities, namely in debt securities issued by member states of Economic and Monetary Union.
Next update: 17 Sep. 2020