Up to June 2019 the combined current and capital account balance stood at -€2,600 million, compared with -€1,678 million in the same period in 2018 (Chart 1).
These developments were mainly due to the goods account (Chart 2).
The goods account deficit increased by €1,727 million and the services account surplus remained unchanged year-on-year (Chart 3).
In the first six months of the year, exports of goods and services grew by 3.3% (2.4% in goods and 5.2% in services) and imports rose by 7.3% (6.8% in goods and 9.9% in services).
The primary account deficit decreased by €404 million compared to the same period one year earlier, to €3,207 million. This was mainly due to a decrease in interest paid to non-residents.
Up to June 2019 the financial account balance saw a €2,169 million reduction in net foreign assets in Portugal (Chart 4), which was due to an increase in liabilities on the back of investment of non-residents both in resident non-financial corporations and Treasury bonds. This was partly offset by a rise in foreign financial assets, most notably the investment of resident banks in debt securities issued by non-residents.
Banco de Portugal and Statistics Portugal (Instituto Nacional de Estatística – INE) are preparing the national accounts benchmark revision, which will make it possible to enhance the consistency between the non-financial component of the National Accounts, incumbent on Statistics Portugal, and its financial component, entrusted to Banco de Portugal. At the same time revisions on statistics on the balance of payments and international investment position, also incumbent on the Bank, will be incorporated.
The statistics compiled by Banco de Portugal will be released in accordance with the new benchmark on 10 October 2019 (additional information can be found here).
Next update: 18 Sep. 2019