FX.co ★ Portugal Trade Deficit Narrows in July as Exports Outpace Imports

Portugal’s trade deficit narrowed to €3.05 billion in July 2026, from €3.45 billion in July 2025. Exports rose 6.5% to €7.40 billion, largely driven by a 46.6% surge in fuels and lubricants, reflecting higher energy prices and renewed escalation in the US-Iran war. Shipments also increased for industrial supplies (8.1%) and machinery and other capital goods (12.5%), while exports of transport equipment fell 9.3%, mainly due to weaker passenger-car sales.

By destination, exports to Spain grew 11%, whereas shipments to the UK and the Netherlands declined 10.3% and 12.1%, respectively.

Imports edged up 0.6% to €10.45 billion. This modest increase was led by a 42.7% jump in fuels and lubricants and a 10.2% rise in machinery and other capital goods. In contrast, imports of industrial supplies fell 14.2%, driven primarily by lower chemicals purchases.

On a geographical basis, imports increased from France (25.6%), Spain (4.3%), and Nigeria (584.8%), but plunged from Ireland (81.2%).

Over the first seven months of 2026, however, Portugal’s cumulative trade deficit widened to €21.35 billion, from €18.87 billion in the same period a year earlier.