FX.co ★ Portugal Trade Deficit Widens in August as Exports Fall to Four-Year Low

In August 2025, Portugal's trade deficit expanded to €2.98 billion, increasing from €2.67 billion recorded in the same period the previous year. This change occurred as exports declined by 1.3% to a four-year low of €5.10 billion. The decrease in exports was primarily influenced by a significant drop in fuels and lubricants, which fell by 25.6%. This decline was somewhat counterbalanced by a 10.8% increase in transport equipment exports.

By destination, exports to Spain decreased by 5.8%, exports to the Netherlands fell sharply by 22.2%, mainly due to reduced fuel and lubricant shipments, and exports to Germany decreased by 9.9%, predominantly due to decreases in machinery and other capital goods. Conversely, exports to the United States saw a significant increase of 36.5%, driven by industrial supplies, predominantly associated with processing trade that involves work on order without a transfer of ownership.

Meanwhile, imports into Portugal rose by 3.1%, reaching €8.08 billion. This increase was bolstered by higher imports of industrial supplies, which surged by 19.4%, and transport equipment, which climbed 18.7%. Conversely, imports of fuels and lubricants witnessed a substantial decline of 28.5%.

Looking at the origin of imports, those from Ireland experienced a dramatic rise of 615.9%, largely due to industrial supplies linked to processing trade. Imports from Germany also grew by 22.2%, primarily fueled by the acquisition of airplanes and passenger cars.