(reading time: 2 mins)

In a nutshell, external data in August, stabilized on a yearly basis, which is positive. Even so the Current Account balance is barely positive, around 0.2% of GDP (LTM). However, the break down is not positive, as the huge Goods Account Balance deficit, 10.3% of GDP is offset by a huge surplus in the Service Account, 10.3% of GDP. Finally, the Travel Account Balance surplus (consolidates in the Services Account Balance) has been mainly flat on a yearly basis (please see graph below).

The Bank of Portugal has just released August’s External Balance data.     

The main highlights are the following:

1 – Current Account Balance, in percentage of GDP, last 12 months (LTM): 0.20%. Compares with 12MMA (12 months moving average): +0.8% and 3MMA: +0.3%;

2 – Balance of Goods (just goods, net), deficit: -10.3% of GDP (LTM) vs. 12MMA: -10.0%/3MMA: -10.3%;

3 – Balance of Goods, deficit, in August, went up +0.8%YoY vs. 12MMA: +15.5%/3MMA: +13.7%;

4 – Balance of Services (just services, net; includes Travel Account Balance) surplus: +10.3% of GDP (LTM) vs. 12MMA: 10.6% and 3MMA: 10.4%;

5 – Balance of Services, Surplus, in August, -0.3%YoY vs. 12MMA: 1.2%/3MMA: -0.3%;    

4 – Travel Account Balance (just tourism revenues, net; a subcomponent of Services Account Balance) surplus is at +7.0% of GDP (LTM) vs. 12MMA: +7.1%/3MMA: +7.0%;

5 – Travel Account surplus, in August +0.7%YoY vs. 12MMA: +2.8%/3MMA: +0.7%.

Our comments: The Portuguese current account in August was positive €1,420Mn, slightly lower than August 2025. Figures were quite stable on a yearly basis, even so the Current Account surplus is barely positive, 0.2% of GDP (LTM) and the unbalance is huge, the Balance of Goods records an enormous deficit, 10.3% of GDP (LTM), while the services account records a surplus of 10.3% of GDP (LTM), also important to highlight, the surplus at the services Account has smoothly adjusted, mainly because Tourism has stabilized, the Travel account surplus (consolidates in the Services Account) increased 0.7%YoY IN August.

Source: INE, BoP, AS Independent Research