The Portuguese economy reached July with a balance of more than 3.2 billion euros in balance with the outside world, supported by factors such as increased tourist demand from foreigners or a greater absorption of community funds, compared to the previous year.

As of July last year, the external balance had accumulated a deficit of 2.4 billion euros, according to the Bank of Portugal.

The improvement this year is mainly due to the surplus in the balance of services, which increased by 4,154 million euros. This increase was largely justified by an increase of 2094 in the balance of travel and tourism in the first seven months of this year.

On a monthly basis, exports of travel and tourism services in July reached 3,092 million euros, the highest value in July, according to Development Bank data.

Compared to last year’s balance, the Bank of Portugal also highlights an increase in the capital account surplus, from €943 million to €1,823 million, which resulted from “a greater allocation to end-beneficiaries of community funds for the purpose of investment and an increase in the transfer of carbon licences.”

The merchandise balance deficit also decreased compared to the same period last year by 248 million as a result of an increase in exports over imports (1.1% compared to a 0.4% increase in purchases of goods). abroad during the first seven months of this year).

When looking only at the development that occurred in July, and despite the record values ​​of tourism exports, the results of the economy in the external balance indicate a worse scenario in the relationship between the exchange of goods with foreign countries, due to the decline in exports in recent months.

The Development Bank notes that the deficit in the balance of goods amounted to €1,962 million, reflecting a 10.7% decline in exports, higher than imports (-5.4%).

This development harmed the balance of goods and services, which rose by only 63 million euros in July, reaching 1,077 million euros.

In July, the current and capital account surplus amounted to €1,076 million.