Portugal expected to post first trade surplus since the second world war in 2012

11 July 2012

Portugal is this year expected to post a trade surplus equivalent to 0.4 percent of its gross domestic product (GDP), which has not happened since 1943, according to figures published Tuesday by the Bank of Portugal in Lisbon.

The central bank also said that in 2013 the trade surplus would rise to 2.5 percent of GDP, which is unprecedented in the last 69 years.

In 1943, as in the previous two years, Portugal posted a balance of trade deficit driven by mining exports (mainly of tungsten) and of food goods to a number of Axis countries such as Germany, Italy and Spain.

The surplus expected this year is due to the fact that exports are expected to rise by 3.5 percent, which is better than the previous forecast of 2.7 percent, and consumer spending falling by 5.6 percent.

On Tuesday Portugal’s National Statistics Institute said that Portuguese exports had risen 6.5 percent in the quarter ended in May, against the same period of last year, driven by trade with countries outside the Euro Zone. (macauhub)