The bleak economic outlook in key markets for Portugal such as Angola, Brazil and China, may lead to a drop in Portuguese exports to those countries, according to a recent report by the European Commission.
The document also said that in addition to a fall in Portuguese exports to these countries, there could also be a decrease in foreign direct investment (FDI) from these countries in Portugal.
The report cited by the Observador newspaper said repercussions on Portuguese exports would be lower than the those of a recession in major trading partners of Portugal in the European Union, such as Spain, France, Germany and the United Kingdom.
The document from the European Commission recognised that exports have contributed significantly to external adjustment and gains in competitiveness from adjustments in relative prices and product quality improvements and “have created conditions for exports to give a greater contribution to the balance of foreign accounts, especially between 2010 and 2013.”
The share of exports in GDP “remains relatively low,” said the document, noting that although there had been improvements in recent years, exports still accounted for just 40 percent of GDP in 2015, “which is low compared to other small, open economies and in the euro zone.” (macauhub/AO/BR/CN/PT)