Government Ecstatic Over Jump in Exports

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Portugal is experiencing a surge in exports for 2013 so much so that, for the first time since World War II, the country will have a positive trade balance. This piece of good news was recently announced by Economy Minister Álvaro Santos Pereira in a press conference organized by TSF, a local radio station.

The exports are valued in excess of 40% of the Gross Domestic Product (GDP). This is a fairly impressive feat considering the effects of the global financial crisis on many countries in the European Union including Portugal.

The jump in exports has exceeded the expectations of the international institutions that placed Portugal’s external adjustments approximately two years ahead of schedule.

But the Portuguese national government is aiming higher. Minister Pereira expressed his aim of exports comprising 70% to 80% of the country’s GDP, an ambition that he has encouraged industries to aim for in the coming years. By the looks of the current economic pace in the country, the aim may well be realized sooner than later.

In 2012, Portugal has performed well on the economic front, too. Exports increased by 5.8% in 2012 with a nearly 20% surge in shipments outside of Europe.

The 5.4% drop in imports coupled with the 5.8% increase in exports led to the cut in the trade deficit by €5.6 billion to €10.7 billion in 2012. This lends credibility to Minister Pereira’s statement that, indeed, Portugal will be enjoying a positive trade balance in over 150 years.

Exports to non-European Union (EU) countries including China, Mozambique and the United States have also increased by 19.8% to €13.1 billion while exports to other EU countries increased by 1% in 2012. The exports to non-EU countries accounted for nearly 29% of the total exports, which is a good jump from 25.4% in 2011.

These figures were reported by the National Statistics Office.

Other evidence of the economic progress made since the austerity measures were implemented as part of the national recovery plan is growing. The Port of Aveiro, for example, has reported an increase of 22% in the volume of goods moved than in the same period in 2012.

The total amount reported by port authorities – 300,000 tons, which is approximately 50,000 tons higher than the same month last year. The general cargo category was the highest-grossing in the overall total.

The main exports of Portugal are products in agriculture, food, chemicals, oil, rubber, plastics, skins and leather, wood pulp and paper, wood and cork, clothing, footwear, textiles, minerals and mineral products, optical and precious instruments, and machinery and tools. These commodities are exported mostly to other European Union countries with the main export partners being Spain, Germany, France, and the United Kingdom as well as in countries like Angola.

Investments in agriculture, industry and mining have also increased. This is a departure from prior administrations that considered these sectors as “not very sexy” investments, according to Minister Pereira who characterized such practice as “pharonic”.

Yet another piece of good news on the economic front is the recent report by Standard & Poor’s wherein Portugal was cited as one of the peripheral economies in Europe “adjusting externally with speed”. Considering the worldwide influence of the credit rating agency, the statement is a vote in favor of Portugal.

The bottom line: Portugal is looking up and aiming high. Now is the time to start looking into the potential investments in the country including real property!


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Published in: Business / Money