According to a report by ECO, since at least 2000, Spain has
not only been the main destination for national exports but has also been
Portugal's main economic partner: since then, trade between the two countries
has gone from 17.6 billion euros, around 14 % of GDP, for a record figure of
55.5 billion euros last year, equivalent to 23% of GDP.
The dependence of the national economy on Spain is so great
that, in the last decade, a quarter of exports were destined for the Spanish
market and almost a third of national imports originated from Spanish
companies.
According to data from the National Institute of Statistics
(INE), in 2022, 26% of national exports were destined for Spain and 32% of
national imports were accounted for with products “made in Spain”.
In the sphere of Portugal's commercial accounts, the impact
of Spain is so great that last year alone, trade with Madrid surpassed the
trade between Portugal and the remaining four major trading partners combined.
The overall balance of exports and imports accounted for with Germany, France,
China, and the Netherlands last year was 6.6% lower than trade with Spain.
When we compare Portugal’s GDP, Trade Balance, Balance Sheet, Etcetera, Portugal is really quite small namely the numbers compared to some of the countries you highlight in this report is not irrelevant but still quite small, potentially explains why Spain is still happy, as one example, to cut off our water supplies during the drier periods.
By Miguel Diogo from Lisbon on 14 Feb 2023, 12:19
We should have in place public policies towards diversifying our imports origin beyond Spain, even on exports we should not 'rely' so much on a single partner, even if it's against euro area rules, which need to more flexible to embrace place based or internal issues.
By Diogo F. from Lisbon on 16 Feb 2023, 21:34