Germany is Portugal’s second-largest export partner, with bilateral trade reaching a historic high in 2024. Portuguese exports to Germany grew by 18%, reaching €9.76 billion—the highest figure recorded since 2000. This makes Germany Portugal's second-largest market for goods, surpassing France, and solidifying its position just behind Spain. The increase in exports reflects Portugal's improving competitiveness and ability to provide high-value-added products that meet the demands of Germany's industrial and consumer sectors.

While traditional sectors such as textiles and footwear once dominated Portugal's exports, today the country is offering a much more diverse range of goods. In 2024, Portugal's exports to Germany were led by machinery, transportation equipment, pharmaceuticals, and high-tech products, including optical and medical instruments. This shift demonstrates Portugal’s growing technological sophistication and its successful transition into higher-value industries, a key factor in its improving global standing.

Portugal’s ability to increase exports to Germany while also reducing its trade deficit is a significant achievement. In 2024, Portugal’s trade deficit with Germany was the lowest it has been in eight years, improving despite the challenging global economic environment. Portuguese exports to Germany grew at a much faster pace than imports, which increased by just under 2%. This trend signals a positive shift in Portugal’s trade balance and its decreasing dependency on foreign markets.

Beyond trade, Germany remains an important partner for Portugal in tourism and investment. German tourists continue to make up a significant portion of foreign visitors to Portugal, contributing heavily to the country’s tourism revenue. Additionally, Germany is one of the largest foreign investors in Portugal, with substantial investments in key sectors such as automotive, renewable energy, and manufacturing, further strengthening the economic ties between the two countries.

Despite challenges in the German economy, including stagnation and slow growth projections, Portugal’s economic resilience and diversification position it well for continued growth in key sectors. Portugal’s growing export portfolio and ability to offer innovative, high-quality products ensure that it will remain a strong and reliable partner to Germany and other international markets.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes