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Analysis and Studies - Country Analysis

Portugal: a look at the market

By SkyMinder Sales Enablement Team October 10th 2024

Portugal's history began with ancient tribes, such as the Iberians and Celts, and evolved into the Roman province of Lusitania: this foundation set the stage for the Moorish invasion in the 8th century, which introduced significant cultural influences that shaped the region. In 1139, Afonso I declared the establishment of the Kingdom of Portugal after successfully defeating the Moors, marking the nation’s emergence. This momentum continued during the Age of Discoveries in the 15th and 16th, when the country became a major maritime power, exploring new territories across Africa, Asia, and the Americas. After a union with Spain from 1580 to 1640, Portugal regained its independence and experienced a cultural renaissance. However, the 20th century brought political upheaval, with the establishment of a republic in 1910 followed by a dictatorship under Salazar. The Carnation Revolution of 1974 peacefully ended the dictatorship, restoring democracy and granting independence to Portugal's African colonies. Today, Portugal is celebrated for its rich cultural legacy and contributions to art and exploration, especially after joining the European Union in 1986.

The flag of Portugal consists of two vertical sections, with green on the left representing hope, and redo on the right that symbolized the blood shed for the nation. At its center, the coat of arms features a blue shield with five smaller shields that signify victories against Moorish kings, surrounded by seven gold castles representing the country’s fortifications and expansion. Behind this figure there is a golden armillary sphere, reflecting Portugal's significance in maritime exploration during the Age of Discoveries. Overall, the flag embodies Portugal's rich history, sacrifices, and aspirations for the future.

Portugal has a high level of specialization in Natural Cork Articles ($510M), Agglomerated Cork ($607M), Revolution Counters ($1.35B), Uncoated Paper ($1.71B), and Rosin ($185M).

 

 

In 2022, Portugal was the 48th in total exports, with a trade of $81.7B, and the 39th in total imports, with a trade of $112B.

In 2022 the most exported product was Cars, with a trade of $4.44B, ahead of Refined Petroleum ($3.65B), Motor vehicles; parts and accessories ($2.99B), Leather Footwear ($1.86B), and Uncoated Paper ($1.71B), with Spain being the major destination (25.1%), followed by France (11.6%), Germany (10.7%), United States (6.93%), and United Kingdom (5.2%).

The graphics showcases a strong reliance on European partners: in fact, Germany, Spain, France, and the United Kingdom are key suppliers in sectors like cars and motor vehicle parts, highlighting Portugal's integration into the European automotive and manufacturing supply chains.

However, refined petroleum imports show more global diversity, with the United States as the largest supplier, alongside Spain and Gibraltar. Sectors like leather footwear and uncoated paper also featured strong European ties, though there is some global sourcing, particularly from the United States and North Africa. Overall, Portugal's trade is primarily concentrated within Europe but also included significant global partnerships, especially in energy and paper products.

  1. Cars (5.43%): 24.5% Germany, 12.9% Italy, 11.8% United Kingdom, 10% Spain, 8.86% France, 4.3% Turkey, 3.13% Poland, 2.1% South Africa, 2.08% Australia, 2.08% Belgium, 1.78% Austria
  2. Refined Petroleum (4.47%): 31.5% United States, 17.6% Spain, 14.7% Gibraltar, 10.1% Netherlands, 6.07% United Kingdom, 3.24% France, 3.24% Panama, 1.77% Saudi Arabia, 1.13% Italy
  3. Motor Vehicles; parts and accessories (3.66%): 45.3% Spain, 13.9% France, 9.45% Germany, 4.2% United Kingdom, 3.82% Romania, 2.9% Slovakia, 2.54% Morocco, 1.79% Italy, 1.58% United States, 1.49% Turkey
  4. Leather Footwear (2.28%): 21.9% Germany, 17.8% France, 15.7% Netherlands, 6.68% United Kingdom, 5.88% United States, 5.55% Spain, 4.93% Denmark, 2.08% Italy, 0.8% China
  5. Uncoated Paper (2.1%): 12.2% France, 10.5% Germany, 9.71% United States, 9.21% United Kingdom, 8.39% Spain, 7.73% Italy, 6.12% Algeria, 4.75% Turkey, 4.02% Egypt, 3.22% Netherlands, 2.49% Belgium

Whereas the most imported product was Crude Petroleum, with a trade of $7.07B, followed by Cars ($4.54B), Refined Petroleum ($4.26B), Petroleum Gas ($3.69B), and Motor vehicles; parts and accessories ($2.95B), importing mostly from Spain (31.2%), Germany (10.7%), France (6.07%), China (5.47%), and Italy (5.35%).

The imports portfolio highlights a strong reliance on European partners for key products like cars and motor vehicle parts, with Germany, Spain, and France as major suppliers.

 

 

However, in the energy sector, particularly for crude petroleum and petroleum gas, Portugal shows more global diversity: Brazil, Nigeria, and Algeria dominate crude oil imports, while the United States is the largest supplier of petroleum gas, and refined petroleum imports are primarily sourced from Spain, with contributions from countries like Saudi Arabia and South Korea. Overall, while Europe remains central to Portugal’s trade, the country diversifies its energy imports globally.

  1. Crude Petroleum (6.33%): 36.1% Brazil,5% Nigeria, 11.4% Algeria, 10.7% Azerbaijan, 8.25% Angola, 4.65% United States, 1.15% Norway
  2. Cars (4.06%): 30.1% Germany, 19.9% Spain, 12.1% France, 8.22% Belgium, 3.75% Morocco, 3.39% United Kingdom, 3.29% Turkey, 2.23% Italy, 1.97% South Korea
  3. Refined Petroleum (3.81%): 37.9% Spain, 11.2% Italy, 7.78% Netherlands, 7.09% Saudi Arabia, 6.1% Russia, 5.37% Brazil, 5.34% South Korea, 4.78% Belgium, 3.59% China
  4. Petroleum Gas (3.31%): 48.1% United States, 22% Nigeria, 10.6% Spain, 5.72% Equatorial Guinea, 5.13% Trinidad and Tobago, 3.24% Russia
  5. Motor Vehicles; parts and accessories (2.64%): 40.2% Spain, 20.6% Germany, 9.31% France, 3.59% Italy, 3.49% Japan, 2.41% Belgium, 1.12% China

Between 2021 and 2022 the fastest growing exporter was Spain, with an increase of $1.34B, followed by United States ($1.14B), and Germany ($631M).

 

 

 

  1. Spain: from $19.2B to $20.5B
  2. United States: from $4.53B to $5.66B
  3. Germany: from $8.13B to $8.76B

Spain was also the country which had a fastest growth in exports, with an increase of $4.26B, ahead of Brazil ($1.72B), and China ($1.07B).

 

 

 

  1. Spain: form $30.6B to $34.9B
  2. Brazil: from $2.72B to $4.44B
  3. China: from $5.04B to $6.11B

Sources: 

https://oec.world/en

https://www.cia.gov/the-world-factbook/countries/