Algarve's International Exports Plunge: What You Need to Know About the 2023 Figures

International exports of goods from the Algarve reached nearly €293 million in 2023, according to the latest report from the Regional Coordination and Development Commission (CCDR) titled “Numbers in Focus”. This figure marks a 13.6% decrease compared to the same period last year, breaking a trend of growth observed since 2014, particularly the sharp increases seen in 2021 and 2022.

The data used in this report is sourced from the international trade statistics produced by the National Institute of Statistics (INE). Notably, 88% of regional exports are directed to other EU countries, a higher concentration compared to the national average of 70%. Over the past decade, the Algarve has strengthened its intra-community trade relations, particularly with Spain, which accounts for 38% of its exports.

An analysis based on the Classification by Major Economic Categories reveals that 68% of exported goods are primary products, meaning they are unprocessed. In 2023, high-tech goods accounted for 5.2% of total exports, consistent with the national average. Despite this, the region’s export intensity remains low, with the ratio of export value to GDP not exceeding 2.2% in 2023 (compared to 28.9% nationally). Furthermore, the Algarve's share of total national exports was only 0.38%.

The coverage rate of imports by exports was 53%, reflecting a decline from the average over the past decade.

The report highlights that the Algarve primarily exports “plant kingdom products.” These goods amounted to €170.2 million, making up 58% of total regional exports. Following this, exports of “live animals and animal products” contributed nearly 14%, while “machines and electrical equipment” accounted for 11.4%. Together, these three categories represent 83% of the region's exports.

A finer analysis at the chapter level shows that “fruits,” particularly citrus fruits, dominate exports, reaching a value of €107.5 million in 2023, which is 36.7% of regional exports. The second highest category, “seeds and oilseeds,” saw a significant drop from previous years, contributing 12.3% to total exports.

The CCDR Algarve notes that despite the lack of detailed product-level information, the decline in export value for oilseeds was influenced by a significant drop in carob prices compared to the previous year. Additionally, products from fishing and aquaculture also feature prominently, with a value of €33.7 million or 11.5% of total exports.

The report emphasizes the importance of diversifying the regional economy through the promotion of goods exports, despite the Algarve's economy primarily relying on services, particularly from foreign tourist expenditures. The CCDR Algarve underscores its commitment to enhancing the internationalization of regional SMEs through the Algarve Operational Program 2014-2020, which allocated €22.5 million for various operations aimed at boosting exports. In the upcoming Algarve Regional Program 2030, approximately €32 million will be available for projects promoting business qualification and internationalization.