Portugal economy debt reaches 282.7% of GDP

Total debt in the Portuguese economy, encompassing households, non-financial corporations, and public administrations, rose to 282.7% of the Gross Domestic Product (GDP) by the end of June. According to data from the Banco de Portugal, absolute debt reached 894 billion euros, marking an increase of nearly 40 billion euros during the first half of the year.

Public sector debt rose by 22.6 billion euros, reaching 393.6 billion euros. This increase was primarily driven by debt to external entities, which grew by 15.3 billion euros due to net investment in Portuguese public debt securities by non-residents. Debt to public administrations also increased by 4.1 billion euros.

Private sector debt reached approximately 500.3 billion euros, an increase of 17 billion euros. Within this sector, household debt grew by 8.2 billion euros, largely fueled by mortgage credit. Non-financial corporate debt increased by 8.8 billion euros, reflecting rises in debt to the financial sector and external entities.