Portugal's economy financed external sector by 2.3% of GDP

The Portuguese economy financed the external sector by 2.3% of Gross Domestic Product (GDP) in the 12 months ending in June, according to data released by the Banco de Portugal (BdP). This figure represents a 0.2 percentage point reduction compared to the previous year.

Households showed the highest financing capacity at 4.1% of GDP, net financing all other sectors, including the financial sector (1.4% of GDP), non-financial corporations (0.9% of GDP), public administration (0.9% of GDP), and the rest of the world (0.9% of GDP). Other sectors with financing capacity included the financial sector at 0.8% and public administration at 0.7% of GDP.

In contrast, non-financial corporations showed a financing need of 3.3% of GDP. The rest of the world was the primary financier for non-financial corporations, providing a net financing of 3.5% of GDP. Within the financial sector, loans to households increased to 4.6% of GDP, primarily for housing.