Portugal’s net external debt reduced to 84.5% of GDP in September – Observer
Portugal’s net external debt stood at 174.6 billion euros at the end of September, representing 84.5% of Gross Domestic Product (GDP), released by the Bank of Portugal (BdP) this Friday.
This value stays below the €176.4 billion at the end of 2020, corresponding to 88.1% of GDP.
Also according to the central bank, in September Portugal’s international investment position (IIP) became less negative, as the balance between foreign financial assets held by residents and liabilities issued by residents and held by the rest of the world went from -106.4% of GDP at the end of 2020 (-212.8 million euros) to – 100.4% of GDP (-207.4 billion euros) at the end of September 2021.
The variation in the IIP resulted, according to the Bank of Portugal, from the positive contribution from exchange rate variations (with emphasis on the appreciation of the US dollar, the Angolan kwanza, the Mozambican metical and the pound sterling, with an impact on the increase in the value of foreign assets held by residents in euros), do positive contribution from price changes (highlighting the devaluation of public debt securities held by non-residents and, in the opposite direction, the valuation of securities of Portuguese companies of the same group held by non-resident entities) and the positive contribution from transactions of 1.5 billion euros.
GDP growth also contributed to the reduction of the negative position of the IIP as a percentage of GDP.