Public debt falls to 107.5% of GDP
Portugal’s public debt fell for the second consecutive month in September to €279.0Bn according to data from the Bank of Portugal, to a ratio of debt to GDP of 107.5%.
The reduction in debt in September was €500 million, which reflected the decrease in sovereign bond issues (-0.9Bn), particularly for short term bonds.
On the other hand, there was an increase in responsibilities on deposits (€0.4Bn) states the central bank led by Mário Centeno.
If public administrations deposits are deducted, which increased €3.5Bn, public debt would have fallen by €4.0Bn to €251.2Bn.
Looking at quarterly values, the ratio of public debt fell 2.6% on the end of the second quarter, to total €107.5% of GDP in the third quarter.
The government expects to end the year with a public debt of 103% of GDP according to estimates in the State Budget for 2024.
Next year the Bank of Portugal hopes to get the GDP to public debt ratio down to 98.9%, the lowest since 2009.