Portuguese State, companies and family debt increased by €17Bn in 2024

Debt from the Portuguese State, companies and households increased by €17Bn in 2024, to €814.1Bn, according to data released this Friday by the Bank of Portugal.

Of this total, €454.6Bn relate to the private sector (private companies and individuals) and €359.4Bn to the public sector (public administrations and public companies).

Public sector indebtedness rose by €11.6Bn compared to 2023. An increase that “occurred mainly among non-resident entities (€10.6Bn), through debt securities, mostly long-term, and public administration entities (€3.2Bn)”, says the regulator. On the other hand, public sector indebtedness fell by €2.2Bn.

On the other hand, private sector indebtedness grew by €5.4Bn, mainly due to the increase in household indebtedness to the financial sector (€4.7Bn), through housing loans.

According to the Bank of Portugal, the “indebtedness of private companies remained stable, as the increase in indebtedness to the rest of the world and the financial sector was offset by a reduction in indebtedness to other national sectors, especially companies”.

At the end of January this year, the Minister of Finances Joaquim Miranda Sarmento said that Portugal’s public debt for 2024 was at a ratio between 96% and 97% of GDP.