Public debt swells by €7.5Bn in 1Q

Portugal’s public debt reached its highest level since September, 2023 in March to €278.2Bn or 96.3% of GDP after a 0.4% monthly increase which meant 1Bn more on February.

In like-for-like terms, the stock of public debt saw an increase of 3.2% (€2.4Bn) in March, completing six consecutive months of annual increases according to data released on Friday by the Bank of Portugal.

In the first quarter, public debt grew 2.8% (€7.5Bn) because of structural and overseas economic factors.

According to the Bank of Portugal, Portugal’s public debt increase in March was mainly due to an increased in treasury savings bonds (€+0.7Bn) (€+0.2%Bn in February) and in loans (€+0.1Bn.

The trend in the growth of public debt contrasts with the evolution of GDP, which in the first quarter saw a like-for-like contraction of 1.5% between January and March after having grown 2.1% in the last quarter of 2024.

The Bank of Portugal also highlights that assets deposited in public administrations totalled €18.8Bn or an increase of €1.3Bn on February, but subtracted from these deposits, the public debt fell by around €200 million, to €259.5Bn.

Portugal ended 2024 with a public debt the equivalent of 94.9% of GDP, and in March this ratio climbed 1.4% to 96.3% of GDP.