Portugal’s net overseas debt falls to 43.9% of GDP in March

Portugal’s net overseas debt falls to 43.9% of GDP in March

 In Balance of Payments, Economy, IPP Position, News
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Portugal’s net external debt fell to 43.9% of GDP in the first quarter of this year, the lowest level since December 2004, representing €126.9Bn, the Bank of Portugal (BdP) announced on Tuesday.

In a statement, the Portuguese central bank points out that the net external debt in relation to GDP decreased compared to 50.3% in the first quarter of 2024 and 44.3% in the previous quarter, estimated at €126.5Bn.

In the same note, the BoP says that Portugal’s International Investment Position (IIP) held the least negative position in 1Q of 2025 since 4Q of 2002.

Net overseas debt, also known as net external debt or net international investment position, represents the difference between a country’s total foreign liabilities (what it owes to foreigners) and its foreign assets (What foreigners owe it). It essentially shows the overall net position of a country’s investment in foreign debt instruments and other assets, and liabilities to foreign entities. 

In 1Q the IIP continued to be negative but less so, falling from -66.9% of GDP to -57.5% like-for-like and -58.3% QoQ.

In nominal terms, this estimates Portugal’s international investment position at around €166.1Bn, compared to €166.2Bn at the end of 2023.

Of the 0.8 percentage point change in the negative IIP ratio in GDP, the institution led by Mário Centeno attributed almost all (0.7 percentage points) to GDP growth.

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