The Portuguese economy reinforced its financing capacities in 2017
INE reveals data showing that families and companies improved the State's financing capacities last year.
The Portuguese economy ended last year with a financing ability that corresponds to 1.4% of GDP, which equals an improvement in comparison to the previous year, according to Statistics Portugal (INE). Families and companies made positive contributions to this evolution.
“The net lending of the economy stood at 1.4% of the Gross Domestic Product (GDP) in the year ending in the fourth quarter of 2017, 0.3 percentage points (p.p.) more than in the previous quarter”, INE states. The rate from the last quarter of 2017 allows an annual value.
Families and companies contributed to this improvement, except for financial institutions and Public Administration, due to the 3,944 million euros from CGD’s recapitalization.
“The net lending of Households reached 1.5% of GDP in the year ending in the fourth quarter of 2017, mainly reflecting an increase of 20.6% in savings”, INE writes.
As for companies, there was a decrease in indebtedness: “Non-financial corporations’ net borrowing decreased by 0.3 p.p. to 1.2% of GDP in the fourth quarter of 2017”, according to INE.
INE adds: “The sector’s net lending represented 4.0% of GDP in the fourth quarter of 2017, 0.1 p.p. less than in the previous quarter. The high levels of the sector’s net lending reflect the effect of the State’s capital injection in Caixa Geral de Depósitos in the first quarter of 2017, which amounted to 3 944 million euros”.
This operation also worsened the Portuguese State’s indebtedness levels, whose indebtedness needs worsened from 2.4% of GDP to 3%.
