The indebtedness level of the economy worsened in October, having increased by €2.5bn, according to the data released by the Portuguese Central Bank (BdP).
The indebtedness level of the Portuguese economy increased again in October, surpassing the €721bn threshold, mostly due to an increase in the public sector’s indebtedness, according to the data from the BdP.
In turn, the increase in the public sector’s indebtedness was “mostly due to an increase in financing granted by the non-resident sector, general government and the financial sector”, the BdP added.
The total non-financial sector indebtedness (which includes the public sector and the private sector’s indebtedness) stood at €721.5bn, €322bn referred to the public sector and €399.5bn to the private sector.
That represents a €2.46bn increase in comparison with September. The reason for that rise is explained by a €2.8bn increase in public sector indebtedness, which was compensated by a €0.4bn decrease in private sector indebtedness.