Country’s indebtedness down to €761.3 billion in July

The country’s non-financial sector indebtedness (general government, corporations and households) fell by €1.2 billion in July, compared to the previous month, to €761.3 billion, according to figures released on Tuesday by the Bank of Portugal (BoP).

“In July 2021, non-financial sector indebtedness (general government, corporations and households) decreased by €1.2 billion from the previous month, to €761.3 billion,” reads the statistical information note released by the central bank.

The public sector indebtedness decreased by €3.2 billion, to €347.3 billion. According to the Bank of Portugal, this decline “was mainly explained by the external sector.”

As for the private sector indebtedness, it increased by €2 billion to €414 billion. Private corporate indebtedness to external sector and financial sector rose by €0.9 billion and €0.6 billion, respectively. At last, Household indebtedness to the financial sector grew by €0.5 billion.

“At the end of July 2021, corporations in trade and manufacturing sectors made the highest contribution to private corporate indebtedness,” adds the BoP, specifying that “this indebtedness accounted for 17.6% and 17.1% of the total, respectively. They were followed by corporations in real estate activities (11.7%) and electricity, gas and water (10.2%) sectors.”

In the case of households, total indebtedness increased by 2.8% (it had grown by 2.7% in June 2021), which is the highest rate since April 2009.

Since the beginning of the year, the Portuguese economy’s indebtedness has increased by €13.9 billion.