Portugal’s non-financial sector indebtedness increases €1.1 billion in October

  • ECO News
  • 23 December 2021

The Bank of Portugal (BoP) announced this Thursday that country's non-financial sector indebtedness rose by €1.1 billion in October, to €765.6 billion. 

The country’s non-financial sector indebtedness rose by €1.1 billion in October compared to the previous month, to a total of €765.6 billion, announced the Bank of Portugal (BoP) this Thursday.

As for the private sector indebtedness (private corporations and households), it increased by €1 billion, to €420.3 billion in the tenth month of the year, according to Portugal’s central bank.

Within this sector, it can be seen that private corporations’ indebtedness rose by €6 billion, mainly due “to external indebtedness, which was partially offset by the decline of indebtedness to the financial sector”. This increase translates into a rise of 2.4% compared to October 2020, an acceleration in the pace of growth.

On the other hand, households’ indebtedness increased by €0.4 billion and “resulted in the growth of indebtedness to the financial sector”. This represents a year-on-year increase of 3.2%.

Public sector indebtedness (general government and public corporations) only grew €0.1 billion, to a total of €345.3 billion. The increase “was mainly due to external indebtedness, which was partially offset by the decline of indebtedness to the financial sector,” explains the Bank of Portugal.