Portugal: Public debt fell to 95.3% of GDP in 2024, lowest in 14 years

The public debt ratio fell to 95.3% of Gross Domestic Product (GDP) in 2024, down from 97.9% the previous year and the lowest figure since June 2010, the Bank of Portugal (BdP) announced on Monday.

The amount of public debt compared to GDP fell 2.6 percentage poinrts from the 97.9% recorded at the end of 2023, below the government’s forecast of 95.9%.

This is also the lowest ratio since June 2010, when it stood at 93.6%.

In nominal terms, at the end of 2024, public debt from a Maastricht perspective – the one that counts for Brussels – totalled €270.7 billion, €8.8 billion more than at the end of the previous year.

According to the BdP, this change was mainly the result of an increase in debt securities (+€7.5 billion), especially short-term (+€5.9 billion), and loans (+€1.4 billion).

Deposit liabilities fell by €100 million, essentially due to the decrease in Treasury certificates (-€1.3 billion), which was partially offset by the growth in savings certificates (+€700 million).

Assets in general government deposits increased by €1.9 billion in 2024. Deducted from these assets, public debt grew by €6.9 billion to €257.3 billion.

In December last year, public debt from a Maastricht perspective increased by €1.5 billion compared to the previous month, to €270.7 billion.

According to the banking regulator, this reflected an increase in loans (+€1.1 billion), due to the receipt of a tranche of the Recovery and Resilience Plan (RRP, totalling €1.3 billion) and the issue of savings certificates (+€400 million).