The non-financial sector in Portugal was 715.8 billion euros in debt at the end of 2016, of which 308.4 billion were attributed to the public sector and 407.5 billion to the private sector, the Bank of Portugal said in a statement.
The Portuguese central bank also reported that, compared to the end of 2015, the indebtedness of the non-financial sector increased by 7.4 billion euros, as the result of an increase of 11.2 billion euros in the indebtedness of the public sector and a reduction of 3.9 billion euros in private sector indebtedness.
The change in public sector debt reflects increased funding for the financial sector and private individuals, which was partially offset by the decrease in external financing.
At the private sector level, there was a reduction of 2.3 billion euros in debt owed by companies and of 1.6 billion euros by individuals, reflecting a drop in funding from the financial sector.
Portugal’s gross domestic product (GDP) at the end of 2015 totalled 179.54 billion euros, with no definitive figures for 2016, so Portugal’s non-financial sector debt will be almost four times the wealth produced annually in the country. (macauhub)