The indebtedness of the Portuguese non-financial sector stood at 724.0 billion euros at the end of August, of which 319.8 billion euros related to the public sector and 404.2 billion euros to the private sector, the Bank of Portugal said in a statement released on Monday.

The statistical information note released by the Portuguese central bank also reported that in July non-financial sector indebtedness increased by 0.4 billion euros, due to the increase in public sector indebtedness, as private sector indebtedness remained unchanged.

The increase in public sector indebtedness was mainly due to a rise in external debt, which was partially offset by a decrease in indebtedness of general public administration, corporations and the financial sector.

In the private sector there was a decrease in the indebtedness of private companies in relation to the financial sector (0.2 billion euros), which was offset by an increase in the indebtedness of individuals to the same sector (0.2 billion euros).

Portugal’s Gross Domestic Product stood at 203 896 million euros in 2018, so the level of debt of the non-financial sector recorded at the end of August represents 3.55 times the wealth produced in the country last year. (Macauhub)