Historical indebtedness of the economy

“In September 2020, the indebtedness of the non-financial sector stood at 738,000 million euros, of which 335,300 million euros correspond to the public sector and 402,700 million euros to the private sector”, read in a note published by Banco de Portugal.

In relation to August 2020, the indebtedness of the non-financial sector increased by 1,500 million euros. “This increase was due to an increase of 900 million euros in public sector debt and 600 million euros in private sector debt,” says the Bank of Portugal.

“The increase in public sector indebtedness was mainly reflected in the increase in indebtedness vis-à-vis public administrations (900 million euros) and vis-à-vis the financial sector (900 million euros). These increases were partially offset by the reduction in debt external (1,000 million euros) ”, says the institution.

Also according to the Bank of Portugal, the “The growth in private sector indebtedness was due to an increase in the indebtedness of households vis-à-vis the financial sector, by 300 million euros, and of companies vis-à-vis abroad, also by 300 million euros”.