Public debt hits the Government’s target. It fell to 126.2% of GDP in 2017

The public debt ratio shrunk, in the end of last year, to 126.2% of Portuguese GDP.The amount is in line with the goal that was inscribed in the 2018 State Budget and represents a 3.9 percentage points reduction in comparison to the 130.1% ratio registered in 2016.

The data were disclosed this Thursday by the Bank of Portugal. Last year, the absolute value of debt increased in 1.6 billion, ascending to 242.6 billion euros. However, the acceleration of the economy allowed the debt ratio in comparison to GDP to improve. In 2017, the economy grew 2.7%, in what was the largest growth since 2000 and that is justifiable with the acceleration of investment.

The public debt ratio registered in the end of 2017 is the lowest since December of 2012, when the ratio was also of 126.2%. This is also the second time the State was able to reduce the public debt since 2007, when the Bank of Portugal started publishing their records. Throughout this period, the public debt ratio fell only two times: in 2015, to 128.8% (a 1.8 percentage points’ reduction in comparison to 2014) and also last year. The goal for 2018 is that the ratio will fall to 123.5%.