Public Debt-to-GDP ratio in Q1 2017 stood at 130.5%

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Page created: Thursday, 3 August 2017 11:55 GMT | Updated: Thursday, 3 August 2017 14:35 GMT

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Budget Deficit  Défice orçamental  Dívida Pública  Public Debt

Primary surplus until June increased by 133.8 million euros compared with the same period of 2016

The General Government deficit stood at 3 075.2 million euros until June, which is 264.5 million euros higher than for the same period of 2016. The Portuguese State direct debt increased by 0.4% in June. Compared with the remaining European Union countries, Portugal recorded the third highest public debt-to-GDP-ratio and the sixth highest percentual increase on year-on-year terms.

According to the budget execution until June 2017, the General Government deficit on a public accounts perspective stood at 3 075.2 million euros, which is 264.5 million euros higher than the deficit of 2 810.7 million euros recorded in the same period of 2016. This setback resulted from the increase of 1% in revenue being lower than the 1.6% increase in expenditure. The primary balance exhibited a surplus of 2 018.1 million euros, which is 133.8 million euros lower than the figures for the same period of 2016.

In the first quarter of 2017, Portugal recorded a budget deficit (provisional) of 0.5% of GDP, which compares with the 1.6% deficit registered in the first quarter of 2016. According to Eurostat, this result does not include any impact of the recapitalization of the public bank Caixa Geral de Depósitos. The recapitalization is estimated at 4 874 million euros, of which 3 944 million euros was made by the Portuguese State, amounting to 2.1% of the projected annual GDP for 2017. The final deficit is expected to be released in September 2017.

  • As reported by the Portuguese Treasury and Debt Management Agency (IGCP), the Portuguese State direct debt stood at 244 644 million euros at the end of June 2017, which represents an increase of 0.4% from the previous month.

    The IGCP, on 17 July, issued 1 200 million euros in Treasury Bonds to the retail sector, with a yield of 1.6%, lower than the previous yield of 2% in April 2016. Since then the yield has consistently decreased.

    The State obtained the lowest yields ever recorded on the Treasury Bills auction of 6-month and 12-month maturity, achieving a new minimum over the last auction. A trend that has been observed in the auctions carried out in recent months. The IGCP auctioned 1 750 million euros in Treasury Bills, with 1 250 million euros maturing at 12 months with a yield of -0.259%, lower than the previous yield of -0.153% achieved in May, and 500 million euros maturing in six months with a yield of -0.292%, lower than the previous minimum of -0.21%.

According to Eurostat, Portugal recorded a public debt of 243 487 million euros in the first quarter of 2017, which is equivalent to 130.5% of GDP, 10 187 million euros (+1.6 pp) more than the same period last year. Compared with the remaining European Union countries, Portugal recorded the third highest public debt-to-GDP-ratio and the sixth highest percentual increase on year-on-year terms.

Thursday, 20 July 2017 14:19

Brussels, Jul. 20 (Lusa) – Public debt fell in the first quarter of the year compared with the first three months of 2016 in the euro zone and the European Union (EU), but Portugal has the third highest debt level (130.5%), afte...