Portugal’s public debt as a percentage of GDP is estimated to have fallen to 97.9%, a revision from the 99.1% calculated in April, according to data released by the National Statistics Institute (INE) on Monday.
The INE used the new base of the Portuguese National Accounts for 2021, as well as other data that have become available in the meantime, to conclude that the gross debt of the public sector fell to 97.9% of GDP in 2023 (from 111.2% in the previous year), according to the second notification under the European Union’s excessive deficit procedure.
Previously, the public debt ratio for 2023 had been calculated at 99.1% of GDP, as laid down in the first notification.
As explained by the Bank of Portugal, which also publishes this data, “in 2023, public debt from a Maastricht perspective decreased by €9.5 billion to €261.8 billion,” and “the public debt data now published incorporates a downward revision of the series of €1.2 billion in 2023.
“This revision was mainly due to the change in the universe of the general government sector, within the scope of the new national accounts base,” notes the central bank, pointing out that “this contributed to the reduction in public debt, due to the consolidation effect, since some of the reclassified entities held assets in the form of public debt instruments.”
The institution adds that “revisions associated with the updating of information sources and the introduction of improvements that were not materially relevant, for the sector as a whole, throughout the historical series” were included.
“The downward revision of the nominal value of the 2023 debt was accompanied by a revision of the public debt ratio as a percentage of GDP in the same direction due to the upward revision of GDP,” reads the bank’s release.
The public debt figure for 2022 has also been revised from 112.4% of GDP to 111.2% so that the reduction in the public debt-to-GDP ratio will continue in 2023 at 13.3 percentage points.
The document contains a forecast for the government debt ratio in 2024, which is 94.5% of GDP.
(Mariana Espírito Santo | Lusa.pt)
Source: euractiv.com
