In April 2025, non-financial sector debt, encompassing public administrations, companies, and individuals, increased by 4.4 billion euros, reaching 829.5 billion euros, the Bank of Portugal (BdP) announced on Monday.
“Of this total, 459.9 billion euros pertained to the private sector (private companies and individuals) and 369.6 billion euros to the public sector (public administrations and public enterprises),” the banking supervisor stated in a press release.
Public sector debt rose by 4.4 billion euros.
“This change was mainly due to external factors (+2.2 billion euros, a value similar to that recorded in March), driven by the acquisition of Portuguese public debt securities by non-residents, both short and long-term, and vis-a-vis public administrations (+1.7 billion euros), reflecting increased deposit liabilities with the Treasury,” it noted.
“There was also an increase in public sector debt with individuals (+0.4 billion euros), mainly through the subscription of savings certificates, and with non-financial companies (+0.1 billion euros),” the banking supervisor explained.
Meanwhile, private sector debt remained virtually unchanged (showing a variation of +0.1 billion euros).
“Private company debt decreased by 0.9 billion euros, reflecting a reduction in debt to the rest of the world (-1.0 billion euros). Household debt increased by 0.9 billion euros, primarily through mortgage credit, as in previous months,” the Bank of Portugal’s report indicated.
Annual Growth Rates
In April 2025, private company debt rose 0.8% compared to the same month in 2024. In the previous month, it had increased by 1.3%.
The annual growth rate of household debt has been increasing since December 2023. In April 2025, household debt rose by 5.4%.
The next update on the economy’s debt will be published on July 23, 2025.
After Warning, Government Addresses Long-term Debt Challenges
The government acknowledged and addressed the “long-term challenges” in public debt and national accounts caused by population aging, following warnings from the eurozone bailout fund about budgetary impacts.
The government today acknowledged and addressed the “long-term challenges” in public debt and national accounts caused by population aging, following warnings from the eurozone bailout fund about budgetary impacts.
“The report mentions about Portugal what it says about most countries, […] that population aging and the demographic challenge exert long-term pressures on public debt, as they do on public finances and competitiveness,” stated Finance Minister Joaquim Miranda Sarmento.
Speaking to Portuguese journalists at the end of the EU finance ministers’ meeting in Luxembourg, the official noted that “the issue of demography and population aging did not arise yesterday with the European Stability Mechanism report.”
“This is something we are aware of, [that] there are long-term challenges regarding the demographic issue, and it imposes long-term pressure on public debt,” he said.
The minister also recalled that “all projections indicate” that Portuguese public debt will be, in 2026, “below the eurozone average, and this is a very important milestone that has not happened since 2008.”
