The figure represents a decrease from the 127.3 billion euros debt recorded at the end of 2024, equivalent to 44% of GDP.
In a statement released today, the Bank of Portugal (BdP) notes that Portugal’s International Investment Position (IIP) improved from -58.3% of GDP (-168.7 billion euros) at the end of 2024 to -52.7% of GDP (159 billion euros) at the end of September, marking the least negative ratio since March 2002.
According to the BdP, this positive shift was driven by a positive financial balance of 6.9 billion euros and favorable price variations amounting to 6 billion euros. These figures reflect the appreciation of financial assets (15.1 billion euros, notably the gold held by the central bank) and the appreciation of liabilities (9.1 billion euros, primarily equity holdings).
Additionally, other adjustments contributed positively with a value of 2.5 billion euros.
Conversely, the central bank points out the negative exchange rate variations totaling 5.7 billion euros, mainly due to the depreciation of the U.S. dollar.
According to the BdP, the IIP ratio’s improvement by 5.6 percentage points in terms of GDP during the period resulted from a 2.4 percentage point contribution from GDP growth and a 3.2 percentage point contribution from nominal positive IIP changes.
The net external debt corresponds to net liabilities to abroad (the opposite of IIP, reflecting the difference between the financial assets held abroad by residents and the liabilities issued by residents and held by the rest of the world), excluding equity instruments, gold bullion, and financial derivatives.
