The month of January 2024 marked a significant increase in Portuguese public debt, according to data recently published by the Bank of Portugal (BdP). Using the Maastricht perspective, financial liabilities increased by 7.6 billion euros, reaching a total of 270.6 billion euros.
Significant rise in Portuguese public debt
This change is mainly attributable to the increase in financial liability securities, totaling 6.4 billion euros, largely long-term issues, and to a 0.7 billion euro loan from Banco Europeu de Investimento, as indicated in the BdP press release.
Deposits by general government also rose significantly, by 6.8 billion euros. Deducting these deposits, financial liabilities nevertheless showed a net increase of 0.8 billion euros, reaching a total of 252.5 billion euros.
It is important to note that financial liabilities represent the financial obligations of the general government sector, and remain one of the most relevant macroeconomic indicators for assessing a country's financial health, often used to evaluate the overall situation of general government.
It should be noted that different methods are used to measure financial liabilities, and in Portugal, as in other European Union countries, the harmonized definition commonly used is known as the "Maastricht debt", as specified by the banking supervisor.
In conclusion, the latest financial data underline the importance of keeping a close eye on public debt, a key indicator of stability. Portugal's economy and the overall financial health of public administrations. Managing this debt wisely remains crucial to ensuring a strong, sustainable economy.
