The debt of the non-financial sector, which brings together public administrations, companies and individuals, increased by around 3,200 million euros in August compared to July, to 857,000 million euros, announced this Thursday, 23rd, the Bank of Portugal (BdP).
Of this total, 475,400 million euros related to the private sector (private companies and individuals) and 381,600 million euros to the public sector (public administrations and public companies).
In August, public sector debt rose by 2,400 billion euros, mainly towards public administrations (+2,300 million euros), essentially reflecting the increase in liabilities in deposits with the Treasury (+1,700 billion euros).
The BdP also points to an increase in public sector debt owed to individuals (+200 million euros), mainly through the subscription of savings certificates.
The debt of the private sector increased by 700 million euros: The debt of individuals rose by 1,000 million euros, essentially to banks, through mortgage loans, while the debt of private companies decreased by 200 million euros, mainly reflecting the reduction in loans obtained from the financial sector (-300 million euros).
In the month under review, the debt of private companies had an annual rate of change (tva) – which excludes the impact of variations that were not motivated by transactions themselves – of 2.5% compared to August 2024, accelerating compared to 2.3% in July.
Private debt increased by 7.4% compared to the same period last year, reaching a new historical maximum since the beginning of the series (December 2008).