As of June 2019, external debt as measured by investment position (PII) was -100.2% of GDP compared with -100.8% at end-December 2018.
The IIP reflects the position of the economy's external financial assets and liabilities, ie the external debt calculates the indebtedness of Portuguese economic agents and consists of the difference between what the national economy owes abroad and what it has to receive from abroad.
Between December 2018 and June this year, Portugal's PII decreased by 2.7 billion euros, falling from negative 203.2 billion euros in December last year to negative 205.9 billion euros in June this year .
The BoP explained that the variation was due to the “impact of transactions (-2.2 billion) and price changes (-1-1 billion), partially offset by exchange rate variations (+0.1 billion euros). ) and other adjustments (+0.5 billion).
The negative impact of price changes on the PII results from the appreciation of liabilities, namely treasury bonds in the non-resident portfolio, and the appreciation of resident companies owned by non-residents, the regulator said.
Even so, this negative effect was mitigated by the appreciation of the assets, namely the other of the central bank and securities issued by non-residents by the financial sector.
Net external debt resulting from the IIP excluding capital instruments, gold in gold and financial derivatives, amounted to 179 billion euros in June this year. As a percentage of GDP, it amounted to 87.3%, which translates into a 1.7 percentage point drop from the end of 201a “largely due to the rise in GDP”, explained the BoP.