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Statistical Press Release – International Investment Position - June 2019

Today, Banco de Portugal publishes statistics, in Table A.18 of the Statistical Bulletin and in BPstat, on the international investment position (IIP) for June 2019.

At the end of June 2019, Portugal’s IIP stood at -€205.9 billion, reflecting a negative change of around €2.7 billion compared with the end of 2018 (Chart 1).

The change in the IIP was caused by the impact of transactions (-€2.2 billion) and price changes (-€1.1 billion), partly offset by exchange rate changes (+€0.1 billion) and other adjustments (+€0.5 billion).

For more detailed information on transactions, see Statistical Press Release on the Balance of payments.

Regarding price changes, the negative impact on the IIP mostly reflects the valuation of residents’ liabilities, such as Portuguese Treasury bonds in non-resident portfolios and the valuation of Portuguese firms owned by non-residents. This negative effect was attenuated by the valuation of assets, such as central bank gold and securities issued by non-residents held by the financial sector.


In the period under review, the IIP as a percentage of GDP1 recorded a positive change from -100.8% at the end of 2018 to -100.2% at the end of June 2019.  

The net external debt of Portugal, which is the result of the IIP mostly excluding capital instruments, gold bullion and financial derivatives, stood at €179 billion in June 2019. As a percentage of GDP, net external debt decreased by 1.7 p.p. between the end of 2018 and the end of June 2019, from 89.0% to 87.3%, largely due to the increase in GDP (Chart 2).

The statistics compiled by Banco de Portugal will be released in accordance with the new benchmark on 10 October 2019 (additional information can be found here). 

Next update: 20 Nov. 2019


1 The nominal GDP figures used for the calculation of the ratios are published by Statistics Portugal (Instituto Nacional de Estatística – INE). For the latest quarter, and when such figures are not available, the nominal GDP of this quarter is extrapolated, based on partial information disseminated by INE. Therefore, the estimate takes into account the GDP of the same quarter of the previous year, the published year-on-year rate of change in volume for the latest quarter, and the last published figure for the year-on-year growth rate of the GDP deflator. For the series on stocks, the nominal GDP used in the calculation of the ratios corresponds to the accumulated GDP of the last four quarters, regardless of the quarter to which it relates.