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Statistical Press Release – International Investment Position – March 2020

Today, Banco de Portugal publishes statistics, in Table A.18 of the Statistical Bulletin and in BPstat, on the international investment position (IIP) for March 2020.

At the end of March 2020, Portugal’s IIP stood at -€212.3 billion, reflecting a reduction in the negative position of around €1.7 billion compared with the end of 2019 (Chart 1).

The change in the IIP was mainly caused by price changes (+€4 billion) which were partially offset by transactions (-€1.2 billion), other adjustments (-€0.8 billion) and exchange rate changes (-€0.4 billion).

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

Regarding price changes, it is worth noting that the depreciation of equity securities in non-resident portfolios, on the liability component of the IIP, was higher than the devaluation of investment fund units, on the asset component.

The other adjustments result mainly of the closure of one Portuguese branch abroad.

In the period under review, the IIP as a percentage of GDP1 recorded a positive change of 0.6 percentage points (p.p.) from 

-100.8 per cent at the end of 2019 to -100.2 per cent at the end of March 2020.

The net external debt of Portugal, which is the result of the IIP mostly excluding capital instruments, gold bullion and financial derivatives, stood at €180.9 billion in March 2020. As a percentage of GDP, net external debt in opposition to the IIP, increased by 0.3 p.p. between the end of 2019 and the end of March 2020. The net external debt changed from 85.1 per cent to 85.4 per cent (Chart 2).

Next update: 19 Aug. 2020


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.