Statistical Press Release – International Investment Position – September 2019
At the end of September 2019, Portugal’s IIP stood at -€212.6 billion, reflecting an improvement of around €2.6 billion compared with the end of 2018 (Chart 1).
The change in the IIP was caused by transactions (€1.2 billion), exchange rate changes (€1 billion) and other adjustments (€0.5 billion), which were partly offset by price changes (-€0.1 billion).
For more detailed information on transactions, see Statistical Press Release on the Balance of payments.
The positive impact of the exchange rate changes on the IIP is mostly the result of a valuation of assets held by residents abroad denominated in US dollars arising from the appreciation of this currency against the euro.
Regarding price changes, although small in net terms, there was a valuation of Treasury bonds in non-resident portfolios in gross terms, leading to an increase in the liabilities in the IIP. In contrast, it is worth noting a valuation of assets as a result of a rise in the price of gold.
In the period under review, the IIP as a percentage of GDP1 also recorded a positive change from -105.6% at the end of 2018 to -102% at the end of September 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 €185.6 billion in September 2019. As a percentage of GDP, net external debt decreased by 2.1 p.p. between the end of 2018 and the end of September 2019. The net external debt declined from 91.2% to 89.1%, largely due to the increase in GDP (Chart 2).
Next update: 19 Feb. 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.