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Statistical Press Release – National financial accounts - 2nd quarter of 2020

Today, Banco de Portugal publishes, in Table A.6 of the Statistical Bulletin and in BPstat, national financial accounts data for the second quarter of 2020 and starts publishing information on interlinkages between sectors. This new information makes it possible to assess the inter-sector financial relationships of the economy and abroad and the construction of the flow of funds.

In the year ending in the second quarter of 2020, net lending of the Portuguese economy stood at 0.8 per cent of GDP (Chart 1).

This result reflects the net lending of households and financial corporations (4.0 and 1.9 per cent of GDP respectively) which, together, exceeded the net borrowing of non-financial corporations and general government (-3.3 and -1.9 per cent of GDP respectively).

In comparison with the flows for the year ending in the second quarter of 2019, the increase of 2.5 pp in net lending of households stands out, and also the decrease in the sectors of general government (-1.9 pp), financial corporations (-0.5 pp) and non-financial corporations (-0.2 pp).

Picture 1  Flow of funds

Values for the year ending in the quarter as a percentage of GDP

In the year ending in the second quarter of 2020 the following financial relationships stand out, between the various sectors of the economy and the rest of the world (Picture 1):

- Households were the main financial lender of financial corporations (4.5 per cent of GDP), which, in turn, financed the general government and the rest of the world (4.6 e 3.3 per cent of GDP, respectively).

- Despite the net borrowing presented by general government, it has financed non-financial corporations, the rest of the world and households (1.4, 0.9 and 0.6 per cent of GDP).

- The rest of the world financed mainly non-financial corporations (3.3 per cent of GDP), although it had presented net borrowing.

In comparison with the second quarter of 2019, the following major changes stand out in the flows of inter-sector financing:

- Net financing of financial corporations to general government increased, when compared to the same quarter of last year (+3.9 pp), which contributed to address the general government’s net borrowing already mentioned.

- Non-financial corporations presented changes in the direction of their net financial flows, and are now financed by households and net lenders of financial corporations.

Concerning stocks at the end of the period, households showed an increase of 6.4 pp in net financial assets compared to the same quarter of the previous year, unlike non-financial corporations that recorded a decrease in net financial assets (-4.5 pp compared to the second quarter of 2019). These changes reflect the transactions in the period under analysis, as well as the effect of the reduction in GDP.

At the end of the second quarter of 2020, the Portuguese economy had a net financial position vis-à-vis the rest of the world of -102.8 per cent of GDP (Chart 2), compared to -104.6 per cent of GDP at the end of the same quarter of 2019.

Next update: 11 Jan. 2021


Notes

(1) Values as a percentage of GDP in the year ending in the quarter.

(2) Cumulative flows of the last four quarters.

(3) End-of-period outstanding amounts.