Statistical Press Release – National financial accounts - 3rd 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 third quarter of 2020 and information on interlinkages between sectors.
In the year ending in the third quarter of 2020, net borrowing of the Portuguese economy stood at 0.1 per cent of GDP (Chart 1).
This result reflects the net borrowing of general government and non-financial corporations (4.0 and 2.3 per cent of GDP respectively) which, exceeded the net lending of households and financial corporations (4.3 and 2.0 per cent of GDP respectively).
In comparison with the flows for the year ending in the third quarter of 2019, the increase in net lending of households and non-financial corporations stands out (2.8 and 0.5 pp respectively), and also the decrease in the sectors of general government (-3.8 pp) and financial corporations (-0.2 pp).
Picture 1 ● Flow of funds
Values for the year ending in the quarter as a percentage of GDP
The information on interlinkages between sectors of the national financial accounts 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 third 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 and non-financial corporations were the main financial lenders of financial corporations (4.0 and 1.2 per cent of GDP), which, in turn, financed the general government and the rest of the world (4.0 and 3.3 per cent of GDP, respectively).
- The rest of the world financed mainly non-financial corporations (2.8 per cent of GDP).
In comparison with the third 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 (+2.7 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: being now financed by households and presenting an increase in their financing to financial corporations.
Concerning stocks at the end of the period, households showed an increase of 8.7 pp in net financial assets compared to the same quarter of the previous year, unlike general government and non-financial corporations that recorded a decrease in net financial assets (-5.7 pp and -3.8 pp compared to the third quarter of 2019). These changes reflect the transactions and other changes in volume and revaluations in the period under analysis, as well as the effect of the reduction in GDP.
At the end of the third quarter of 2020, the Portuguese economy had a net financial position vis-à-vis the rest of the world of -101.9 per cent of GDP (Chart 2), compared to -101.3 per cent of GDP at the end of the same quarter of 2019.
Next update: 8 Apr. 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.
