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Statistical Press Release – National financial accounts - 4th 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 fourth quarter of 2020 and information on interlinkages between sectors. Data published incorporate revisions since January 2017, in accordance with the statistics revision policy of Banco de Portugal.

In 2020 net lending of the Portuguese economy stood at 0.1% of GDP (Chart 1). 

This outcome reflects net lending of households and financial corporations (respectively 5.9% and 2.2% of GDP), which slightly exceeded net borrowing of general government and non-financial corporations (respectively 5.7% and 2.3% of GDP). 

Compared to 2019, the net lending of the Portuguese economy decreased by 1.1 percentage points (pp). This reduction mainly reflects the decline in the general government balance by 5.8 pp and the increase in the net lending of households by 4.4 pp. There was also a decrease in the net lending of financial corporations by 0.2 pp and a reduction in the net borrowing of non-financial corporations by 0.5 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 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 (5.0% of GDP), which, in turn, financed the general government and the rest of the world (4.1% and 4.0% of GDP, respectively).

- The rest of the world financed mainly non-financial corporations (2.7% of GDP).

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

- Net financing of financial corporations to general government increased 3.6 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 financing the general government.

Concerning stocks at the end of the period, households and financial corporations showed an increase in net financial assets (14.6 pp and 2.8 pp of GDP compared to 2019), unlike general government and non-financial corporations that recorded a decrease in net financial assets (-11.8 pp and -10.4 pp compared to 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 2020, the Portuguese economy had a net financial position vis-à-vis the rest of the world of -105.4% of GDP (Chart 2), compared to -100.5% of GDP at the end of 2019.

Next update: 8 Jul. 2021


(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.