The Bank of Portugal published updated statistics on non-financial sector indebtedness through May 2025, showing total debt rising by EUR 7.9 billion over the month to EUR 839.1 billion. Household indebtedness grew 6.1% year on year, the highest annual rate since the series began in December 2008. Public sector indebtedness increased by EUR 4.4 billion, driven mainly by external financing (+EUR 3.4 billion) linked to non-residents’ acquisition of long-term Portuguese government debt securities. It also rose versus general government (+EUR 0.4 billion), households (+EUR 0.3 billion, largely from subscriptions of savings certificates) and non-financial corporations (+EUR 0.3 billion). Private sector indebtedness increased by EUR 3.5 billion, with private corporations up EUR 2.3 billion (including +EUR 1.6 billion versus the financial sector and +EUR 0.7 billion versus abroad) and households up EUR 1.2 billion, mainly through mortgage lending. On an annual basis, private corporations’ debt increased 1.8% (up from 1.0% in the previous month), while the household annual growth rate has been rising since late 2023. The release incorporates revisions back to March 2019 under the Bank of Portugal’s statistical revision policy. The next update is scheduled for 22 August 2025.
Bank of Portugal 2025-07-23
Bank of Portugal reports EUR 7.9 billion rise in non-financial sector debt in May 2025 as household debt growth hits 6.1%
The Bank of Portugal reported a EUR 7.9 billion increase in non-financial sector indebtedness in May 2025, reaching EUR 839.1 billion. Household indebtedness rose 6.1% year on year, marking the highest annual rate since December 2008. Public sector debt increased by EUR 4.4 billion, primarily due to external financing, while private sector debt rose by EUR 3.5 billion, driven by private corporations and mortgage lending.