The Bank of Portugal published the financial national accounts and inter-sector linkages for the second quarter of 2025, alongside additional analysis of how the financial sector has changed over the past 15 years. On a rolling four-quarter basis to Q2 2025, Portugal was a net lender to the rest of the world (2.4% of GDP), with households (4.4% of GDP), the financial sector (1.3%) and general government (0.7%) in net lending positions, while non-financial corporations were the only resident sector in net borrowing (3.9%). Households were the largest net lender and, in net terms, funded the financial sector by 1.6% of GDP, mainly through higher deposits (3.1% of GDP) and increased investment in insurance schemes and in equities and other participations (0.8% of GDP each), partly offset by higher borrowing (3.1% of GDP, notably for housing). Cross-border flows were most pronounced for the financial sector, which net financed the rest of the world by 2.6% of GDP, reflecting purchases of foreign debt securities (9.6% of GDP) partly offset by higher non-resident deposits at resident banks (7.0% of GDP). General government net financed the financial sector (1.5% of GDP) and the rest of the world (1.0% of GDP), while households net financed general government by 0.3% of GDP linked to demand for savings certificates in the first half of 2025; the rest of the world was the main net financier of non-financial corporations (2.1% of GDP), driven by non-resident investment in equity and participations (2.5% of GDP) and in corporate debt securities (1.5% of GDP), partly offset by outward equity investment by corporations (1.2% of GDP). The release incorporates revisions back to Q1 2014 under the Bank of Portugal’s statistical revision policy. The 15-year overview shows consolidated financial-sector assets and liabilities declining as a share of GDP, with net financial assets close to zero. By the end of the first half of 2025, the rest of the world accounted for 43% of financial-sector assets by counterparty, households were the largest funding source on the liability side (40%), and the share of cash and deposits in liabilities had risen to 59%; loans (35%) and debt securities (34%) were the largest asset instruments. The next update is scheduled for 9 January 2026.
Bank of Portugal 2025-10-10
Bank of Portugal publishes Q2 2025 financial national accounts showing Portugal financed the rest of the world by 2.4% of GDP
The Bank of Portugal released the financial national accounts for Q2 2025, highlighting Portugal's net lending position to the world at 2.4% of GDP. Households were the largest net lenders, primarily funding the financial sector, while non-financial corporations were net borrowers. A 15-year analysis shows a decline in financial-sector assets and liabilities as a share of GDP, with the rest of the world holding 43% of financial-sector assets by counterparty.