Bank of Portugal reports non-financial sector debt at EUR 848.2bn as household indebtedness reaches a new record

The Bank of Portugal published updated July 2025 statistics on non-financial sector indebtedness, showing total debt rising by EUR 1.2bn over the month to EUR 848.2bn. Public sector indebtedness increased by EUR 1.0bn, while private sector indebtedness rose by EUR 0.2bn. Total debt comprised EUR 469.1bn for the private sector (private companies and households) and EUR 379.1bn for the public sector (general government and public companies). The monthly increase in public sector debt was driven mainly by higher liabilities to non-residents (+EUR 0.6bn), largely reflecting net non-resident investment in long-term Portuguese government debt securities (+EUR 0.5bn), alongside higher liabilities to households (+EUR 0.3bn) linked mainly to subscriptions of savings certificates. Within the private sector, household debt increased by EUR 1.1bn mainly vis-à-vis banks via housing credit, while private companies’ debt fell by EUR 0.9bn, primarily due to amortisation of long-term debt securities held by non-residents (EUR 0.7bn). On an annual basis, private companies’ indebtedness rose 2.0% year on year (down from 2.6% in June), and household indebtedness increased 7.2% year on year, reaching a new all-time high since the series began in December 2008. The next update is scheduled for 23 October 2025.