Portuguese net external debt fell to 36.2% of Gross Domestic Product (GDP) at the end of 2025, the lowest rate since June 2001, totaling 110,900 million euros, the Bank of Portugal (BdP) announced this Thursday, 19th.
This value – corresponding to net liabilities abroad, excluding capital instruments, gold bars and financial derivatives – compares with the debt of 125,500 million euros recorded at the end of 2024, equivalent to 43.4% of GDP.
In a note released today, the BdP also records that Portugal’s International Investment Position (IIP) – which corresponds to the difference between financial assets abroad held by residents and liabilities issued by residents and held by the rest of the world – went from -59.0% of GDP (-170,700 million euros) at the end of 2024 to -50.3% of GDP (-154,100 million euros) at the end of 2025.
“This is the least negative ratio since September 2001”, highlights the central bank.
According to the BdP, the positive balance of the financial account, of 9,000 million euros, and positive price variations of 11,900 million euros, which reflected the appreciation of financial assets (of 24,600 million euros, with emphasis on gold held by the central bank and participation units in foreign funds held by resident investors) and the appreciation of liabilities (of 12,700 million euros, mainly by the increase in share prices held by the rest of the world).
It is also worth noting the positive contribution from other adjustments, worth 1,600 million euros.
Conversely, the central bank points to negative exchange rate variations of 5,900 million euros, mainly due to the depreciation of the US dollar.
According to the BdP, the 8.7 percentage point improvement in the IIP ratio as a percentage of GDP resulted, in 3.3 percentage points, in GDP growth and, in 5.4 percentage points, in the positive nominal variation in IIP.
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