CONTACT INFORMATION
EN | PT
RESERVED AREA
ABOUT IMGA
INVEST WITH IMGA
SUSTAINABILITY
HIGHLIGHTS
DISTRIBUTOR NETWORK
  • NEWS
  • MACRO VIEW
  • STATISTICS & ECONOMIC INDICATORS
  • LATEST INSIGHTS
  • LAW & REGULATION
PRINCIPLES
  • IMGA’S SUSTAINABILITY PRINCIPLES
ESG POLICIES
  • ENGAGEMENT POLICY
  • REMUNERATION POLICY TRANSPARENCY
  • CURRENT LEGISLATION
IMGA SUSTAINABLE UNITED NATIONS GLOBAL COMPACT
  • MAIN INDICATORS
MUTUAL FUNDS
  • MONEY MARKET
  • SHORT-TERM
  • FIXED INCOME
  • MULTI-ASSET
  • EQUITY
  • SAVINGS & RETIREMENT
ALTERNATIVE FUNDS
  • IMGA PME FLEX
PRIVATE EQUITY FUNDS
  • HOTEL & TOURISM
  • HEALTH AND WELL-BEING
  • LOGISTICS AND RETAIL
  • RESEARCH AND DEVELOPMENT
  • SME
PERSONAL RETIREMENT SAVINGS PLANS
  • IMGA RETIREMENT SOLUTIONS
  • TRANSFER YOUR S&R FUND
  • SAVING FOR TOMORROW
  • PREPARING FOR RETIREMENT
  • TAXATION
ADDITIONAL INFORMATION
  • FUND LIST
  • COMMERCIAL CONDITIONS
  • TAXATION
IM GESTÃO DE ATIVOS
  • ABOUT IMGA
  • MAIN SHAREHOLDERS
  • HISTORICAL MILESTONES
  • ORGANISATION STRUCTURE
  • BUSINESS INDICATORS
  • MANDATORY PUBLICATIONS
  • POLICIES & PROCEDURES
  • MEMBERS
MEDIA CENTER
  • IMGA IN THE MEDIA
  • ANNOUNCEMENTS
  • AWARDS
  • EVENTS
PT EN
RESERVED AREA

Log in with your user data

New Registration
I forgot my password
  • MENU
  • ÁREA RESERVADA
  • CONTACTOS
  • ABOUT IMGA
  • SUSTAINABILITY
  • HIGHLIGHTS
  • DISTRIBUTOR NETWORK

Efetue o login com os seus dados de utilizador

Novo Registo Recuperar password

PT

|

EN
  • MENU
  • RESERVED AREA
  • CONTACT INFORMATION
  • ABOUT IMGA
  • SUSTAINABILITY
  • HIGHLIGHTS
  • DISTRIBUTOR NETWORK
  • Sustentabilidade

Efetue o login com os seus dados de utilizador

Novo Registo Recuperar password

  • IM GESTÃO DE ATIVOS
  • MEDIA CENTER
  • MUTUAL FUNDS
  • PERSONAL RETIREMENT SAVINGS PLANS
  • IMGA’S SUSTAINABILITY PRINCIPLES
  • ESG POLICIES
  • News
  • Macro View
  • Statistics & Economic Indicators
  • Latest Insights
  • Law & Regulation
  • ABOUT IMGA
  • MAIN SHAREHOLDERS
  • HISTORICAL MILESTONES
  • ORGANISATION STRUCTURE
  • BUSINESS INDICATORS
  • MANDATORY PUBLICATIONS
  • POLICIES & PROCEDURES
  • MEMBERS
  • IMGA IN THE MEDIA
  • ANNOUNCEMENTS
  • AWARDS
  • MONEY MARKET
  • SHORT-TERM
  • FIXED INCOME
  • MULTI-ASSET
  • EQUITY
  • SAVINGS AND RETIREMENT / UCITS
  • FUND LIST
  • COMMERCIAL CONDITIONS
  • TAXATION
  • SAVING FOR TOMORROW
  • IMGA RETIREMENT SOLUTIONS
  • PREPARING FOR RETIREMENT
  • INDIVIDUALS
  • ENGAGEMENT POLICY
  • REMUNERATION POLICY'S TRANSPARENCY AND INTEGRATION OF RISKS IN TERMS OF SUSTAINABILITY
  • CURRENT LEGISLATION
  • IM GESTÃO DE ATIVOS
  • MEDIA CENTER
  • MUTUAL FUNDS
  • PERSONAL RETIREMENT SAVINGS PLANS
  • IMGA’S SUSTAINABILITY PRINCIPLES
  • ESG POLICIES
  • News
  • Macro View
  • Statistics & Economic Indicators
  • Latest Insights
  • Law & Regulation
  • ABOUT IMGA
  • MAIN SHAREHOLDERS
  • HISTORICAL MILESTONES
  • ORGANISATION STRUCTURE
  • BUSINESS INDICATORS
  • MANDATORY PUBLICATIONS
  • POLICIES & PROCEDURES
  • MEMBERS
  • IMGA IN THE MEDIA
  • ANNOUNCEMENTS
  • AWARDS
  • MONEY MARKET
  • SHORT-TERM
  • FIXED INCOME
  • MULTI-ASSET
  • EQUITY
  • SAVINGS AND RETIREMENT / UCITS
  • FUND LIST
  • COMMERCIAL CONDITIONS
  • TAXATION
  • SAVING FOR TOMORROW
  • IMGA RETIREMENT SOLUTIONS
  • PREPARING FOR RETIREMENT
  • INDIVIDUALS
  • ENGAGEMENT POLICY
  • REMUNERATION POLICY'S TRANSPARENCY AND INTEGRATION OF RISKS IN TERMS OF SUSTAINABILITY
  • CURRENT LEGISLATION

Macro View

...
Macro View

December 02, 2022

Portugal Economy: Government debt in October went down to below 117% of GDP, mainly by lowering depo

reading time: 3 mins

Gross Government’s Debt in October outperformed, -216bp MoM and 116.7% of GDP; while net Debt underperformed +147bpMoM and roughly 108.4% of GDP. The difference is manly related with the Minfin reducing Deposits at Public Administration: -€9.7Bn MoM to below €20Bn, while the net debt (after deposits) increased €3.7Bn MoM, as a result of October’s poor budget execution. Finally, the new target ratio of debt to GDP: 115.4% should be reached, namely by reducing the amount of Deposits.  

The Bank of Portugal has just released, October’s Government debt data.     

The main highlights are the following:

1 – Gross Government debt (Maastricht definition), in October: €273 796Mn; -216bp MoM; +93bp YoY and 116.7% of GDP last 12months vs 12MMA (12 Months Moving Average): 123.3% and 3MMA: 119.1 (new target YE22: 115.4%);

2 – Net Government debt (after the deposits of Public Administration): €254 155Mn; +147bp MoM; +111bp YoY and 108.3% of nominal GDP vs. 12MMA: 113.2% and 3MMA: 108.4%.

Comment: Gross government debt went down 216bp MoM to €273 796Mn in line with the Government’s target YE22: €274 104Mn, and 116.7% of GDP almost in line with Government’s new target YE22: 115.4% ( we assumed GDP 4Q22 nominal growth 7.4%). The metric, Maastricht Debt, is manageable because is gross debt, before Deposits, so the Government can manage Deposits, namely in low volatility periods, can reduce Deposits and reach the target. In fact, Deposits at Public Administrations went down €9.7BnMoM to €19.6Bn vs. 12MMA: €22.6Bn . Finally Net debt increased €3.7Bn MoM to €254 155Mn, close to a record level, mainly due to the poor budget execution on October (deficit €2.7Bn).

Summing up, the actual MInfin, as was the case one year ago, is reducing Deposits to figures below €20Bn over the 4TH quarter and so, should be able to reach the target Debt to GDP ratio (Maastricht criterium) 115.4%. In periods of low volatility, it should not be a problem, while could be risky when volatility increases. Finally, net debt in October increased €3.7Bn MoM and reflects mainly October’s poor budget execution, deficit €2.7Bn.

Bank of Portugal, INE, AS Independent Research


Artigo de autoria:
António Seladas, CFA

Back
HIGHLIGHTS
News
Macro View
Statistics & Economic Indicators
Latest Insights
Law & Regulation

ABOUT IMGA

  • ABOUT IMGA
  • MANDATORY PUBLICATIONS
  • CONTACT INFORMATION

FUNDS

  • Fund List
  • Commercial Conditions
  • Taxation
  • DISTRIBUTOR NETWORK

HIGHLIGHTS

  • News
  • Macroeconomy
  • Indicators & Statistics
  • Opinion Pieces
  • Regulations & Legislation

MEDIA CENTER

  • IMGA IN THE MEDIA
  • ANNOUNCEMENTS
  • AWARDS