LISBON, Aug. 21 (Xinhua) -- The total debt of Portugal's non-financial sector grew by 39.6 billion euros (46.33 billion U.S. dollars) in the first half of 2026, reaching 894.0 billion euros (1.05 trillion dollars), the Bank of Portugal said in a report on Friday, with both the public and private sectors recording significant increases.
Public sector debt rose 22.6 billion euros (26.44 billion dollars), driven primarily by a surge in foreign financing of 15.3 billion euros (17.90 billion dollars), largely reflecting net investment by non-residents in Portuguese public debt securities, the report said.
Private sector debt increased by 17.0 billion euros (19.89 billion dollars). Household debt grew 8.2 billion euros (9.59 billion dollars), mostly through the financial sector. Corporate debt rose 8.8 billion euros (10.30 billion dollars), reflecting increased financing from the financial sector, foreign sources and other non-financial companies, the report added.
The total debt-to-GDP ratio rose by more than 4 percentage points compared with the end of 2025, reflecting debt growth outpacing economic output. The public sector ratio climbed from 120.9 percent to 124.5 percent of GDP, while the private sector ratio edged up from 157.6 percent to 158.2 percent, according to the report.
The Bank of Portugal noted, however, that despite the debt increase in two consecutive quarters, the combined ratio remains far below the peak of 283 percent of GDP recorded in March 2021. ■