Portuguese Debt Falls In Line With the Eurozone

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On Thursday, April 18, 2024, the European Commission published one of its European Economy Institutional Papers. This one was dedicated to Portugal. In this article, we’ll discuss what it tells us about Portuguese debt and other economic matters relating to the country.

Portuguese Debt Drops to Match Euro Area

This particular European Commission Institutional Paper contains plenty of good news if you’re considering investing in a Portugal Golden Visa. It reports on the lowering of corporate, household, private, and public debt in Portugal. Let’s discuss these in further detail below.

As profits increase, corporate debts decrease in perfect harmony. The European Commission reveals that “the corporate debt-to-GDP ratio continued to decline at a fast pace from 80% of GDP at the end of 2022 to an estimated 74% at the end of 2023 (preliminary data), converging towards the euro area average.” 

Over the same period, “the share of household debt to GDP dropped substantially from 61% in 2022 to an estimated 55% in 2023 (preliminary data)”  and that “compared to the disposable income of households, the debt ratio is estimated at 86% in September 2023 against 92% in the euro area, and is on a steady declining trend.”

In addition, “private indebtedness continued to decline, reaching the euro area average in 2023.” The positive Portuguese developments don’t stop there, as “driven by a favourable nominal growth interest rate differential and a primary surplus, its public debt-to-GDP ratio continued to contract to approximately 99% in 2023, down from 112.4% in 2022 (preliminary data).”

The Green Outlook on the Portuguese Economy

Jon Green, our Portuguese Residency by Investment specialist, greets the news with a warmth akin to a typically sunny day in Portugal. “This paper doesn’t only focus on Portuguese debt,” outlines Green. “It highlights that growth will see Portugal outstrip the rest of the Eurozone. Inflation has come down too,” he adds.

Green has some words of wisdom for potential investors too. “Residency by Investment programmes will do their due diligence on you, and you should carry out a background check on them too. If they’re located in safe, stable countries like Portugal whose debt is below the levels of fellow Southern European countries, Greece, Italy and Spain, this will earn them plus points.”

How to Secure a Portuguese Golden Visa in 2024

Has reading this article made you want to invest in Portuguese residency? Your next step should be to consult a company steeped in investment migration experience such as RIF Trust. So, don’t delay and contact us today.