As a result of the country’s International Investment Position (PII), excluding equity instruments, bullion and financial derivatives, “it was reduced from 81.0% of GDP at the end of 2021 (171,100 million euros) to 76.8 % (170,000 million euros) at the end of June 2022”, said the Bank of Portugal (BdP).According to the entity, this is the lowest ratio observed since the end of 2008.
In June, the PPI, that is, the balance between foreign financial assets held by residents and liabilities issued by residents and held by the rest of the world, went from -96.1% of GDP (-203,100 million euros) at the end of 2021 to -93.1% of GDP (-206,100 million euros) at the end of June 2022.
“The contrast between the evolution of IIP, in nominal terms and as a percentage of GDP, was due to the growth of the national economy”, pointed out the BdP.
The nominal change in IIP was mainly due to the negative contribution of the devaluation of debt securities issued by non-residents and held by the Portuguese financial sector, the devaluation of Portuguese public debt securities held by non-residents, the negative contribution of financial transactions (-2,200 million euros), positive exchange rate variations on foreign assets held by residents, mainly expressed in US dollars and Angolan kwanzas (3,800 million euros).
From the reduction of 3.1 percentage points (pp) in the negative ratio of IIP to GDP, -1.3 pp resulted from the nominal change in IIP and 4.4 pp from GDP growth, pointed out the BdP.
International investment position statistics will be updated by the BdP on 18 November.
Source: Jornal de Negócios by www.jornaldenegocios.pt.
*The article has been translated based on the content of Jornal de Negócios by www.jornaldenegocios.pt. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!