Portugal’s public debt increases to 133.7% of GDP in 2020

Portugal’s public debt stood at 133.7% of gross domestic product (GDP), from 117.2% recorded in 2019, the Bank of Portugal revealed.

The Portuguese government had forecast the country’s public debt to reach 134.8% of GDP. The European Commission had forecast 135.1% of GDP, the Organization for Cooperation and Development Economic (OECD) 136.1%, the International Monetary Fund (IMF) 137.2% and the Public Finance Council 137.6%.

The Bank of Portugal said on Monday that “public debt from the Maastricht perspective increased at the end of 2020 to a record amount of 270.4 billion euros, 20.4 billion more compared to December 2019”.

The country’s national statistics institute (INE) also revealed that the Portuguese gross domestic product (GDP) contracted 7.6% in 2020, after a 5.9% contraction in the fourth quarter.

Portugal, which is dependent on tourism and exports, is currently under a second full national lockdown since January 15, and has been hard-hit by the pandemic.