Lisbon, May 21, 2026 (Lusa) – Portugal's net external debt fell to 35.67% of GDP (Gross Domestic Product) in the first quarter of this year, reaching €111 billion, the Bank of Portugal (BdP) announced on Thursday, the lowest ratio since the second quarter of 2001.

The central bank said that the net external debt-to-GDP ratio declined from 42.96% at the end of 2025 and 36.15% in the previous quarter, amounting to €110.9 billion.

Despite a higher total debt value than in the previous quarter, the BdP attributed the lower ratio to GDP growth.

The ratio stands as the lowest since the second quarter of 2001, when it reached 34.31%.

This indicator reflects net liabilities to the rest of the world, the inverse of the International Investment Position (IIP), excluding equity instruments, gold bullion, and financial derivatives.

The BdP reported that Portugal's IIP, the balance between external financial assets held by residents and liabilities issued by residents held by the rest of the world, stood at -50.5% in the first quarter. This compares to -50.2% in the previous quarter and -57.1% in the same period last year.

This estimates Portugal's international investment position at around -€157.3 billion, compared to -€154.1 billion at the end of 2025.

Regarding the 0.3 percentage-point increase in the negative IIP-to-GDP ratio, analysts attribute -1.0 percentage points to the reduction in the IIP balance, while GDP growth accounted for +0.7 percentage points.

JO/RYOL // ADB.

Lusa