Lisbon, May 20, 2025 (Lusa) - Portugal's net external debt fell to 43.9% of GDP in the first quarter of this year, the lowest figure since December 2004, representing €126.9 billion, the Bank of Portugal (BdP) announced on Tuesday.

In a note released today, the Portuguese central bank said that net external debt as a percentage of GDP fell from 50.3% in the first quarter of 2024 and 44.3% in the previous quarter, estimated at €126.5 billion.

The central bank added that this is the lowest ratio to Gross Domestic Product (GDP) ‘since December 2004’.

In the same note, the BdP reported that Portugal's International Investment Position (IIP) showed its least negative ratio in the first quarter since the last quarter of 2002.

In the period under review, the IIP remained negative but eased to -57.5% of GDP, compared with -66.9% a year earlier and -58.3% in the previous quarter.

In nominal terms, this estimates Portugal's international investment position at around €166.1 billion, compared to €166.2 billion at the end of 2023.

Of the 0.8 percentage point change in the negative GII ratio in GDP, the institution led by Mário Centeno attributed almost all (0.7 percentage points) to GDP growth.

JO/ADB // ADB.

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