INE review public debt upwards to 130.2% of GDP in 2014 – Journal of Business – Portugal

The INE forward today with a public debt amounting to more than 130% of GDP for 2014, an upward revision compared to 128.7% that had to be reported in particular by the Bank of Portugal and given by the government. The INE revision also affected the debt of previous years, so that the increase of 0.5 points in the “stock” of debt between 2013 and 2014 is slightly smaller than estimated by the central bank.

The INE forward today with a public debt of value in 2014 of 130.2% of GDP last year, an upward revision compared to 128.7% coming to be reported by the Bank of Portugal and given by the government. Reading the INE also revised upwards the debt amounts from previous years, which dictates an increase over the debt of 2013 (now in 129.7%) 0.5 points of GDP, which is slightly below the 0.7 points that were being made.

explain the increase in the debt burden are upward revisions of the debt but mainly a significant downward revision of Portuguese GDP for the years 2012 , 2013 and 2014.

The INE announced the new public debt values ​​in the notification by excessive deficits sent to Brussels Thursday, March 26, surprising with higher values ​​than those who came to now being reported by INE (2012 and 2013) and Banco de Portugal (2014), no apparent explanation for what happened. In another publication, the institute then reveals that held significant downward revisions of GDP in several years, with significant implications for the debt to GDP ratio.

With regard to 2014, the upward revision of the stock of government indebtedness was 1.5 points (from 128.7% to 130.2% of GDP), of which about one percentage point is explained by GDP effect. The remaining 0.5 points (or EUR 800 million) are really the result of an upward revision in the debt value, last year, reached after all, to 225.3 billion.

For 2013, the debt burden in GDP was revised upwards from 128% to 129.7% of GDP, an increase of 1.6 points, of which 1.4 are explained by GDP effect, show the Business calculations. The debt figure was also revised upwards, but only EUR 400 million (0.2% of GDP).

Finally, in 2012, the GDP effect explains almost all of the increase in weight debt in the economy, from 124.8% to 125.8% of GDP.

Accounts made, public debt increased by 29.6 billion euros between 2011 and 2014, some over one billion euros than previously thought. And its share in GDP increased from 111.1% to 130.2% of GDP, accounts for the INE.

The increase in public debt and its share of GDP are the variables that are more worried analysts on the future of financial development of the national economy and the state. Having missed the plan together with the troika-dropping “stock” of public debt in 2014, still within the period of the adjustment program, the Executive promises a reversal of the upward trend in 2015, for which will have a decrease in deposits that has planned and will use to pay off debt. The notification sent to Brussels, the INE includes provision of miistério of Finance:. A stock of debt of 125.7% of GDP

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