SYNTHESIS INE@COVID-19, 4-Jan-2021

January . 04 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 11/20 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt The net lending of the economy increased to 0.4% of GDP In the year ending in the 3 rd quarter of 2021 1 , compared to the same period a year earlier: • The Portuguese economy showed an external balance of 0.4% of Gross Domestic Product (GDP) (+0.1% in the previous quarter); Net Lending(+) /Borrowing(-) by institutional sector (in % of GDP, accumulated sum of 4 quarters) • Nominal GDP increased by 1.5% (3.6% in the year ended in the 2 nd quarter of 2021); • Gross National Income (GNI) increased by 1.4% (3.7% in the previous quarter); • Gross Disposable Income (GDI) increased by 1.5% (4.0% in the previous quarter); • Households’ net lending 2 decreased by 0.5 percentage points (p.p.), to 4.9% of GDP, reflecting the decrease in gross savings; • The household savings rate stood at 11.3% of disposable income (11.7% in the previous quarter) since the 1.2% increase in private consumption (+4.5% in the previous quarter) was higher than the growth in disposable income (0.8%); • The balance of Non-Financial Corporations stood at -2.1% of GDP (-1.1 p.p. than in the previous quarter), reflecting the simultaneous increase in Gross Capital Formation (3.4%) and the compensation of employees (1.7%); • The Financial Corporations’ net lending decreased by 0.1 p.p., to 1.5% of GDP; • The net borrowing of the General Government (GG) decreased by 2.0 p.p., to 3.9% of GDP. • Taking quarterly figures as a reference and not the year ended in the quarter, the balance of the GG in the 3 rd quarter of 2021 reached a positive value of EUR 1,904.1 million, corresponding to 3.5% of GDP, which compares with -4.2% in the same period of the previous year. It should be noted, however, that this result reflects the reimbursement of the prepaid margin and respective application interest, of EUR 1,114.2 million retained upon granting of the loan, by the European Financial Stabilization Fund to the Portuguese State, under the Economic and Financial Assistance Program. The results presented correspond to preliminary estimates for the 3 rd quarter of 2021, a period characterised by the gradual easing of the restrictive measures imposed by the COVID-19 pandemic, after the general confinement experienced in the 1 st quarter. The analysis of the series temporal dynamics presented is strongly influenced by the irregularity of the intensity of the pandemic and, consequently, of the economic activity. 1 Unless otherwise indicated, the descriptive analysis and graphs below refer to the year ending in the reference quarter. 2 Includes Non-Profit Institutions Serving Households (NPISH). -2.1% 1.5% -3.9% 4.9% 0.4% -1.0% 1.6% -5.9% 5.4% 0.1% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% Non-Financial Corpora�ons Financial Corpora�ons General Government Household and NPISH Total Economy 3 rd Quarter of 2021 2 nd Quarter of 2021