Summary
In 2011, the net borrowing of the Portuguese economy decreased to 5.1% of GDP (8.3% in the previous year). The decrease was the result of the combined effects of the increase in gross saving and the decrease of the Gross Capital Formation.
The net borrowing of the General Government diminished from 9.8% of GDP in 2010 to 4.2% in 2011, partially reflecting the transfer of financial institutions’ pension funds. The counterpart of this transfer was a net borrowing of 0.2% of GDP for Financial Corporations in 2011 (net lending of 2.3% in the previous year).
The net lending of Households attained 4.2% of GDP in 2011, 0.4 percentage points less than the observed in the previous year. Gross saving decreased 6.4% in 2011, related with the decrease of 1% of Disposable Income. Compensation of employees diminished 1.2% while current taxes on income increased 10% in 2011.