The current saving in the economy increased in the 3rd quarter as the result of the slightly higher growth of disposable income higher than the increase in final consumption expenditure in the economy. This increase was offset by the decrease in the balance of capital transfers so that the net lending of the economy stood at 1.3% of GDP.
The net lending of Households decreased to 1.3% of GDP in the year ending in the 3rd quarter of 2015 (0.6 p.p. less than in the previous quarter). The Households saving rate stood at 4.0% (0.8 p.p. less than in the previous quarter), reflecting the combined effects of the increase in private consumption and a slight decline in the disposable income of households (change rates of 0.8% and -0.1%, respectively). The net lending of the Non-financial Corporations steadied at 0.6% of GDP, just as the rate of investment in this sector (20.4% of GDP).
The net borrowing of the General Government (GG) dropped from 6.4% of GDP in the year ended in the second quarter of 2015 to 3.2% in the 3rd quarter of 2015. The decrease in the balance by 3.2 p.p. of GDP mainly reflects the negative impact in the second quarter from the recording as capital transfer of the capitalization of Novo Banco. Reflecting the symmetrical effect, the net lending of Financial Corporations decreased from 5.1% to 2.6% between the two periods.
Considering the sum of the first three quarters of 2015, the overall deficit of the GG stood at 4,843.7 million Euros, corresponding to 3.6% of GDP (8.9% of GDP in the same period last year, 5.1% excluding the capitalization of the Novo Banco).