The Portuguese economy registered a net lending of 1.0% of Gross Domestic Product (GDP) in the year ending in the first quarter 2016, less 0.1 percentage points than in the previous quarter. The gross savings increased by 1.6%, with a growth of the Gross Disposable Income (GDI) of the nation (1.0%) slightly higher than the increase of final consumption expenditure of the economy (0.9%). GDP and Gross National Income (GNI) increased by 0.9% and 1.2% in the first quarter of 2016, respectively. The higher increase of GNI comparing with GDP reflected the improvement in the balance of property income with the Rest of the World (5.4% growth rates in income received and -0.7% in income paid).
The Households saving rate stood at 3.5%, 0.8 percentage points lower than in the previous quarter, reflecting the effects of the increase of private consumption larger than the increase of disposable income (change rates of 0.9% and 0.1%, respectively). It should be mentioned that the significant growth of private consumptions was mostly determined by the increase in the consumption of durable goods and the lower increase of disposable income reflected mainly the reduction in the transfers made by emigrants.
The net borrowing of General Government (GG) decreased from 4.4% of GDP in the year ended in the fourth quarter of 2015 to 3.8%. This improvement of the GG balance resulted from the combined effect of the 0.5% increase in revenues and a reduction of 0.6% of expenditure. Using quarterly figures and not the sum of the year ending in the quarter, the balance of the GG stood at -3.2% of GDP in the first quarter 2016 (-5.5% in the same quarter of 2015).