The Portuguese economy registered a net lending of 0.9% of Gross Domestic Product (GDP) in the year ending in the second quarter of 2016, plus 0.1 percentage points than in the previous quarter. The gross savings decreased by 0.5%, with a growth of final consumption expenditure of the economy (0.6%) slightly higher than the increase of Gross Disposable Income of the nation (0.5%). GDP and Gross National Income (GNI) increased by 0.6% and 0.4% in the second quarter of 2016, respectively. The lower increase of GNI comparing with GDP reflected the reduction in the balance of property income with the Rest of the World (growth rates of -3.5% in income received and 1.8% in income paid).
The Households saving rate stood at 3.9%, 0.1 percentage points higher than in the previous quarter, reflecting the effects of the increase of disposable income slightly higher than the increase of private consumption (change rates of 0.7% and 0.6%, respectively).
The net borrowing of General Government (GG) decreased from 3.7% of GDP in the year ended in the first quarter of 2016 to 3.4%. This improvement of the GG balance resulted from the combined effect of the 0.2% increase in total revenue and a reduction of 0.4% of expenditure. Using quarterly figures and not the sum of the year ending in the quarter, the balance of the GG stood at -2.5% of GDP in the second quarter 2016 (-3.6% in the same quarter of 2015). In the first half of 2016, the net borrowing of GG was -2.8% of GDP (-4.6% of GDP in the same period of 2015).