The net lending of the economy stood at 1.4% of the Gross Domestic Product (GDP) in the year ending in the fourth quarter of 2017, 0.3 percentage points (p.p.) more than in the previous quarter.
By institutional sector, Households showed an improvement in their balance, which increased from 0.9% to 1.5% of GDP in the year ending in the fourth quarter of 2017, reflecting the higher increase in disposable income (1.7%) comparing with the growth of final consumption expenditure (0.8%). General Government (GG) net borrowing increased by 0.6 p.p. to 3.0% of GDP, mainly as a result of a 2.5% increase in social benefits and, to a lesser extent, an increase in investment and compensation of employees paid. These results incorporate the impact of the recapitalisation operation in Caixa Geral de Depósitos (CGD) implemented in the first quarter of 2017, which amounted to 3 944 million euros.
Taking into account quarterly figures and not the year ending in the quarter, the GG balance stood at around -983.4 million euros in the fourth quarter of 2017, corresponding to -2.0% of GDP (0.3% in the same period of the previous year).