The net lending of Portuguese economy stood at 0.6% of Gross Domestic Product (GDP) in the year ending in the first quarter of 2020, less 0.2 percentage points than in the previous quarter. Gross Disposable Income (GDI) and nominal GDP remained almost unchanged in the first quarter.
The net lending of households' sector increased by 0.5 percentage points, to 2.1% of GDP in the year ending in the first quarter of 2020 and the savings increased to 7.4% (6.8% in the previous quarter). This result mainly reflects two effects: the increase by 0.9% in compensation of employees and the slight reduction in final consumption. Considering quarterly figures rather than the sum of four quarters, the household savings rate increased 2.9 percentage points in the first quarter of 2020 compared to the same period of the previous year.
The balance of Non-Financial Corporations diminished 0.3 percentage points in the first quarter, standing at -3.8% of GDP, due to the 0.4% reduction in nominal Gross Value Added (GVA). The net lending of Financial Corporations decreased to 2.4%.
The balance of the General Government (GG) sector registered an decrease of 0.3 percentage points in the year ending in the first quarter of 2020, moving from a positive balance in the previous quarter to a negative one (-0.1% of GDP). Considering quarterly figures rather than the sum of four quarters, the net balance of the GG was negative in the first quarter 2020, attaining -570.9 million euro (-1.1% of GDP, comparing to 0.1% one year before), with an increase in total expenditure (4.3%) higher than in total revenue (1.1%).
Despite the circumstances determined by the pandemic COVID-19, Statistics Portugal will try to maintain the statistical production and release calendar, although some adjustments might occur associated with the impact of the pandemic in obtaining primary information. For this reason, Statistics Portugal asks for the best collaboration by firms, households and public entities in answering to Statistics Portugal‘s requests to obtain information, using Internet and telephone as alternative channels to face-to-face contacts. The quality of official statistics, particularly its ability to identify the impacts of the COVID-19 pandemic, depends crucially on this collaboration that Statistics Portugal is grateful for in advance.