The Portuguese economy recorded a net lending of 2.2% of Gross Domestic Product (GDP) in the first quarter of 2026, representing a decrease of 0.3 percentage points compared with the previous quarter. Gross National Income (GNI) and Gross Disposable Income (GDI) increased by 1.6% and 1.5%, respectively. The decline in the external balance of the economy mainly reflected reductions in the balances of General Government and Non-Financial Corporations.
The disposable income of Households sector increased by 1.4% compared to the previous quarter, due to the growth of 1.4% in compensation of employees and 1.2% in Gross Value Added (GVA). The increase in disposable income, together with the growth by 1.3% of final consumption expenditure (1.4% in the previous quarter), resulted in a household savings rate of 12.3%. Households’ net lending stood at 4.1% of GDP (same as in the previous quarter), reflecting an increase in saving that exceeded the balance of capital transactions.
The balance of Non-Financial Corporations decreased by 0.2 percentage points in the first quarter of 2026, reaching -3.8% of GDP. GVA and compensation of employees paid increased by 1.7% and 1.5%, respectively, while Gross Capital Formation grew by 3.3%. The balance of Financial Corporations stood at 1.4% of GDP (the same as in the previous quarter).
The positive balance of the General Government (GG) sector remained positive in the year ending in the first quarter of 2026, reaching 0.5% of GDP, 0.2 percentage points lower than in the previous quarter. Considering quarterly values rather than the year ending in that quarter, the GG balance in the first quarter of 2026 was -510 million euros, corresponding to -0.7% of GDP, compared with 0.0% in the same period of the previous year. Compared with the same period of the previous year, total revenue increased by 6.0% and total expenditure by 7.9%.
