Portugal 2016

ACTIVIDADE ECONÓMICA CONTAS NACIONAIS ECONOMIC ACTIVITY NATIONAL ACCOUNTS 93 The ratio of net borrowing (corresponding to the overall current and capital account balance) to GDP widened in the course of the 1995-2000 period, to -9.6%. From then onwards, developments were conditioned by recessions. Hence, net borrowing improved up to 2003, but subsequently resumed a level of -9.0%, peaking at 11.4% in 2008. From 2011 onwards there was a noticeable improvement in this ratio, which amounted to -4.0% that year, reaching positive net lending in 2013 (2.3%). From 2014 to 2016 this ratio remained positive, albeit lower, at an average value of around 0.8% (1.0% on 2016). Recurrent current and capital account deficits since 1995 worsened the international investment position (stock of net external assets), causing deterioration of the primary income account (difference between income received from and paid to non-resident units). In 2008 the negative value of this balance reached 3.9% of GDP, leading to a difference to the same amount between GDP and gross national income (GNI). This ratio improved between 2009 and 2011 (-1.9% in 2011), worsening by 0.5 p.p. in the following year ( 2.4%). After having recovered in 2013- 14, it worsened further in 2015, reaching a more negative level than in 2012 ( 2.8% in 2015) and -2.2% in 2016.