LISBON, Sept. 23 (Xinhua) -- Portugal's public debt ratio fell to 93.6 percent of GDP at the end of 2024, down from 96.9 percent in 2023 and below the state budget forecast of 95.9 percent, the National Statistics Institute (INE) reported Tuesday.
In its "Excessive Deficit Procedure" notification to the EU, the INE said this marks the lowest level since 2009 when debt stood at 87.6 percent of GDP.
Finance Minister Joaquim Miranda Sarmento described the revision as "good news" and a sign of a "prudent and responsible budgetary trajectory."
He highlighted that the reduction strengthens Portugal's fiscal position, supports better credit ratings, and benefits the country overall.
The government also forecasts the public debt ratio to reach 90.2 percent of GDP in 2025, lower than the April estimate of 91.5 percent.
Miranda Sarmento noted that 2026 will be more challenging due to substantial Recovery and Resilience Plan loans but emphasized that the improved debt figures will help stabilize public accounts.
The minister reaffirmed the government's goal to reduce debt by 3-4 percentage points annually, noting that in 2024, the reduction slightly exceeded 4 percentage points.
He also acknowledged slower economic growth projections, 1.9 percent in 2025 and 1.8 percent in 2026, due to lower public investment and exports, but stressed the overall positive trajectory of public debt.
Portugal's fiscal improvements have contributed to consecutive credit rating upgrades, reflecting renewed international confidence in the country's debt management and post-crisis economic recovery. ■