In this quarterly update on institutional sectors, we present the state of Public Administrations (AP), along with estimations related to households and corporations. The data for Public Administrations is presented in raw form, while that for households and corporations is seasonally adjusted.
Key Highlights:
- Public Administrations (AP):
- Net indebtedness of Public Administrations in relation to GDP was -5.0% in Q3 2023 (-9.4% in the same quarter of 2022).
- The primary balance of Public Administrations (indebtedness net of passive interests) remained negative, with an impact on GDP of -1.2% (-5.6% in Q3 2022).
- The current balance of Public Administrations was positive, with a GDP impact of 1.1% (-1.2% in Q3 2022).
- Fiscal pressure stood at 41.2%, a 0.2 percentage point decrease from the same period in the previous year.
- Households:
- Disposable income of consuming households increased by 1.8% compared to the previous quarter.
- Consumption grew by 1.2%.
- The saving propensity of households is estimated at 6.9%, up by 0.6 percentage points from the previous quarter.
- Purchasing power of consuming households increased by 1.3% compared to the previous quarter, despite a 0.5% rise in prices.
- Corporate Sector:
- Non-financial corporate profit share, estimated at 42.5%, decreased by 0.7 percentage points from the previous quarter.
- The investment rate of non-financial corporations, at 22.2%, decreased by 0.4 percentage points compared to the previous quarter.
Analysis: In Q3 2023, the public finance scenario shows an improvement in indebtedness and a decrease in fiscal pressure compared to the same period in the previous year. The purchasing power of households, following a sharp decline in Q4 2022, continues to recover. This recovery, initiated in Q1 2023, had a slight setback in the following quarter. The same dynamic is observed in the savings propensity, which, however, remains well below pre-Covid levels. Non-financial corporations record the third consecutive decline in the profit share, albeit of lesser intensity than previous quarters. Similarly, the decrease in the investment rate, initiated in Q4 2022, continues.