Foreign direct investment in Portugal totalled €4.1 billion in the first half of the year – €1.6 billion of which was in real estate – bringing the direct investment from abroad to 67% of GDP, the Bank of Portugal (BdP) has announced today.
According to the Bank, the figure is more than double the €2.2 billion quantified during the first half of 2023, and is mainly due to investment by non-resident investors in the capital of Portuguese entities.
During the first six months of the year, investors resident in European countries invested the most in Portugal – totalling €3.218 billion – followed by those from America (€441.25 million), Asia (€274.55 million) and Africa (€220.25 million).
Conversely, regarding Portugal’s direct investment abroad (DIA), transactions in the first half of the year totalled €2.6 billion (below the €3.4 billion during the same period in 2023), of which €2.533 billion was channelled to European countries.
At the end of the first half of this year, the stock of foreign direct investment in Portugal (total accumulated value) totalled €184 billion, while the stock of direct investment abroad was €67.6 billion.
These amounts represented 67% and 25% of Portugal’s Gross Domestic Product (GDP), respectively.
The BdP explains that “since 2008, both amounts have increased, albeit at different rates: FDI more than doubled between the end of 2008 and the first half of 2024, while DIA grew by 29 %”.
When measured as a percentage of GDP, the weight of FDI increased by 22 percentage points, but the weight of DIA fell by five percentage points.
At the end of the first half of 2024, the economic sectors of ‘other activities’ and industry, electricity, gas and water continued to attract the most direct investment — they accounted for 39% and 14%, respectively, of the FDI in Portugal.
Breaking down ‘other activities’, the aggregates that concentrated the highest value of FDI were ‘education, health, other social and personal service activities and other activities’, including financial and insurance activities (€40.9 billion), and ‘consultancy and administrative activities’ (€22.5 billion).
Concerning direct investment income, in the first half of the year, FDI and DIA totalled €5.6 billion (€1.1 billion more than in the same period of the previous year) and €2.7 billion (€200 million less than in the same period of the previous year) respectively.
Source: portugalresident
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