Real estate boosts FDI in Portugal

Foreign direct investment (FDI) in Portugal reached 2.002 billion euros in the first half of the year, down 57% compared to the same period in 2022, according to data released by the Bank of Portugal. FDI transactions carried out between January and June "mainly corresponded to real estate investment by non-residents in Portugal," the regulator explains.

Investors residing in European countries contributed the most to FDI in Portugal, totalling an investment of 980 million euros, followed by investors from Asia (512 million) and the Americas (298 million). On the other hand, direct investment transactions from Portugal abroad (FDI) accelerated in the first half of the year, totalling 3.4 billion euros, a 73% increase compared to the first half of 2023. "Investment by companies in the electricity, gas, and water sector in companies resident on the European mainland stood out," says the Bank of Portugal.

FDI in Portugal reached a record value at the end of the second quarter, amounting to 173.9 billion euros, more than doubling compared to 2008. Meanwhile, the stock of FDI increased by 26% in the same period, totaling 66 billion euros in June. "Both stocks have been increasing since 2008, although at different rates," notes the regulator.

As a percentage of Gross Domestic Product (GDP) and for the same period, Portugal showed an increase of 23 percentage points (pp) in FDI and a reduction of three pp in FDI, according to the Bank of Portugal. Although the share of foreign direct investment in the economies of most countries has been growing over the past few years, Portugal has recorded values ​​higher than the OECD average between 2008 and 2022, according to the Bank of Portugal. In the case of the Portuguese economy, the FDI stock represented 70% of GDP at the end of last year, compared to 30% in 2008. In OECD countries, this share increased from 23% to 51% of GDP, and in the European Union, it rose from 33% to 71% of GDP.

Disclaimer: The views expressed above are based on industry reports and related news stories and are for informational purposes only . SSIL does not guarantee the accuracy, legality, completeness, reliability of the information and or for that of subsequent links and shall not be held responsible for any action taken based on the published information.