Foreign investment in Portugal: record high above EU average!

Foreign investment in Portugal: record high above EU average!

The Bank of Portugal (BdP) has found in a recent analysis that the share of foreign direct investment (FDI) in Portugal is above the Organization for Economic Co-operation and Development (OECD) average. These developments are part of a broader trend that has accompanied globalization in recent decades. Portugal is expected to record FDI stock representing 69% of gross domestic product (GDP) at the end of 2024. This corresponds to a significant increase of 37 percentage points compared to 2008.

Over the same period, FDI stocks in OECD countries increased from 25% to 53% of GDP. In the European Union (EU), FDI stocks increased from 36% to 64% of GDP. During the entire period from 2008 to 2024, the share of FDI in the Portuguese economy was on average 15 percentage points above the OECD average. The outlook for Portugal remains positive, although a slight decline in the share of FDI in GDP is forecast. However, in 2024, Portugal is expected to reach a level five percentage points above the EU average lies. The Portugal News reports about it.

Comparison with the European Union

The comparison with investment flows within the EU shows that Portugal has been below average in recent years, with the exception of 2013 and 2014, when values ​​were above the EU average. This points to the numerous challenges the country faced in attracting foreign investment. The increase in the FDI share is therefore a positive signal for economic stability and confidence in the Portuguese economy.

In addition to direct investment, the Portuguese export economy plays an important role in the international trade balance. Portugal recorded large exports to emerging and developing countries in the Western Hemisphere, including notable figures for 2017. Exports to emerging and developing countries in sub-Saharan Africa amounted to USD 2,021.25 million, underlining the potential of these markets. CEIC data provides insights into these exports.

• Exporte an Schwellen- und Entwicklungsländer in der westlichen Hemisphäre: 92.80 Mio. USD
• Exporte in Sub-Sahara-Afrika: 2,021.25 Mio. USD

These figures highlight the importance of market diversification for the Portuguese economy. The strength of foreign direct investment combined with exports could pave the way for further economic growth. Attracting international investment will be crucial to keeping Portugal at the forefront of an increasingly globalized economy.