2024-11-26 13:16:00
In a statement released today, the BdP specifies that the increase in FDI transactions, which had reached 4,200 million in the third quarter of 2023, is “mainly due to investments made by non-resident investors in the capital of Portuguese entities” (3,500 million of euros).
“This value includes 1,000 million euros relating to real estate investments”, specifies the BdP.
The BoP also states that European countries have been the ones that have invested the most in Portugal in this period.
Regarding Portuguese foreign direct investment (IPE) operations, the BoP states that they amounted to 3,300 million euros in the third quarter, against 2,000 million euros in the same quarter of 2023.
Among these operations, the investments made by Portuguese investors in entities resident in countries on the European continent stand out.
The BoP also indicates that, at the end of the third quarter of 2024, the “stock” of foreign direct investments in Portugal was 196,500 million euros, and that of Portuguese direct investments abroad was 71,500 million euros, representing, respectively , 70% and 26% of the Brazilian gross domestic product (GDP).
“Since 2008, both ‘stocks’ have increased, albeit at different rates,” says the BoP, adding that foreign direct investment in Portugal “more than doubled between the end of 2008 and the third quarter of 2024,” while Portuguese investments abroad grew by 32%.
The Portuguese central bank also states that, “when measured as a percentage of GDP, the weight of FDI increased by 25 percentage points, but the weight of IPE decreased by 4 percentage points.”
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What are the main sectors attracting foreign direct investment in Portugal as discussed by Dr. Maria Silva?
Interview between Time.news Editor and Dr. Maria Silva, Economic Expert
Time.news Editor: Welcome, Dr. Silva! Thank you for joining us today to discuss the recent surge in foreign direct investment (FDI) in Portugal. I understand that the Bank of Portugal reported an impressive increase in FDI transactions in the third quarter of 2023.
Dr. Maria Silva: Thank you for having me. Yes, it’s an exciting time for the Portuguese economy, and there’s a lot to unpack regarding this significant increase.
Editor: The data suggests that FDI transactions hit a remarkable 4.2 billion euros in that period. Can you elaborate on the primary factors driving this growth?
Dr. Silva: Certainly! According to the Bank of Portugal, a substantial part of this influx can be attributed to investments from non-resident companies. Specifically, these investments have been funneled into various sectors, including technology, renewable energy, and infrastructure, which are becoming increasingly attractive to international investors.
Editor: That’s fascinating! Portugal has traditionally been known for its tourism and agriculture. What do you think has contributed to this diversification into more industries?
Dr. Silva: It’s a combination of factors. The Portuguese government has been proactive in creating a business-friendly environment, with policies aimed at reducing bureaucracy and incentivizing innovation. Additionally, the push towards sustainability and digital transformation globally has made sectors like renewable energy and tech more appealing. Portugal’s strategic location and skilled workforce also play significant roles.
Editor: So, if we look ahead, what does this mean for Portugal’s economic landscape in the coming years? Could this trend continue?
Dr. Silva: I believe it can. The current trajectory indicates that more foreign companies are recognizing Portugal as an investment hub. If the government continues to support this growth with solid infrastructure and responsive policies, we could see FDI levels sustain, leading to job creation and heightened economic activity.
Editor: Of course, with opportunity comes challenge. What potential obstacles could impede this growth?
Dr. Silva: There are a few concerns. First, we must ensure that the internal market can handle increased investment without leading to inflationary pressures. Secondly, global economic shifts, like fluctuations in trade policies or geopolitical tensions, can impact investor confidence. Lastly, maintaining the balance between attracting foreign investment and protecting local businesses is crucial.
Editor: Those are valid points. As we wrap up, what advice would you give to local businesses in light of this investment boom?
Dr. Silva: I would encourage local businesses to embrace innovation and actively seek partnerships with these foreign investors. Collaboration can lead to knowledge transfer and increased competitiveness. Furthermore, they should remain adaptable to meet the evolving demands of both the local and international markets.
Editor: Thank you, Dr. Silva, for your insights. It’s clear that while the future looks promising, careful navigation will be key to maximizing the benefits of this FDI surge.
Dr. Silva: Thank you for having me! It’s an exciting time for Portugal, and I look forward to seeing how it unfolds.
