Portugal’s FDI doubles in 15 years from 32% to 69% of GDP

Portugal’s share of foreign direct investment is among the most relevant of the 27 OECD countries according to a study.

In 2024, the amount of foreign direct investment and its impact on Portugal’s GDP was among the highest in terms of percentage share, representing 69% of the wealth produced in the country.

However, in the first half of the year, Portugal lost €400 million in FDI despite being one of the most relevant out of all the 27 OECD countries.

This is according to a study done by the Bank of Portugal (BoP) which was published on Tuesday.

“At the end of 2024 the stock of foreign direct investment in Portugal represented 69% of GDP, which corresponds to an increase of 37 percentage points on the amount posted in 2008 (At the start of the Great Financial Crisis) when it represented 32% of GDP.

In other words, it has doubled in 17 years. The Bank of Portugal study also reveals that the overall stock of FDI of the 27 OECD countries went from 25% to 53% of GDP since 2008.

In the European Union it jumped collectively from 36% to 64% of GDP. But at 69% Portugal had a more relevant share of FDI than many of the other member states and above the average.

In effect, between 2008 and 2024, “the weight of FDI on the Portuguese economy was 15% above (on average) than the average of the other OECD countries.

SOURCE: Bank of Portugal

Image: Random Person for Unsplash