PORTUGUESE FOREIGN DIRECT INVESTMENT

Portuguese Foreign Direct Investment Overseas

Portuguese foreign direct investment (PFDI) increased substantially during the 90s, reflecting the growing involvement of Portuguese companies on the international market.  Up until 2000, PFDI increases were enormous, transforming Portugal into a net exporter of capital; a reversal of its traditional role.  However, PFDI declined after 2001, owing to the corporate scenario having dampened down, on both the domestic and foreign markets.

PFDIO Growth - 2008 (a)

Source: The Bank of Portugal (millions of euros) (a) Portuguese Direct Foreign Investment Overseas (gross)

Since 2002, the amount of PFDI has run between €12 million and €10 million.  In 2008, its gross figure came to some €10 million.

Over the past 10 years, the destination of PFDI has become much more diversified.  In the 90s, it was essentially channeled to Europe, the US and Brazil.  During the past decade, we can see a major shift toward the PALOPs (Portuguese-speaking African countries), especially Angola, with 5.8% of the total PFDI for 2008.

Direct Portuguese Investment Overseas
by Country of Destination 2008 (a)

Source: The Bank of Portugal (millions of euros) (a) Direct Portuguese Investment Overseas (gross)

In 2008, 68% of PFDI went to real estate, leasing and services, with 10.6% going to financial activities, 6.9% to the manufacturing industry, and 5.5% to commerce, while the remainder was invested in other business sectors.

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Foreign Direct Investment in Portugal

Foreign direct investment (FDI) in Portugal greatly increased at the beginning of the 90s, going to high levels in 1993-1994, which coincided with the Autoeuropa project - the largest foreign investment made in Portugal.  Meanwhile, a decline was experienced in the mid-90s, followed by an accentuated upturn in the past decade, because of a number of international mergers and acquisitions having occurred at that time.

The average annual figure for FDI in the past decade stands at between €21 million and €32 million.  In 2008, the gross investment figure came to €31.9 million.

FDI Growth - 2008 (a)

Source: The Bank of Portugal (millions of Euros) (a) Foreign Direct investment (gross)

The EU constitutes the principal source of foreign capital.  In 2008, the major investor countries were Germany, the UK, Spain, the Netherlands, France and Switzerland.

FDI by Country of Origin - 2008 (a)

Source: The Bank of Portugal (a) Direct Foreign Investment (gross)

Taking distribution by sectors, the manufacturing industry is the principal sector of investment.  In 2008, the manufacturing industry was at the forefront (32.1% of the total), followed by wholesalers and retailers (30%), real estate, leasing, and services (23.5%), and financial activities (4.4%).  In the same year, the construction sector ,the Electricity, Gas & Water, and those of transportation, warehousing and communications accounted for 5.8%.

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