Europe Dominates Portugal’s FDI Landscape in 2023


Europe emerged as the dominant force in Portugal’s foreign direct investment (FDI) landscape for the year 2023, with a staggering 86.6% of the total FDI flowing in from the continent. This significant influx of investment underscores the strong economic ties between Portugal and its European partners, solidifying Europe’s pivotal role in Portugal’s economic growth.

Among European contributors, both the Euro area and the European Union played crucial roles, representing 73.9% and 76.3% of the total FDI stock, respectively. This data highlights the deep economic integration between Portugal and its European neighbours, with Lisbon, the capital city, emerging as the primary beneficiary of these investments.

Notably, Lisbon attracted more than half of the total FDI, indicating its increasing appeal to foreign investors and positioning it as a strategic business centre in Europe.

While Europe led the charge in FDI, other regions also made notable contributions. Asia, as the second-largest source of FDI, experienced significant year-on-year growth of 12.1%, signalling increasing interest and confidence in Portugal’s market potential.

America and Africa also played their part, contributing to Portugal’s FDI landscape and highlighting the country’s diversified investment sources. In particular, Africa demonstrated the highest year-on-year growth, albeit from a smaller base.

Within Portugal, regional distribution showed Lisbon’s continued dominance in FDI attraction, followed by Northern Portugal and The Algarve. This distribution reflects the varied investment opportunities available across the country and underscores Portugal’s diverse economic landscape.

Overall, the substantial European investment not only strengthens economic ties within the continent but also positions Portugal as a key investment destination in Europe. With contributions from Asia, America, and Africa, Portugal’s global economic integration is evident, promising innovation, job creation, and economic growth across various sectors. The leading role of Lisbon in attracting FDI further cements its status as a central hub for business and investment in Europe.