China, in the second quarter of 2023, was the origin of 6.8% of Portugal’s foreign direct investment (FDI), slotting in as the 5th largest investor in the country, according to the Bank of Portugal.
China invested EUR12.5 billion in the first quarter of the year and EUR 11.8 billion for the second quarter, the same source added.
The slight decline in investment comes as China is struggling with a slowing economy, one that’s seen a significant decrease in exports, credit and consumer demand, having also been compromised by the early phases of demographic decline.
Portugal’s largest sources of foreign direct investment in the second quarter were Spain, who put EUR 25.5 billion into the country, followed by France, at EUR 16.9 billion, and the UK, at EUR 13.6 billion.
Portugal is technically top of their own list, at EUR 26.4 billion, thanks to a phenomenon called ‘round tripping’ which sees investment coming from Portugal into a different country like the Netherlands and Luxembourg, where the money gets sent back to Portugal through an intermediary.
All in all, the total amount of FDI in Portugal over the second quarter of the year was EUR 173.8 billion.