Foreign direct investment (FDI) in Portugal reached €4.1 billion during the first half of the year, with €1.6 billion specifically directed towards real estate, the Bank of Portugal (BdP) announced on Tuesday.

This influx of foreign capital has raised the total direct investment from abroad to 67% of the country's GDP.

According to the Bank, this figure is more than double the €2.2 billion recorded in the same period of 2023, largely driven by investments from non-resident investors into the equity of Portuguese companies.

In the first six months of the year, European investors led the way in pouring capital into Portugal, contributing a total of €3.218 billion. They were followed by investors from America, who invested €441.25 million, Asia with €274.55 million, and Africa with €220.25 million.

Meanwhile, Portugal's direct investment abroad (DIA) amounted to €2.6 billion during this period, lower than the €3.4 billion invested in the same timeframe in 2023. Of the total outgoing investment, €2.533 billion was directed toward European countries.

By the end of the first half of this year, foreign direct investment in Portugal had reached a total of €184 billion, whilst Portugal's direct investment abroad stood at €67.6 billion, Portugal Resident reports.

These figures accounted for 67% and 25% of Portugal’s GDP, respectively.

According to the central bank: “Since 2008, both amounts have increased, albeit at different rates: FDI more than doubled between the end of 2008 and the first half of 2024, while DIA grew by 29%.”

When expressed as a percentage of GDP, the share of foreign direct investment increased by 22 percentage points, while the share of DIA fell by five percentage points.

As of the end of the first half of 2024, the sectors labelled as ‘other activities’ and those involving industry, electricity, gas, and water remained the most attractive for direct investment, making up 39% and 14% of the DIA in Portugal, respectively.