China invested €12.5 billion in the first quarter of the year while cooling it down slightly to €11.8 billion for the second quarter. 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.
To further add to this, the accumulating risk of a collapse in the Chinese real estate market would shatter investor confidence even worse than the collapse of Evergrande, a Chinese construction company, which happened earlier in the month.
Portugal’s largest sources of foreign direct investment in the second quarter were Spain, who put €25.5 billion into the country, followed by France, at €16.9 billion, and the UK, at €13.6 billion.
Portugal is technically top of their own list, at €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 €173.8 billion.
Potentially for most people within any financial environment money is money, the bottom like returns king but sometimes one ‘deeply’ regrets having accepted large chunks of Investment Capital from typical players such as The Chinese. One Man’s opinion however a deep, deep fundamental mistake, taking any Euro, Dollar, Pound, Swiss Franc, Etcetera coming from China and alike.
By Miguel from Lisbon on 25 Aug 2023, 18:22
And yet....there seems to be a propensity to do a lot of American bashing here in comments. Interesting that the U.S. is not in the top 5 list of countries investing in the Portuguese economy, yet somehow are consistently blamed for driving up prices and creating cultural damage. People here sure do attach an outsized role to the U.S. in all the perceived societal ills, yet seem to be fine accepting money from a country known to have absorbed the vast majority of Golden Visas and commercial real estate purchases in places like Lisbon and Porto helping to drive up prices without so much as a peep. Why would that be?
By Brian from Porto on 25 Aug 2023, 20:37
The main problem is Portugal is poor actually, can't refuse money!
But rent is not high enough that many greedy renters are lazy at work which create inefficiency. Thats why landlords need to increase rent, to make renters grind harder and get better achievements.
By Big Short from Lisbon on 26 Aug 2023, 00:38
Communist China will continue "investing" in Portugal, as they are in almost every other country, so they will eventually be able to "call the tune."
By Joe from USA on 28 Aug 2023, 17:28
The worst thing the Portuguese government did was to sell their electricity to China which now overcharges the Portuguese people for their necessary use. It's no wonder over 72% of Portuguese don't have aircon , China charges too much for it.
By Marie M from Algarve on 29 Aug 2023, 09:24
Don’t take it personally Brian….. 100% reference China….. but in truth America(s) deserve everything or label given past performance so close related across your economy, political and cultural habits i.e. you really bought it up yourselves but yes blaming the Americans for recent property increased across the board which began with Golden Visa awhile ago is silly and nonsensical so don’t worry someone(s), somewhere get’s blamed for something, it is a Human favourite past time.
By MIguel from Lisbon on 31 Aug 2023, 18:56