Brexit blues halve Portuguese investment in UK
Portuguese investors are “fleeing” the UK as a result of last summer’s dramatic Brexit vote, but they’re showing increased interest in other territories, namely Holland, Brazil and Spain.
So says Dinheiro Vivo website, using data supplied by the Bank of Portugal.
According to BdP, Portuguese investment in UK dropped by almost 50% in the last six months of 2016.
It’s a case of “more bad news” for a Britain still embroiled in Brexit scaremongering and uncertainties.
With European Commission president Jean-Claude Juncker maintaining with his grim-faced “I told you so” stance on the issue, Dinheiro Vivo reveals that “in terms of investment relationships with the UK, Portugal appears to be gaining slightly.
“While it is true that Portuguese investors have retreated totally from the UK (Portuguese investment stock fell 48% to 1.1 billion euros at the end of 2016), BdP data also shows that British investment here has increased slightly (1%) to €8.5 billion through 2016”.
Meantime, “many British businesses” are transferring to “other apparently more stable regions” (like HSBC pulling 1000 jobs out of the UK and moving them to Paris over the next two years).
On the other side of the coin, Portuguese investment in countries like Angola and Mozambique has also bombed, by several hundred millions of euros in both territories – a lot to do with the falling price of oil – transferring instead to Holland and Brazil, who are reported to be “capturing more and more Portuguese funds”, the former up to 2.1 billion euros-worth, thanks hugely to tax perks in Holland for incoming businesses. Indeed, Holland is now the headquarters of “numerous businesses that control groups in Portugal”.
With all the changes, however, Spain remains Portugal’s largest commercial partner, says DV, with new business last year spelling increased investment of €1.4 billion.