Economy

Portugal Emerges as Europe´s FDI Powerhouse

19 Oct 2024 3 min reading

In recent years, Portugal has emerged as one of Europe’s most attractive destinations for Foreign Direct Investment (FDI), capturing the attention of international investors and multinational corporations alike. The country has recorded an impressive 40% increase in FDI projects over the past five years, positioning itself among the top 10 preferred locations for investment in the region. This remarkable growth is highlighted in the EY Attractiveness Survey, which underscores Portugal's rising prominence in the European investment landscape.
A key factor contributing to this surge is Portugal's economic resilience. While many countries in the Eurozone have faced significant challenges, Portugal has consistently outpaced its peers in GDP growth. This robust performance has bolstered investor confidence and attracted substantial foreign capital, making it a beacon of stability in an uncertain economic environment. The country's commitment to fostering a favorable business climate has further enhanced its attractiveness to foreign investors.
Central to Portugal's economic success is its export-driven growth strategy. With exports expected to grow faster than those of the euro area, they have become a vital engine for economic expansion. This focus on international trade not only strengthens the country’s economic foundations but also positions it as an appealing base for companies looking to expand their global operations. The tangible results of this strategy are evident in recent statistics: in 2023 alone, Portugal secured 221 FDI projects, which have the potential to create over 18,000 new jobs.
This achievement allowed the country to maintain its seventh position in Europe for FDI attractiveness, according to the latest EY survey. The diversity of sectors attracting investment is another positive sign; while services dominate, manufacturing and energy also receive significant foreign interest, reflecting a broad range of opportunities across various industries.
The origins of these investments are equally noteworthy. Major investing countries include Spain, the Netherlands, Luxembourg, France, and the UK, with EU nations collectively holding 76.6% of the total FDI stock in Portugal as of 2022. This strong European backing underscores Portugal's integration into the broader European market and its appeal as a strategic gateway for international business. Looking ahead, Portugal is well-positioned to sustain its momentum as a leading European FDI destination. The country’s strategic location, skilled workforce, and commitment to innovation create an environment ripe for continued investment.
As Portugal builds on its economic strengths and investor-friendly policies, it is set to maintain its status as a preferred location for international investment, contributing to long-term economic prosperity and development. With its impressive growth trajectory and resilience amid challenges, Portugal stands as a testament to what can be achieved through strategic planning and a commitment to fostering a vibrant business ecosystem.

Economy