In 2022, Portugal attracted 248 Foreign Direct Investment (FDI) projects, 24% more than in 2021. This is a record number for the country and places Portugal among the 10 European countries with the highest growth rate of FDI projects. Between 2018 and 2022, the country's relative weight in total FDI projects in Europe rose from 1.2 per cent to 4.2 per cent and the jobs created in Portugal represented 6.4 per cent of the total employment created in Europe.
These are some of the conclusions of the EY Attractiveness Survey Portugal, developed by consultancy firm EY, which assesses foreign investors' perceptions of the country's attractiveness as an FDI destination.
Software and IT Services, Business Services and Sales & Marketing are the sectors that attract the most investment. Most of the FDI realised was in the software and IT services sector, with 99 projects, 76 of which represent companies setting up operations in Portugal for the first time.
Almost 60% of investors expect attractiveness to improve over the next 3 years
In line with previous years of the EY Attractiveness Survey, 59% of investors expect Portugal's attractiveness to improve over the next three years. Germany, the USA, France, the UK and Spain were the countries that invested the most in Portugal. Germany, with 36 projects, is the main investor in Portuguese territory.
According to the EY report, new geographies are also increasing their relevance, such as the Netherlands and Denmark, which went from 4 and 2 projects to 14 and 8, respectively.
According to the report, 73 per cent of the investors surveyed want to invest in Portugal, compared to 67 per cent of the European average, which demonstrates Portugal's growing attractiveness and resilience. Almost 30% of investors also consider Portugal to be above the European average in terms of the availability and quality of talent in the labour market.
EY explains that the "upward trajectory" of FDI in Portugal is driven by factors such as the quality of its institutions, simplified global logistics, greater availability of Internet and green electricity and the improvement in the academic and professional training of the Portuguese labour force.
Sustainability
In terms of sustainability, the report points out that Portugal has made "commendable progress in achieving the 2030 climate goals, demonstrating its commitment to tackling the pressing issue of climate change. There is a positive mindset in Portugal with regard to accelerating the energy transition in order to gain a competitive advantage." Portugal is indeed a safe country for foreign investment and at the "forefront" of innovation and environmental sustainability.
