According to data from the EY Attractiveness Survey Portugal is among the 10 European countries with the highest growth rate of FDI projects, mainly from Germany, the USA, France, the UK, and Spain and others.
The majority of FDI was in the software and IT services sector - 99 projects - of which 76 represent companies setting up operations in Portugal for the first time, reinforcing the country's attractiveness for the digital economy. Investments from Germany, the USA and France were mostly directed towards Software & IT Services (39 projects), with these three countries accounting for 39.4 per cent of all projects in the sector.
The jobs created in Portugal represented 6.4 per cent of the total jobs created in Europe, which means that the national market has attracted larger projects (when measured by the number of workers).
Talent is one of the factors in which Portugal is in the best position when compared to other European countries. Around 29 per cent of investors consider Portugal to be above the European average regarding the availability and quality of talent in the labour market.
The EY Attractiveness Survey Portugal shows that although Portugal needs to improve its awareness of innovation, it is in line with Europe regarding data protection and the availability of labour with technological skills. Education, financial instruments, and tax policies are key factors for Portugal to become a leader in innovation.
Regarding sustainability, Portugal has made commendable progress towards achieving the 2030 climate goals. Portugal has a positive mindset about accelerating the energy transition to gain a competitive advantage. Portugal presents itself as a safe country for foreign investment and is at the forefront of innovation and environmental sustainability.
Investors who took part in the EY Attractiveness Survey Portugal say they intend to invest in Portugal over the next three years: sales and marketing accounts for 52 per cent of potential investment decisions, with a very low percentage of investors reducing their presence (8 per cent); R&D is the second most likely category for investors to invest in, and business services comes in third, with 44 per cent of investors indicating their intention to invest in this sector.
Looking ahead to next year, the survey, conducted between February and April 2023 among a representative panel of 202 international decision-makers, shows that short-term investment expectations are encouraging. 72 per cent of investors plan to establish or expand their activities in Portugal in the next year, a significant increase from the 62 per cent recorded last year and above the European average of 67 per cent.
These are some of the conclusions of the EY Attractiveness Survey Portugal, which evaluates foreign investors' perceptions of the country's attractiveness as an FDI destination. Attractiveness is defined in this survey as a combination of image, investor confidence and the perception of a country or region's ability to offer the most competitive benefits for FDI.
Access the survey here.