Portugal nets record number of foreign investment projects

 In News

Portugal has never had so many foreign investment projects according to a study from Ernst & Young.

It is now considered the most attractive country in Europe to invest in short-term according to the consultants.

According to its Attractiveness Survey for 2017 Portugal attracted 95 Direct Foreign Investment project last year, 61% more than in 2016 when the number of projects was 59.

Apart from this record total, it was the biggest investment leap for the country since 2005, creating 7,657 jobs.

In terms of short-term investment, Portugal overtook Spain, France and Germany while 65% of the 203 surveyed said Portugal was an interesting place to invest while 31% said they would continue to invest over the next three years.

“The date collected by EY clearly shows that the perception of investors on Portugal has clearly changed  for the better” says Portuguese Minister for the Economy, Manuel Caldeira Cabral.

“Lisbon is once again the most attractive region, followed by the North, Centre, Algarve, Madeira, Alentejo and Azores” states the report.

The North managed to capture the largest number of projects including Euronext, Natixis, Bosch, Vestas and Zalando.

In Lisbon the report highlights companies like Cisco, Siemens and Google. Together, the two areas captured 70% of all investments.

Almost half of the projects and the majority of jobs (3,139) were in the industrial sector while research and development were in second place generating 1,420 jobs.

Portugal is seen as a country with social stability, and this was one of the key factors in Portugal’s attractiveness according to 86% of those surveyed.

But 78% put it down to the potential of upping productivity while 77% cited lower labour costs. On the other hand, most surveyed complained about Portugal’s high taxes and said the Government needed to provide more incentives to companies.