Majority of Swedish companies plan to invest more in Portugal in 2025

Swedish companies are planning to invest more in Portugal this year and the majority expect that their business activities will grow significantly in 2025 according to a joint survey from Business Sweden, the Swedish Embassy in Lisbon, and the Portuguese-Swedish Chamber of Commerce.

The survey found that Swedish companies doing business in Portugal were optimistic about how the Portuguese economy was doing compared to 2023 with 73% believing that business will grow according to to the ‘Business Climate Survey’ conducted in February and March of this year.

This optimism about the economic developments in Portugal means a greater willingness to invest in the Portuguese market.

The majority planned to increase their investments in Portugal over the next 12 months while Swedish investment in Portugal has exceeded €1.3Bn since 2019 with fresh opportunities identified in the energy, industry and defence sectors.

More than half of Swedish companies (51%) said they would increase investment in the Portuguese market in 2025, a higher number than had been recorded in the 2023 survey (41%).

This number is especially high in companies that have arrived in the Portuguese market more recently, particularly from 2020 onwards: of these, 68% (or two out of three) expect to increase investment in Portugal over the current year.
According to data from the Bank of Portugal, investment from Swedish companies in Portugal has grown significantly since 2019.

At the end of the first quarter, the stock of Swedish Foreign Direct Investment was around €3.1Bn, with Swedish investment in Portugal in the last six years exceeding €1.3Bn. This means that, in the last six years, the Swedish business presence in Portugal has practically doubled.

At the same time Swedish companies are also more optimistic as to the evolution of the Portuguese economy with 73% expecting an increase in activity compared to 57% in 2023.

Also, 76% of the companies surveyed were profitable in 2024 – higher than two years ago when the majority of Swedish companies that took part in the inquiry having arrived in Portugal after 2019 and operating in a wide area of sectors from pharmaceuticals, health and fintech, to digitalisation, security, automotive, energy, business services, and consumer goods.

Defence and renewable energies are other area with potential. In recent years, Swedish companies have made considerable investments in sectors that are relevant to the Portuguese economy.

In the area of Defense, and regarding recent calls not only for greater investment within NATO countries but also to invest in European equipment, the Swedish group SAAB is set to play a relevant role in several modernisation processes underway in the Portuguese Armed Forces.

SAAB was also present at AED Days, an international aeronautics event in Oeiras this week to present the Gripen E as the most modern jet fighter on the market today, promising a solid partnership for national security and development.

Securitas, IKEA, Diaverum, Essity, Ericsson and Volvo Car are among the main Swedish companies with a presence in Portugal.

Elizabeth Eklund, the Swedish Ambassador to Portugal said: “These results show that Swedish investment in Portugal is a fact and set to continue.

“Swedish companies are optimistic about the performance of the Portuguese economy and will continue to invest and create jobs.”