EY has just released the results of the "Attractiveness Survey Portugal," which aimed to analyze foreign direct investment (FDI) plans in the country and was developed by the EY European Investment Monitor. This report provides a broad overview of reforms related to policies, investments, and new partnerships. Furthermore, it offers a general idea of how all these factors address imbalances in the national labor market.
For this edition, 205 investors from 19 countries were surveyed in five different languages (Portuguese, German, English, Spanish, and French). Considering the surveyed group, the countries investing most in Portugal are France (with 19 projects), Spain (10 projects), and Germany (seven projects), focusing on key sectors such as digital (15 projects), manufacturing and transport supply (14 projects), and agri-food (12 projects). “ Given a scenario where investors' perceptions of Europe are worsening, Portugal continues to be perceived as an attractive location for foreign investment, with better results than in the other countries where EY conducted this study ,” comments Florbela Lima, EY Transaction Advisory Services Partner.
Compared to France (30%), Belgium (28%), Germany (40%) and the Netherlands (45%), 52% of study participants believe that Portugal's attractiveness will evolve positively over the next three years (the highest percentage in the group). However, only 25% plan to invest in the country over the next year, and even so, Portugal is the market with the most investment plans, followed by Germany (23%).
In Europe, 2018 saw a slowdown in foreign investment, also resulting in a reduction in FDI projects at the national level. However, even considering this scenario, 74 FDI projects were secured, corresponding to at least 6.100 new jobs created.
It was also found that, despite these figures, Portugal's attractiveness remains strong and short-term investment plans in the country are among the highest in Europe. The main factors highlighting Portugal's attractiveness were quality of life (cited by 90% of participants), the stability of the social climate (79%), telecommunications infrastructure (73%), the skill level of the local workforce (72%), and labor costs (71%). “ The results of the 'EY Attractiveness Survey' on Europe and Portugal show that the current moment of uncertainty at the global geopolitical level – including phenomena such as Brexit and disruptions to international trade – is affecting investors' perceptions and actions. Consequently, Portugal cannot afford to rest on its laurels. Priorities should focus on supporting high-tech and innovation industries, developing education and skills, and reducing taxation ,” concludes Florbela Lima.
