Foreign Investments in Portugal

General overview

At present, foreign companies represent an important source of employment and exports in Portugal. A total of 35 billion EUR was invested in Portugal from foreign sources in 2010, a sum with 9.6% higher than the previous year. In the World Economic Forum’s Global Competitiveness Report, Portugal was placed in 2011 on the 46th position from a total of 139 countries included in the survey.

In order to attract more and more foreign investors, the government of Portugal started the development of renewable energies, specifically solar energy, since the country has the second largest solar power station in the world, hoping to provide new opportunities for entrepreneurs from abroad. Moreover, it also formed the Agency for Investments and External Commerce in Portugal with the objective of offering consultancy and help in establishing foreign-owned companies in Portugal. 

Jobs in Portugal

In 2008, the Agency for Investments and External Commerce in Portugal counted the labour force to 5,625,000 people.  In 2010, there were 4,937,000 Portuguese citizens in the workforce, but the unemployment rate was pretty high, estimated at almost 11%. 61.4% of the Portuguese employees were hired in the service sector in 2010, according to the National Institute of Statistics in Portugal. Another 27.7% were employed in industry, construction, energy and water, while 10.9% worked in agriculture, forestry and fishing. Still, in 2011, the minimum salary remained among the lowest in the European Union, with only 485 EUR per month at least paid to an employee. 

Figures

Foreign investment in Portugal greatly increased at the beginning of the 1990s, then experienced a decline. The foreign capital invested in Portugal represented, in average, 2.5 % of Gross Domestic Product for the period 1996-2006. However, the average annual foreign investments in the past ten years have been estimated to sums between 21 million EUR and 32 million EUR. 

In 2008, foreign investments in Portugal reached 31.9 million EUR, according to the Bank of Portugal. 20% of the capital was brought by Germany, followed by investors in the United Kingdom, Spain, France and the Netherlands. In terms of business sectors, the manufacturing industry attracts the most foreign capital. In 2008, 32.1% of the foreign investments went to manufacturing according to the Bank of Portugal, while 30% went to retailers and 23.5% to real estate, leasing and services.

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