By Andrea Hargraves 
With an 11% drop in projects raised for the national economy, Portugal followed the European downward trend, but found itself overtaking Poland, where investment in North America was decisive in achieving sixth place in the ranking compiled by EY.
Poland has overtaken Portugal as a destination for foreign direct investment (FDI), moving the national economy to seventh place in the ranking, according to EY’s annual report on the subject. However, the Portuguese economy ranked fourth in Europe for IT and software services projects, an indicator of digital investment and development.
The ranking, compiled by EY as part of the Portugal Attractiveness Survey 2024, sees the country drop one place in terms of FDI destinations by number of projects, an indicator that has fallen by 11%, following the trend seen in the rest of Europe. Poland thus outperforms the Portuguese economy in another indicator, a country often used as a national comparison for the Eastern Bloc that joined the EU years later.
However, 84% of investors surveyed see Portugal as still attractive for setting up or expanding their operations in the country in 2025, placing the country above the European average (72%), with 77% expecting an improvement in Portugal’s attractiveness for FDI in the next three years, up from 49% in 2021.
“This is an important and structured topic for Portugal today, but above all for the future,” said the Secretary of State for the Economy, João Rui Ferreira, at the presentation of the survey conducted at EY headquarters, in Lisbon, on Tuesday. . Edit
The foreign minister stressed that it was essential “not to lose sight of what we have been able to achieve,” and asked the country to focus on “looking to the future and thinking about how to do better.”
Among the countries that invest the most in the country, the United States, France and Germany stand out, which together represent more than 40% of foreign direct investment projects on the national territory, with Software and IT Services The majority of investments are brought together with 40 projects coming from these geographies.
On the other hand, the geographical concentration of these investments is clear, with Lisbon and Porto accounting for the bulk of FDI projects in the country, despite the declining trend. The two national metropolitan areas, together with the central area, account for more than 95% of investments in 2023.
Miguel Farinha, Country Managing Partner From the Portuguese EY group, it is considered that “Portugal, despite the decrease in the number of FDI projects in 2023, continues to confirm itself as a stable and very attractive investment destination.”
“Staying in the top 10 European countries that deserve greater confidence from foreign investors is a clear sign of the country’s gradual growth, which is internationally distinguished by the qualification of its workforce and being at the forefront of innovation, technological development and environmental sustainability.”