Back in the game: Portugal doubles pre-pandemic peak for export-focused investment
07/01/2022 11:38
By Sergio Goncalves
LISBON, Jan 7 (Reuters) - Portugal last year more than
doubled its pre-pandemic record for investment in export-focused
projects, showing it remains an attractive destination for
foreign companies, the head of the state agency that promotes
investment and exports said.
AICEP, which offers tax breaks and other incentives for
exports and investment, attracted 2.68 billion euros ($3.05
billion) of such investment "with high added value and
innovation", after 287 million euros in 2020.
Its chief, Luis Castro Henriques, told Reuters investors
have so far shown "no signs of concern" about political
stability in Portugal before a snap general election on Jan. 30,
which was called after parliament rejected the minority
Socialist government's budget bill for this year. urn:newsml:reuters.com:*:nL8N2RU9WR
Last year's investments smashed the previous record of 1.17
billion euros in 2019, before the coronavirus pandemic.
With executives' travel curtailed by the pandemic, AICEP
began heavily using online contacts and attracted 97 investments
in 2021, "almost all of them industrial projects", with foreign
companies accounting for about 80% of all funding.
"These numbers show that Portugal is highly competitive as
we are capturing these investments in an open global
competition," Castro Henriques said, pointing out that money was
coming regularly from new sources such as South Korea and the
United States, complementing European investment.
Projects included a metalworking factory to be built by
South Korean wind tower manufacturer CS Wind 112610.KS , a
production line of components for electric car engines by U.S.
company BorgWarner, and others in the aerospace, automotive, or
pulp and paper industries.
AICEP provides incentives, tax breaks and loans from
European Union cohesion funds to companies only in
export-oriented businesses.
Projects supported under AICEP's latest five-year incentives
plan are expected to add 4.4 billion euros worth of exports, or
more than 2% of GDP, and thousands of jobs.
($1 = 0.8842 euros)
(Reporting by Sergio Goncalves, editing by Andrey Khalip and
Timothy Heritage)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))