Back in the game: Portugal doubles pre-pandemic peak for export-oriented investment

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LISBON, Jan. 7 (Reuters) – Portugal more than doubled its record for investments in export-oriented projects ahead of the pandemic last year, showing it remains an attractive destination for foreign companies, said the head of the state agency that promotes investments and exports.

The AICEP, which offers tax breaks and other export and investment incentives, has attracted 2.68 billion euros ($ 3.05 billion) from such “high-value-added and investment-friendly” investments. innovation ”, after 287 million euros in 2020.

Its leader, Luis Castro Henriques, told Reuters that investors had so far shown “no signs of concern” about political stability in Portugal ahead of the early parliamentary elections on January 30, which were called after that parliament rejected the socialist minority government’s budget bill for this year. . Read more

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Last year’s investments shattered the previous record of 1.17 billion euros in 2019, ahead of the coronavirus pandemic.

With executive travel curtailed by the pandemic, AICEP began to use online contacts extensively and attracted 97 investments in 2021, “almost all industrial projects,” with foreign companies accounting for around 80% of all funding.

“These figures show that Portugal is very competitive as we capture these investments in open global competition,” said Castro Henriques, noting that the money regularly came from new sources such as South Korea and the United States, supplementing European investments.

The projects included a metalworking plant to be built by South Korean wind tower manufacturer CS Wind (112610.KS), an electric car engine component production line by US company BorgWarner and others in the aerospace, automotive or pulp and paper sectors.

AICEP offers incentives, tax breaks and loans from European Union cohesion funds to companies only in export-oriented activities.

Projects supported under AICEP’s latest five-year incentive plan are expected to add 4.4 billion euros in exports, or more than 2% of GDP, and thousands of jobs.

($ 1 = € 0.8842)

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Report by Sergio Gonçalves, edited by Andrey Khalip and Timothy Heritage

Our standards: Thomson Reuters Trust Principles.


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