Investment in Portugal’s export sector hits record, accelerating

LISBON (Reuters) – Investment in Portugal’s export-oriented sectors doubled last year to hit a record high, underlining the country’s fast shift up the economic value chain, the head of the state agency for promotion of exports and investment said.

The record money flowing into Portugal’s export-oriented industrial, services and technology sectors represents a big shift for the economy by diversifying its growth drivers after a 2011-14 debt crisis and lagging behind Europe for years.

Portugal’s economy grew 2.7 percent last year, its fastest rate in 17 years.

Luis Castro Henriques, who heads the AICEP agency, said investment reached 1.9 billion euros in 2017 and will grow further this year, with a pipeline of projects worth another 2.4 billion euros under negotiation. The numbers include the fast-growing technology sector, which saw 325 million euros of new cash inflows, up from just 42 million euros in 2016.

About 55 percent of the money came from foreign investors, and AICEP expects that share to grow to 70 percent in new projects. Core European Union nations account for just over half of investment plans under negotiation, followed by the United States with 37 percent.