Over the past decade, Portugal has grown into a diversified and service-based economy, increasingly oriented towards technology and innovation.  

Manufacturing industries are undergoing significant transformation and investing strongly in disruptive solutions to increase their competitiveness: the automotive sector, aeronautics, automation and robotics, pharma and medtech, and renewable energies are just a few examples. On the other hand, traditional industries like textiles, footwear, agri-food and building materials, have turned into high-value businesses, blending tradition and innovation to provide sustainable high-tech products. 

At the same time, more and more international companies from various sectors are expanding their competence centres to Portugal, many of them specialised in high value-added activities, such as software development, data management, cloud, blockchain, cyber security and artificial intelligence. 

Portugal’s international outlook and growing participation in global production chains have played a key role in the Portuguese economy.  

Today, national exports represent 50% of GDP, and Portuguese products and services are becoming internationally recognised for their quality, design, environmental concern and differentiation. 

Among Portugal's main exports are tourism, machinery, motor vehicles and transport equipment, common metals, mineral fuels, plastic and rubber, agricultural products and chemicals. The country’s top export markets include Spain, France, Germany, the UK, U.S., Netherlands, Italy, Belgium, Ireland and Angola. 

As a business-friendly country with a welcoming culture and internationally recognised talent, Portugal is considered a top destination for foreign direct investment (FDI).

In 2022, the country registered a record-breaking 248 FDI projects and achieved the second highest growth in FDI attraction among the European top 10, according to the latest EY Attractiveness Survey – Portugal. Currently, the main investing countries in Portugal are the U.S., Germany, France, the UK and Spain.

Portugal is also listed on the Kearney FDI Confidence Index 2022, ranking among the top 25 countries worldwide, and was considered the 2nd most open country for FDI in the OECD's FDI Regulatory Restrictiveness Index 2020, in a total of 68 countries.

Portugal’s pro-business policies have supported this upward trend in foreign investment. Reflecting the country’s actual degree of integration and openness into the world economy, Portugal entered into several Bilateral Agreements and Conventions with different countries and supranational entities.