In a resounding show of confidence in Portugal’s economy, Swedish companies are ramping up their investments in the country, with the majority forecasting substantial growth in 2025. This optimism, captured in a recent survey by Business Sweden, the Swedish Embassy, and the Swedish Portuguese Chamber of Commerce, highlights Portugal’s growing reputation as an attractive destination for foreign direct investment.

According to the survey, conducted in early 2025, over half of Swedish companies operating in Portugal plan to increase their investments next year with a notable rise from the previous year’s survey. Particularly striking is the enthusiasm among newer entrants to the Portuguese market, with two-thirds of these companies planning to ramp up their investments this year.

Since 2019, Swedish corporate investment in Portugal has surged, nearly doubling to approximately €3.1 billion by the end of the first quarter of this year. This remarkable growth reflects a deepening economic partnership between the two countries.

Swedish companies are not just investing more, they’re also more confident about their business prospects. An impressive 73% of surveyed companies expect their business activity in Portugal to increase in the coming year, compared to just 57% the year before. Additionally, more than three-quarters of these companies reported profitability in 2024, solidifying Portugal’s status as a profitable and resilient market for Swedish firms.

This expanding Swedish footprint is visible across a wide range of sectors critical to Portugal’s economy, including pharmaceuticals, health, automotive, energy, digitalization, and even defense. Recent milestones have been achieved such as the installation of a wave energy device at the coast of Viana do Castelo and significant investments in green hydrogen and steel production in Sines likewise underscore the innovative and sustainable dimension of this investment wave.

Defense investments are also on the radar, with Swedish companies exploring opportunities to contribute to Portugal’s national security and modernization efforts. The Swedish presence at the AED Days aviation event in Oeiras this week highlighted the potential for new collaborations in this key sector.

Behind this surge of confidence lies Portugal’s compelling investment landscape. The country offers clean energy opportunities, robust infrastructure, a dynamic start-up ecosystem, and a highly skilled workforce with strong English proficiency. This unique combination of factors positions Portugal as a gateway for Swedish companies seeking growth, innovation, and impact.

As Swedish investment in Portugal accelerates, the economic ties between the two countries are poised to reach new heights, bringing with them job creation, technological advancement, and increased collaboration across multiple sectors. This thriving partnership is not just a testament to Portugal’s economic potential but a clear sign that Swedish companies see Portugal as a key pillar in their European growth strategies.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes