According to a recent report, the growth of Brazilian investments in Portugal has been significant, but there is much more potential to be explored.
Between 2015 and 2021, Brazilian investments in Portugal reached approximately 176 million euros, accounting for about 4 per cent of Portugal's total foreign investments. In recent years, however, this number has grown by an average of 12 per cent annually. This upward trend has led to Brazil becoming the second-largest investor outside of Europe, just behind the United States. Data from early 2024 indicates that Brazilian investments have increased by 10 per cent from the previous year, reaching 5.3 billion euros. While this shows clear growth, the full potential of Brazilian investment in Portugal remains untapped.
One of the key areas in which Brazil and Portugal are expected to collaborate more is the startup ecosystem. Brazil is home to a strong and dynamic startup culture, and Portugal offers a fertile environment for innovation. Although smaller in size, the Portuguese market has shown great promise in this regard. Brazilian investors are drawn to Portugal's innovative spirit, as it presents a perfect opportunity for companies to test new products, services, and business models before expanding further into Europe, a market of 500 million consumers.
Real estate and the hotel sector are also seeing significant investments from Brazil. The tourism industry, in particular, has seen tremendous growth in Portugal, which has earned recognition and accolades for its tourism offerings. Portuguese cities like Lisbon and Porto are well-known for their high-quality tourism infrastructure, attracting millions of visitors annually. However, the potential in the Brazilian market, which has vast resources but remains underutilised in the tourism sector, presents an exciting opportunity for future collaborations between countries.
Large-scale investments from Brazil, such as Embraer's involvement in the aviation sector, further demonstrate the willingness of Brazilian companies to deepen ties with Portugal. Embraer holds a significant stake in OGMA, a Portuguese aviation company, and is a prime example of how businesses from both nations create mutually beneficial partnerships. This kind of investment helps Brazilian companies strengthen their position in Europe and provides valuable expertise and growth for the Portuguese market.
