Portugal continues to attract strong interest from American companies despite growing geopolitical uncertainty, trade tensions and economic challenges, according to the latest Barometer of American Companies in Portugal.

The annual report, produced by the American Chamber of Commerce in Portugal (AmCham Portugal) in partnership with PwC, found that US businesses remain optimistic about operating in Portugal and see further opportunities for investment.

The findings were presented during the “Portugal in the Sights of International Investment” conference in Lisbon, where business leaders highlighted both the country’s strengths and the areas where further reforms are needed.

US investment continues to grow

The United States is now Portugal’s third-largest foreign investor, behind Spain and France, with a direct investment stock valued at approximately 16.8 billion euros.

American companies also play an increasingly important role in the Portuguese economy. According to the report, they account for around five percent of Portugal’s GDP, with their economic contribution continuing to grow.

Portugal has also strengthened its trade relationship with the United States. The US is now one of Portugal’s main export destinations outside the European Union and has become an increasingly important market for Portuguese goods and services.

Tourism also continues to strengthen the relationship between the two countries. Around 2.4 million Americans visited Portugal last year, including tourists, business travellers and people relocating or purchasing second homes.

The report also notes that American companies generally offer higher salaries than many other employers in Portugal, with average monthly labour costs reaching 3,730 euros per employee in 2024.

Technology leads investment

The study identified 841 American companies with significant operations in Portugal, with many having maintained a long-term presence in the country. More than one-third have been operating in Portugal for over 20 years, while almost half have been established for at least five years.

Most companies are concentrated in the Lisbon metropolitan area, followed by Porto, although businesses are present across the country.

Technology, information technology and communications represent the largest sector of US investment, alongside wholesale and retail businesses. Professional and scientific services, manufacturing, administrative services and real estate also account for significant shares of American investment.

The report suggests that the profile of US businesses in Portugal is gradually shifting towards medium-sized companies, reflecting the expansion of existing operations rather than a growing number of small businesses entering the market.

Remaining competitive

While confidence remains high, business leaders said Portugal must continue improving its investment environment to remain competitive.

Speaking during the presentation, PwC Portugal partner José Bizarro Duarte said companies are operating in an increasingly fragmented global economy marked by geopolitical tensions, rapid technological change and concerns over energy security.

He also highlighted the growing importance of artificial intelligence, workforce development and resilient supply chains as key issues influencing investment decisions.

Positive long-term prospects

Despite global uncertainty, the report suggests American companies remain confident about Portugal’s long-term prospects. Many have maintained a presence in the country for decades, while others continue to expand their operations, reflecting sustained confidence in the Portuguese market.

The study also highlights the growing contribution of US businesses to the Portuguese economy, not only through investment but also by creating jobs, paying above-average wages and strengthening trade links between the two countries.

While the report says Portugal can continue improving its competitiveness and investment environment, its overall conclusion is positive. Against a backdrop of geopolitical tensions, technological change and increased international competition, Portugal continues to be viewed as an attractive destination for American businesses and well positioned to attract further investment in the years ahead.