As financial site Dinheiro Vivo reports, last year Europe as a whole was less attractive to investors with Portugal being no exception to the general rule: foreign direct investment (FDI) in the country fell 19.95 percent compared to 2017.

According to consultant EY’s (Ernst & Young) FDI Attractiveness Survey, released on Tuesday this week, 74 FDI projects were developed in Portugal last year, which created more than 6,100 new jobs.

In 2017, when foreign investment in Portugal peaked, the number of projects was 95, creating 7,657 jobs.

In 2016, the number of FDI-backed projects was a much lower 59.

Dinheiro Vivo states that the survey is in line with figures from the Bank of Portugal, which in February indicated a decrease of €1.2 billion in foreign direct investment in 2018, compared to 2017.

Last year the amount of FDI in the country hit €118.6 billion, whereas in 2017 it reached €119.8 billion.

Nonetheless, EY’s Attractiveness Survey proves that Portugal’s appeal remains strong and short-term investment plans in the country are still among the highest in Europe.

This, the survey suggests, is largely due to the quality of life Portugal offers, stability of its social climate, telecommunications infrastructure and the level of competence as well as the cost of manual labour.

“The current uncertainty in global geopolitics - including phenomena such as Brexit and disruption to international trade - is affecting investor perception and action”, EY consultant Florbela Lima affirmed in a statement, adding: “Portugal can not afford to rest on previous results.

“Supporting high-tech industries and innovation, developing education and skills and reducing taxation must be priorities”.

Over 200 investors from 19 countries were surveyed to compile EY’s report.

Its findings, says Dinheiro Vivo, show that the French are Portugal’s biggest investors, with 19 projects, followed by investors from Spain (10 projects) and Germany (seven projects).

The most attractive areas are the Digital, Manufacturing and Supply of Transportation and Agro-Food sectors.

Of the participants, 52 percent believe that Portugal’s attractiveness for financial investment will evolve positively in the next three years; however, only 25 percent said they have plans to invest in the country over the next year.

Notwithstanding, Portugal is the market with the most investment plans in the pipeline: “Faced with a scenario where investors' perceptions about Europe are worsening, Portugal continues to be perceived as an interesting location for foreign investment, with better results than in the other countries where EY conducted this study”, concludes Florbela Lima.