The second edition of Portugal Capital Markets Day 2025, organised by Euronext Lisbon and AEM – Associação de Empresas Emitentes, brought together business leaders, international investors and policymakers this Wednesday, 12 November, at Culturgest, to discuss Portugal’s position in the global economy and the role of the capital market in financing Portuguese companies.
One of the central moments of the event was the presentation of the study “Portugal as a Prime Investment Destination: Infrastructure & Innovation at the Core”, developed by the Centre for Applied Studies (CEA) of CATÓLICA-LISBON and presented and co-signed by Filipe Santos, Dean of CATÓLICA-LISBON, together with Professors Rute Xavier and Pedro Fernandes. The report aims to bolster Portugal’s position on the international radar of investors, highlighting the structural transformation of the Portuguese economy, the contribution of the capital market, and the relevance of innovation and infrastructure as decisive competitiveness drivers.
In his presentation, Filipe Santos stated that Portugal currently has the conditions to establish itself as “one of the champions of the European economy: competitive, industrialised, sustainable and digital”. According to the Dean, “the country has a set of strategic advantages capable of sustaining consistent economic growth, provided it is grounded in a strengthened talent base, increased productivity and productive investment”.
The session was also attended by the Prime Minister, Luís Montenegro, who, in his opening address, conveyed a message of confidence to the international investor community. He noted that Portugal has grown persistently above the average of the Eurozone and the European Union, benefiting from a context of “virtually full employment” and an “absolutely remarkable” reduction in public debt, which is expected to fall from 134% of GDP in 2020 to below 88% in 2026. He also underlined the strong progress of the energy transition, recalling that “70% of electricity consumed in Portugal already comes from renewable sources, which, combined with one of the lowest industrial energy costs in the European Union, makes the country particularly attractive for new investments”. For the Prime Minister, political stability and the new tax regime for young people up to 35 years old further strengthen the favourable environment for investment and consolidate the country’s position “among the winners of the new European cycle”.
Findings of the CATÓLICA-LISBON study
According to the analysis presented by Professor Filipe Santos, between 2022 and 2025 Portugal’s Gross Domestic Product grew 12.2%, almost doubling the Eurozone average — 6.4% — in the same period. This performance is driven, according to the study, by three structural engines: an enhanced human capital base, modernised infrastructure and the consolidation of a robust and competitive innovation ecosystem. The Dean also highlighted the rapid reduction of public and private debt, the stabilisation of the external balance and the maintenance of a counter-cyclical fiscal policy, placing Portugal among a very small group of European countries with a budget surplus.
The report also underscores the positive impact of demographic dynamics. Since 2019, positive net migration has added around one hundred thousand residents per year, many of whom swiftly integrate into the labour market. This trend allowed the active population to expand by six per cent in five years, employment to reach 5.3 million people and unemployment to fall to 5.8%, the lowest level in decades. These indicators reinforce disposable income, the sustainability of public finances and overall economic growth.
On structural competitiveness, the study notes that Portugal benefits from a favourable energy mix based on hydro, wind and solar renewables, with electricity costs for industrial clients below the European average. The modernisation of telecommunications infrastructure, with full 5G coverage and fibre-optic penetration above 90%, combined with the country’s geostrategic position, strengthens Sines as an internationally relevant technological and industrial hub, supported by submarine cables that secure privileged connections to Europe, the Americas and Africa.
The report also highlights developments in the natural resources sector, emphasising the modernisation of agricultural and forestry productivity driven by major structural projects such as Alqueva, as well as the performance of emblematic sectors including pulp and paper, cork, olive oil and wine. It further notes that Portugal holds the largest lithium reserves in Europe — a critical resource for the energy transition — and confirms the resilience of the financial system, whose capital ratios above twenty per cent ensure liquidity and stability in the domestic market.
Innovation is presented as the new distinctive vector of the Portuguese economy. Alongside the established innovation hubs of the Lisbon and Porto metropolitan areas, cities such as Coimbra, Évora, Braga and Aveiro are emerging as technological development centres with strong ties to the scientific and business ecosystem. Examples such as Critical Software and Feedzai illustrate the country’s capacity to generate advanced technology in artificial intelligence, cybersecurity and specialised software. According to the study, the impact of investment in knowledge is measurable: each million euros invested in research and development creates, on average, eight skilled jobs, both direct and indirect.
The report concludes by identifying four strategic areas with high growth potential: health and the pharmaceutical and biotech industries, which already exceed five billion euros in annual exports; European multinational competence centres, which have been a driving force of economic expansion; the digital economy and cloud and data-centre infrastructure, for which Portugal offers unique advantages on the global stage; and, finally, the defence and drone sectors, where the strong national metalworking industry and clusters of excellence in aeronautics and unmanned systems can play a decisive role. The Sines Hub emerges as a symbol of this forward-looking vision, incorporating projects in data centres, photovoltaic batteries and green hydrogen that may total more than fifteen billion euros in investment over the coming years.
The full study is available to read here.