Portuguese Economic Growth Fuels Prospects for Business Investment

SMEs play a vital role in the national economy, driving employment, fostering innovation, and promoting economic competitiveness. In a context of economic growth, albeit with some uncertainty, it is fundamental that small and medium-sized enterprises continue to invest prudently and sustainably to support this growth.

The Portuguese economy is demonstrating notable resilience, boosting investment hopes for companies throughout the country.

With a growth of 2.2% in the last quarter of 2023, Portugal's Gross Domestic Product (GDP) registered the highest quarter-on-quarter rise in the Eurozone, according to data from the National Statistics Institute. This positive evolution, added to the growth of 2.3% throughout the year 2023, exceeded the expectations forecast by the government and offers fertile ground for Portuguese companies to explore.

This economic growth is challenging but also inspires the confidence of entrepreneurs across the country. The increase in the economic climate indicator, which measures business confidence, for the third consecutive month, suggests a stable recovery of economic activity. This should encourage a gradual recovery of business investment in the coming quarters.

Furthermore, the resurgence of the consumer confidence indicator after four months of decline indicates an improvement in the general sentiment of the population, which naturally drives consumption. This positive change in the economic environment offers a safer and more conducive ground for companies to invest and expand their operations in 2024.

In a country where SMEs play a crucial role as the engine of the economy, it is vital to continue supporting private investment. For this, it is fundamental that adequate financial incentives be allocated to attract economic activity to different regions of the country. Initiatives linked to capitalisation, innovation, and internationalisation are essential to create an environment conducive to business growth.

In addition to financial incentives, tax benefits play a fundamental role in supporting private investment. The Tax Regime for Investment Support (RFAI) and the Contractual Tax Benefits for Productive Investment (BFCIP) can play a relevant role by providing fiscal stimuli that encourage private investment. 

To ensure the long-term competitiveness of companies, it is also essential that they invest in innovation and research and development (R&D). In this context, R&D incentives and the Tax Incentive System for Business Research and Development (SIFIDE) have an essential role in promoting investment in these crucial areas.

What would you do given the opportunity to invest in an optimised way, while simultaneously reducing operational costs?

At Yunit, we have vast experience in framing financial support and tax benefits for projects in the most diverse activity sectors. We understand the pains and challenges that SMEs face, and that is why we focus our solutions on supporting the capitalisation of companies through these instruments.

We count on over 900 executed investment projects, which translate into more than €800M of supported investment.

Invest in the growth and competitiveness of your company. Schedule a free, no-obligation conversation with our team and discover which support and benefits best suit your project.

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