Private business investment in Portugal reached around 13% of GDP in 2025, slightly above the EU average. Despite this relatively high level of investment, hourly productivity in Portugal continues to hover near 68% of the European average, revealing a significant disparity.
This gap between investment and productivity indicates that the level of investment alone cannot explain the outcomes in terms of productivity. The article suggests that it is necessary to analyze what happens inside companies after the completion of investment projects.
The European Commission also observes that increased investment has not been sufficient to bring Portugal closer to the productivity levels of the most developed EU countries. This points to the need to look at internal factors within companies, such as work organization, worker training, and the adoption of new technologies and management practices.
