Foreign affiliates in Portugal with positive returns in 2012.Germany became the main country of origin of capital control in terms of GVA
19 September 2014
Foreign affiliates in Portugal represented only 1.4% of the total non-financial companies in 2012,accounting however for a significant part of the turnover and GVA of the companies (21.8% and 19.9% respectively).The majority of foreign affiliates (80.6% of companies and 78.5% of the GVA) were controlled by entities based in Europe,with Spain leading the origin of capital control (26.2% of the foreign affiliates). Foreign affiliates of German companies were, however, those whose weight in GVA most increased between 2008 and 2012(from 15.0% of the total to 17.7%). Germany became, as such, the most economically relevant country of origin of capital control in resident foreign affiliates.Foreign affiliates showed higher survival rates than domestic companies. Over 85% of the foreign affiliates born in 2008 still existed in 2012, while for domestic companies this rate was only 58.4%. The share of high growth companies (HGC) in GVA was lower in foreign affiliates than in domestic companies, having also decreased between 2008 and 2012. The weight of exporting companies in the GVA, on the other hand, increased, being higher in foreign affiliates (especially based in Extra-EU countries) than in domestic companies. The main indicators have decreased since 2008. This decrease was less sharp on the persons employed and GVA of foreign affiliates than of domestic companies.