Lower Diversification and a Singular Investor Spotlight
Foreign investment is growing again, more than before the pandemic, yet its focus has narrowed. This is the central message from José Vicente Morata, president of the Valencia Chamber of Commerce, who comments on the current landscape of investment in the Valencian Community. He notes that the numbers look good at first glance, but they do not resemble the patterns the region had grown accustomed to. The context is clear: more capital flowing outward, but concentrated in a few strategic bets rather than widespread, broad-based development.
Recent figures from the Ministry of Commerce reinforce this view. In 2023, Valencian companies invested abroad to the tune of 280 million euros. The grocery retail and air transport sectors emerged as the main engines of this outward push. This represented a rise of nearly 39 percent compared with the pre-pandemic year of 2019, when the total stood at 201 million euros. Spain as a whole, by contrast, saw a 16 percent drop in outward investment. The Valencian uptick also marks a 285 percent increase from 2022, a year characterized by geopolitical tensions such as the onset of the war in Ukraine, which had curtailed international ventures for many firms.
Looking at the first quarter of 2024, the latest data available, there is a striking shift when compared with the start of the previous year. Investment surged from 37 million to 259 million euros. A notable element of this positive trend is the 180 million euros directed to Portugal. This aligns with commitments reportedly echoed by the Portuguese government’s Agência para o Investimento e Comércio Externo, which indicates that the same amount could be invested in Portugal within the year by Valencia-based projects, including large players in the regional economy.
Smaller Markets, Fewer Diverse Corridors
Morata explains that this growth comes with a worrying reduction in market diversification. Key international hubs such as the United States and parts of Latin America have seen declines. In the United States, for instance, the 2019 figure of 15 million euros has fallen to just two million in 2023. France continues to be a meaningful anchor in the Valencian outward strategy, but the broader diversification prospects are not expanding as much as hoped. The image that emerges is one of a handful of strong investments—most notably by Mercadona—while the broader corporate landscape in the region does not show a robust pattern of new international bets. As a result, Morata advocates stronger policies to support internationalization, with a clear role for public and private sectors to stimulate a wider reach beyond a few prominent players.
In the overall Spanish context, Valencian investment still represents a small share of the total, accounting for roughly 1 percent of the nation’s 20.7 billion euros in outward investment. This reinforces the sense that while some firms are charting ambitious routes abroad, the regional economic structure requires more diverse and more frequent international engagement to create a broader safety net for the economy.
Morata emphasizes that international investment is a kind of lifeline for Valencia’s economy. It acts as a form of insurance against domestic fluctuations and helps stabilize growth over time. Yet, high interest rates in recent months and a resilient domestic demand have kept attention focused on the home market, making the impulse to invest abroad less urgent for many companies. The combination of these factors has dampened the readiness of some investors to commit to cross-border ventures, even as others press forward with sizeable projects in select markets. The challenge is to reconcile strong outflows with a more expansive, internationally diversified investment strategy for the region.
This analysis, drawn from the chamber leadership’s assessment, points to a cautious but persistent optimism. The figures suggest potential, but there is a clear call for policy measures that encourage broader international participation, reduce barriers to overseas investment, and provide targeted support for Valencian firms pursuing opportunities beyond their traditional spheres. The regional leadership portrays outward investment as a strategic shield for the economy, one that could strengthen resilience when domestic conditions shift or when global tides turn unfavorably. In this view, a proactive stance toward internationalization remains essential for long-term prosperity [Source: Valencia Chamber of Commerce].