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France-Portugal Economic Trends

France-Portugal Economic Trends -
France-Portugal Economic Trends - Portugal Business News

France is the second main source of Foreign Direct Investment in Portugal. Over the last seven years, French investment reached Euros 658 million, with 60% of that amount invested within the last four years.

Moreover, for Made-in-Portugal products, France is the second main export market, with a share of 13.1% that accounts for Euros 8.320 million in 2021. The number of Portuguese companies exporting to France is growing and reached 5,500 in 2021.

In 2020, statistics from INE showed that French subsidiaries in Portugal had a higher Gross Value Added (GVA) as a percentage of capital invested, the figure revealing the contribution of products Made-in-Portugal to the profitability of these companies.

French companies have a diversified investment portfolio in Portugal, with the automotive sector attracting a major share. This is showcased by the presence of companies such as Renault and by the PSA Group that produces Peugeot and Citroën.

The Stellantis Mangualde Plant (CPMG) is an automotive assembly plant located near Viseu in Central Portugal. Despite the pandemic, 2021 was the company’s second-best year. The plant produces 1.5 million vehicles with a production capacity of 357 vehicles per day.

Other major corporations include Engie, a French multinational utility company which operates in the energy sector. Engie Portugal produces electrical and thermal energy and operates under five different companies. These include TRUSTENERGY, the second major operator in the field of electrical energy in Portugal that holds 10% of the country’s wind production as well as HEMERA that supplies solar photovoltaic systems.

The France-Portugal trade balance is advantageous for Portugal’s economy, both in the sectors of goods and services produced. Companies such as Airbus, Air Liquide, Faurecia, Stellantis, BNP Paribas, Altice and Teleperformance have all led to wealth creation.

French investment is now leading several economic sectors in Portugal with the amount of capital invested in its Portuguese subsidiaries. This includes companies operating in sectors such as construction, real-estate, commerce, transport and warehousing, where they are also the main sources of employment. French companies have created over 30,000 jobs in Portugal, since Portugal has a workforce that is multi-lingual and qualified and is endowed with quality infrastructure.

France is also the fourth source market for the Tourism Industry. Linkages with France are so entrenched that 20% of French people would be happy to live in Portugal, according to a recent study by OpinionWay.

With increasing Foreign Direct Investment flows to Portugal, France is in turn becoming an export market that benefits the Portuguese economy. Portuguese companies’ success stories are being recognized and those with the highest Portugal-France export figures will receive a trophy on the 13th of October in Estoril.

Companies that are nominated for the Trophies include Gardengate and José Júlio Jordão for exports. The SME trophies include Caxamar as well as Desafios em Sintonia that produces Personal Protection Equipment certified by Infarmed. The company nominated for the Investment trophy is AR FRANCE INVEST (ARFI) that is a real-estate promoter. ARFI is a Portuguese group that is a subsidiary of Alves Ribeiro, which operates in the Construction Sector.

In terms of global FDI flows towards Portugal, a historical record was set in 2021 with investments reaching Euros 2.7 billion. Meanwhile, the France-Portugal partnership is strengthening with steady economic growth trends.



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