Significant impact of the weak economic climate on trade.
Since Portugal joined the European Communities in 1986, France has traditionally been its third-leading provider and customer, after Spain and Germany.
The crisis had an overall effect of strengthening investment ties between France and Portugal.
While they posted a drop of 26% for all of 2009, all destinations combined, Portugal’s gross investment flows in France grew 20%. France’s share in Portugal’s gross investment flows moved from 0.7% in 2008 in 1.2% in 2009. However, as disinvestment remains significant, Portugal is still a net debtor with France for the third year in a row, albeit at a lower proportion. The crisis tends to thus strengthen Portugal’s ties with France, thereby promoting Portuguese investments in services and monetary transactions, as well as in other sectors of French economic activities.
While disinvestment may have been observed in Portugal at the beginning of the crisis, France was the leading foreign investor in Portugal all throughout 2009, in terms of both gross flows and net flows.
Promising cooperation prospects
For the period 2010-2015, Portugal presents many business opportunities for French companies in the energy and transport sectors, for both major companies and SMEs. A certain number of short- and medium-term contracts concern French companies with the two key projects of the priority investment infrastructure plan (PIIP). It is of note that a portion of the funding for these projects receives community funding. However, these investment projects are for the most part postponed because of the country’s financial situtation.
Updated on 12.04.11