French investment in Portugal reaches €18.8 billion

French direct investment in Portugal has reached €18.8 billion, with more than 1,700 French subsidiaries employing about 130,000 people, according to a study to be presented on Friday at the 9th Franco-Portuguese Economic Conference in Lisbon. The figures matter for international investors because they highlight Portugal’s growing weight in French corporate expansion, beyond its traditional role as a lower-cost operating base.

The study, “For a More Competitive Europe – the contribution of the Franco-Portuguese partnership”, says France is Portugal’s second-largest foreign investor, its third-largest export market and its third-largest supplier. France accounted for about 12% of Portuguese exports, with sales to the French market reaching around €16.3 billion in 2024, led by industrial goods such as transport equipment, machinery and metals.

French companies are increasingly using Portugal for engineering, technology, innovation and strategic decision-making. Natixis, Euronext, Airbus and BNP Paribas are examples of that shift, alongside industrial groups such as Stellantis, Horse and automotive components makers. In infrastructure and consumer sectors, French groups including Vinci, Decathlon, Auchan, Intermarché and Leroy Merlin also have a significant presence.

The study identifies institutional stability, skilled workers and Portugal’s logistics and energy platform as the main factors attracting French investment. It also points to structural constraints that could limit further growth, including slow courts, regulatory uncertainty, lengthy licensing, rail and mobility weaknesses, and rising pressure on talent retention.

Originally published at Eco.pt