Portugal’s investment and trade with Portuguese-speaking countries are small percentage of total

17 October 2007

Lisbon, Portugal, 17 Oct – Portuguese investment in and trade with Portuguese-speaking African countries (PALOP) and East Timor rose in 2006, particularly in relation to Angola and Cape Verde, but continue to be a small part of the Portuguese total, figures from the Bank of Portugal showed.

According to a report on the development of the PALOP economies and East Timor published Tuesday in Lisbon by the Bank of Portugal, direct investment from Portugal in this group of countries rose 34 percent last year to 418.26 million euros, “continuing the trend of previous years.”

Angola was the destination of almost 80 percent of the total and Cape Verde was the destination of 14.3 percent of investment.

Mozambique, “continuing the downward trajectory begun in 2002,” represented just 6.6 percent of the total invested, while the other countries “show figures that are significantly lower, representing just 0.2 percent of the total,” said the bank of Portugal.

In sector terms, the largest slice of Portuguese investment in the Portuguese-speaking world was in real estate activities and rental and provision of service to companies (41 percent), financial activities (29 percent) and construction (21 percent).

In the opposite direction, investment in Portugal by the seven countries totaled 14.5 million euros, with almost the entire amount (95.8 percent) from Angola.

Trade also rose last year, despite continuing to have “a small weighting in the total of Portugal’s foreign trade.”

Portuguese exports to the seven countries rose 43.8 percent last year, to 1.526 billion euros, whilst imports from them rose 38.2 percent to 91.6 million.

The rise was driven by increased trade with Angola (an extra 406 million euros in exports and 27.6 million in imports).

The Portuguese trade surplus with the seven countries last year rose 44.2 percent to 1.435 billion euros. (macauhub)