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Newsletter February 2010


FDI in Greece—Sectors and Sources
Greece attracts investment from a variety of countries in a diverse number of sectors. While EU countries have dominated investment interest, countries from further afield are now showing more interest in Greece’s many opportunities.

During the last six years, EU countries have been the primary source of FDI in Greece. The United States is also in the top 10 list (at position 8) as is Switzerland (position 9). The leading countries/regions are Germany (1), UK (2), France (3), Belgium and Luxembourg (4), Netherlands (5), Italy (6) Cyprus (7), and others (10).

As a global economy becomes more prevalent, it is expected that countries from other regions—Eastern Europe, the Middle East, Asia, and South America—will become increasingly focused on Greece’s many investment opportunities.

The amount of interest displayed from these new regions during the last two years is significant, as synergies become evident, the Internet reduces barriers, and new partnerships are formed.

Greece displays all the characteristics of a developed economy if investment is analysed by sector. Developing nations, according to UNCTAD data, typically attract investment in the service sector compared with the manufacturing sector at a ratio of 3:1. FDI in Greece during the period 2003-2008 has mirrored this ratio with the total value of investment (gross inflows) reaching 28.41 billion Euro, 20.05 billion of which has been directed to the services sector and 6.92 billion directed toward the manufacturing sector.

In services, the greatest percentages are in telecoms (41%) and financial services (33%), followed by tourism and real estate (10%), trade (7%), education and health (2%) and other (7%). Although relatively small sectors overall, education and health are showing a dynamism that is highly promising for the near future.

Manufacturing attracted investment in chemicals (26%), machinery (18%), food, beverages & tobacco (17%), metals (15%), miscellaneous (13%), petroleum products (9%), and motor vehicles (2%). Manufacturing displayed a more uniform balance by sector, with food and beverage strongly represented, an area that is expected to grow as the Mediterranean diet becomes adopted by more people worldwide.

Gross FDI inflows in Greece per source country during the period 2003-2008 (in million Euros)

Total Value: 28,406 million Euros

Source: Bank of Greece 2009

Structure of gross FDI inflows in manufacturing during the period 2003-2008

Total Value: 6,924 million Euros

Source: Bank of Greece 2009

Structure of gross FDI inflows in services during the period 2003-2008

Total value: 20,059 million Euros

Source: Bank of Greece 2009

FDI inflows in Greece during the period 2003-2008 & Jan- Oct 2009 (in Million Euros)