Foreign Direct Investment

According to the most recent data of Bank of Greece, the (net) inflows of Foreign Direct Investment in Greece for 2019 amounted to €4,137 million (the highest amount since 2006) compared to 3,364 million in 2018, presenting an increase of 23.0%. 2019 is the fourth consecutive year of increase of net foreign direct investment in our country, following an annual increase of 9.0% from 2017 to 2018, 23.5% from 2016 to 2017 and 118.5% from 2015 to 2016.

The net FDI inflows in Greece during the period 2009-2019 (in millions of Euro).

FDI

2018, 2019: Provisional data

Source: Bank of Greece

 

Countries of origin of investment funds

The investment activity in the country during the previous decade originates mainly from companies of major markets, such as the EU, with Germany and France constituting the main countries of origin of investment funds. Cyprus, as well as Switzerland, also constitute important sources of investment funds, with the first ten positions filled by China (with Hong Kong) that has significantly strengthened its position during the previous years, the Netherlands, Canada, Luxemburg, USA and Spain.

Net FDI inflows per country of origin of funds during the period 2009-2019 (in millions of Euro)

FDI march20 2

2018, 2019: Provisional data

Source: Bank of Greece

Main characteristics:

-           The investment activity in the country originates mainly from companies of major markets, such as the EU.

-           Germany and France constitute the main countries of origin of investment funds during the period 2009-2019, followed by Cyprus and Switzerland.

-           The first ten positions in the list of countries investing in the country during the previous decade also include several non-European countries, such as China (with Hong Kong), Canada and the USA, with said countries significantly increasing their investment presence during the last few years.

 

Sectoral distribution of foreign investment

During the last few years, the net inflows of FDI per sector of economic activity in Greece, focus mainly in the tertiary sector followed with a significant margin by the secondary sector. Most developed countries present a similar composition of FDI.

Net FDI inflows per sector of economic activity during the period 2009-2019

FDI 3

 

2018, 2019: Provisional data

Source: Bank of Greece

Main characteristics:

-           Concertation of FDI in services. This trend was dictated primarily due to the growth of the financial system of the country, the growth of telecommunications as well as the trade stimulus, particularly before the onset of the crisis, whereas a concentration of investment in real estate management and logistics is observed during the last few years.

-           The share of the secondary sector is relatively low, compared to the capabilities of the country, a fact that suggests significant investment opportunities. The same applies to the primary sector, with very low FDI rates, in a country with comparative advantages for this sector (climate, etc.).

 

In particular:

  1. A. Manufacturing

The manufacturing sectors with significant investment interest during the period 2009-2019 include chemical and oil products (by a wide margin), food-beverages-tobacco, pharmaceuticals, machinery and computers.

Composition of net FDI inflows in manufacturing during the period 2009-2019

FDI 4

2018, 2019: Provisional data

Source: Bank of Greece

Main characteristics:

-           The manufacturing sectors attracting the most investment interest during the period 2009-2019 are chemicals and oil products (by a wide margin). The sectors of pharmaceuticals and plastics are mentioned in separate categories, that also attracted a high investment interest during the previous decade. After chemical and oil products, the sectors that attract the most significant FDI inflows in manufacturing are food-beverages-tobacco, machinery and computers and relevant equipment.

-           The concentration of business activity in the aforementioned sectors favors both the establishment of new businesses (Greenfield investments) in Greece and the investment collaboration of foreign and Greek enterprises for the production of final products that will cover the needs of the domestic and international market.

  1. B. Services

The services sectors attracting significant investment interest during the period 2009-2019 include financial and insurance activities, real estate management (years 2018 and 2019 in particular) and logistics. It is worth noting that the category “real estate management” (according to the Bank of Greece classification) of the chart below does not include the private sales of real estate that amounted to almost €2,704 million during the period 2009-2019.

Composition of net FDI inflows in the services sector during the period 2009-2019

FDI 5

 

2018, 2019: Provisional data

Source: Bank of Greece

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