Foreign Direct Investment

January – November 2017

According to the latest Bank of Greece data, net Foreign Direct Investment Inflows the first 11 months of 2017 reached 3,304.4 million Euros, vs. 2,462.6 million Euros the same period of 2016, an increase of 34.2%.

This achievement improves significantly the 2016 performance and establishes a clear upwards trend which has already brought Foreign Direct Investments back to the levels of the best years before the crisis.

Up to 2016

Greece achieved an impressive performance in attracting FDI in 2016, despite the economic crisis the country is facing since 2010. More specifically, net FDI inflows reached 2.8 billion Euros (+147% vs. 2015), the largest amount recorded since 2008, before the beginning of the crisis.

FDI Inflows in Greece during the period 2006-2016 (in million Euros)

foreign direct1

2015: Revised data 2016: Provisional Data
Source: Bank of Greece

Investment capital by country of origin 

Foreign investment activity in the country during the last decade originates mainly from companies of significant markets, such as the EU, with France and Germany being the top source countries of investment capital the past decade, followed by Cyprus, as well as non-EU countries such as USA, Switzerland and Canada.   Netherlands, Luxembourg, Spain and China (incl. Hong-Kong) complete the top-ten countries.

Total FDI inflows by country of origin of capital during the period 2006-2016 (in million Euros)

foreign direct2

2015: Revised Data, 2016: Provisional Data 
Total value: 21.169,4 million Euros
Source: Bank of Greece

Key features

  • Investment activity in Greece originates primarily from companies from significant markets such as the EU.
  • France and Germany are top source countries of investment capital during this period (2006-2016), by far from countries that follow, mainly due to the investment of Deutsche Telecom in OTE and the acquisition of Greek banks from French ones during the period before the beginning of the crisis.
  • USA and Canada also belong to the top ten source countries of foreign investment in Greece during the last decade, increasing significantly their investment presence during the last few years.

Sectoral breakdown of foreign investment

FDI inflows by sector of economic activity in Greece in recent years focused mainly in the tertiary sector, followed, with a significant margin, by the secondary sector. The majority of developed countries shows a similar structure of FDI.

Total FDI inflows by sector of economic activity for the period 2006-2016

foreign direct3

2015: Revised Data, 2016: Provisional Data 
Total value: 21.169,4 million Euros
Source: Bank of Greece

Key features

  • Focus of FDI in services. This trend was dictated primarily by the development of the country's financial system, the liberalisation of telecommunications, and the stimulation of trade, mainly before the beginning of the crisis, while during the last years there is a focus of investment in real estate and other business activities.
  • The proportion of the secondary sector is relatively low compared to the potential of the country, a trend that suggests considerable potential for investment. That is also the case for the primary sector, with almost zero rates, in a country with a lot of comparative advantages in this sector (climate etc).

Specifically:

A. Manufacturing

Manufacturing sectors with significant investor interest over the period of 2006-2016 include chemicals (by far) and food and beverages.

Structure of total FDI inflows in manufacturing in the period 2006-2016

foreign direct4

Total Value: 855.5 mil. € 
2015: Revised Data, 2016: Provisional Data 
Source: Bank of Greece

Key features

  • The sector of manufacturing that attracted mostly the investment activity during the period 2006-2016 was chemicals (by far). Taking into account that the chemical sector for this analysis does not include plastic products and refinery, this investment interest can be attributed to the development of the pharmaceutical sector in Greece during the last decade.
  • Following chemicals, the sector attracting the most important FDI inflows in manufacturing is the food and beverage products, where the country has competitive advantages thanks to the climate and the Mediterranean diet.
  • The concentration of investment activity in these areas favours the establishment of new businesses (Greenfield Investments) in Greece, as well as the investment cooperation of foreign companies with Greek companies in order to produce end products that meet the needs of domestic and international markets.

B. Services

Service sectors with significant investor interest over the period 2006-2016 include financial services (by far), telecommunications and, to a lesser extent, trade and tourism.

Structure of total FDI inflows in services during the period 2006-2016

foreign direct5

2015: Revised Data
Total value: 18.469 million Euros
Source: Bank of Greece

 

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