Foreign Direct Investment

2017

According to the latest Bank of Greece data, net Foreign Direct Investment inflows during 2017 reached € 3,590.5 million, vs. € 2,774.2 million during 2016, an increase of 29.4%.

Up to 2016

Greece achieved an impressive performance in attracting foreign investment in 2016. More specifically, net FDI inflows reached € 2.8 billion (+147% vs. 2015), the largest amount recorded since 2008, before the start of Greece's recent economic 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 in the past decade, followed by Cyprus, as well as non-EU countries such as USA, Switzerland and Canada. The 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 in major markets such as the EU.
  • France and Germany are the top source countries of investment capital during this period (2006-2016), by a large margin, mainly due to the investment of Deutsche Telecom in OTE and the acquisition of Greek banks by French ones, during prior to 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 by the secondary sector by a significant margin. The majority of developed countries show 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 
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 liberalization of telecommunications, and the stimulation of trade, mainly from before the beginning of the crisis. During the last few years there is has been a focus on investment in real estate and other business activities.
  • The proportion of FDI in the secondary sector is relatively low compared to opportunities in the country, a trend that suggests considerable potential for investment. That is also the case for the primary sector, with almost zero FDI, in a country with a lot of comparative advantages in this sector (climate etc.).

Specifically:

A. Manufacturing

Manufacturing sectors with significant investor interest during the period of 2006-2016 included chemical products - such as pharmaceuticals - and food and beverages.

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

foreign direct4

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

Key features

  • The sector of manufacturing that attracted the most investment activity during the period 2006-2016 was chemicals (by far). 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 food and beverage products, where the country has competitive advantages thanks to its climate and Mediterranean produce.
  • The concentration of investment activity in these areas favors the establishment of new businesses (Greenfield Investments) in Greece, as well as joint ventures of foreign companies with Greek companies to produce products that meet the demands of domestic and international markets.

B. Services

Service sectors with significant investor interest over the period 2006-2016 included financial services ( in the lead, 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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