News in Brief – May 2023
- Greek Elections – The ruling New Democracy party won 40.79% of the vote and 146 seats in parliament in national elections held May 21, just shy of a majority in Greece’s 300-seat parliament. A second election is expected to be held June 25.
- Greek Economy − The European Commission doubled its growth forecast for the Greek economy this year to 2.4% versus 1.2% previously. The revision suggests that Greece will be among Europe’s fastest growing economies and well above the 1% growth rate seen for the European Union.
- Strategic investments – Greece has so far approved some €12.4 billion worth of strategic investments, which have led to the creation of 12,097 jobs, Vicky Loizou, President of Enterprise Greece, said in an interview with To Vima newspaper. Most of the investments relate to energy, specifically renewable sources, tourism, data centers, research and development and pharmaceuticals.
- Investment Outlook − Greece expects to see continued strong growth in both domestic and foreign investment over the next several years with gross fixed capital formation expected to expand by double digit levels this year. According to the government’s Medium Term Fiscal Plan, total investment this year is seen rising 13.2%, followed by 9.7% in 2024, 10.7% in 2025 and 7.2% in 2026.
- Hewlett Packard − U.S. tech giant Hewlett Packard Enterprises (HPE) plans to create a Global Center of Excellence in Artificial Intelligence in Greece, reflecting the country’s growing role as an innovation hub in the broader region. The project is part of the company’s HPE Ezmeral Software and aims to help business clients worldwide incorporate AI into their operations.
- Tourism Goals − Greece aims to raise annual tourism revenue to €30 billion within the next four years in tandem with the country’s efforts to become a year-round tourism destination. The goal represents a significant increase over the €18 billion collected by the sector in 2019, a record year for both revenues and arrivals. This year, tourism revenues are forecast to rise 15% over last year’s levels, which were only slightly below 2019, according to Greek National Tourism Organization Secretary General Dimitris Fragakis.
- Defense Deal − Israel Aerospace Industries has agreed to purchase Greece’s Intracom Defence, a producer of launchers and missile subsystems for €60 million. This is the latest in a series of Israeli investments in Greece’s defense industry in recent years and which have included investments in the Hellenic Vehicle Industry and a pilot training center in Kalamata, in southern Greece.
- Alexandroupolis Port − Greece has secured €24 million of European Union funding to upgrade the port of Alexandroupolis in northern Greece. The funds will be used for dredging works and the construction of road infrastructure in the area. The port has recently become a major supply and logistics hub for NATO forces in Southeast Europe, and is also emerging as an energy hub for the region.