Newsletter October,2021,10


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News in Brief – October 2021

Greek Economy – Greece’s economy is forecast to grow 6.1% this year, according to the government’s draft budget, and 4.5% in 2022, supported by 23.4% rise in investment. The budget forecast comes after recent data showed that Greece’s economy grew at a much faster-than-expected 16.2% year-on-year rate in the second quarter. In its latest report, the IMF estimates that the Greek economy will grow 6.5% in 2021 and 4.6% next year.

Defense Pact – Parliament has ratified a mutual defense pact with France as part of Greece’s ongoing efforts to upgrade its defense posture in the Eastern Mediterranean. Greece also announced a €3 billion defense deal to buy three new state-of-the-art frigates from France that will be delivered over the next five years, and which follows a separate multi-billion euro agreement to acquire 24 French Rafale fighter jets.

Defense Pact II – Greece has signed a new five-year mutual defense agreement with the U.S. that will expand the presence and activities of U.S. forces in the country. The agreement foresees granting U.S. forces access to four additional bases around Greece and for the U.S. to invest in upgrading joint military facilities.

Renewable Energy − Germany’s biggest power producer, RWE, announced a joint venture with Public Power Corporation to invest in up to 2GW of photovoltaic projects in Greece. The joint venture, which will be 51% owned by RWE, represents the company’s first entry into the Greek market.

Piraeus Port – Chinese shipping giant Cosco acquired an additional 16% stake in the port of Piraeus for €100 million, raising its total stake in Greece’s largest port to 67%. Under the terms of a 2016 concession agreement, Cosco acquired an initial 51% of Piraeus Port Authority for €280 million and committed to undertake €300 million in investments.

Tech Acquisition – German software company Celonis has acquired, a Greek-owned start-up company focussing on real time Big Data analysis, the latest in a series of investments by foreign multinationals in Greek start-ups. According to data from Marathon Venture Capital, acquisitions of Greek start-ups totalled $2.59 billion in 2020.

Greek Spirits Exports of Greek spirits like ouzo and tsipouro rose 31% in the first half of 2021 compared with a year earlier to €46 million, according to an analysis by the Greek Federation of Spirits Producers based on the latest Eurostat data. In volume terms, exports of Greek spirits were up 9% from a year earlier.

Real Estate – Foreign investment in Greek real estate rebounded in the second quarter, jumping 76% from year-earlier levels to €247.7 million, according to the latest Bank of Greece data. In an interview, Enterprise Greece CEO Georgios Filiopoulos said the country has also seen increasing applications under Greece’s Golden Visa program as coronavirus-related travel restrictions have gradually been lifted, a further sign of renewed international interest in Greek property.