According to the latest Bank of Greece data, net Foreign Direct Investment inflows during 2017 reached € 3,597 million vs. € 2,820 million during 2016, an increase of 27.6%, marking a record for the last decade.
2016, 2017 : 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 Germany (by far) and France being the top source countries of investment capital in the past decade, followed by Cyprus, as well as non-EU countries such as Switzerland, Canada and USA. The Netherlands, Spain, Luxembourg and China (incl. Hong-Kong) complete the top-ten countries.
Total FDI inflows by country of origin of capital during the period 2003-2010 (in million Euros)
Key features
- Investment activity in Greece originates primarily from companies in important markets such as the EU
- Germany (primarily) and France are the top source countries of investment capital during this period (2007-2017), by a large margin, mainly due to the investment of Deutsche Telecom in OTE and the acquisition of Greek banks by French ones, prior to the beginning of the crisis.
- USA, Canada and China (including Hong Kong) 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
Net 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 2003-2010
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 has been a focus on investment in real estate and logistics. 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 very low FDI inflows, 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 2007-2017 included chemical products (mainly) followed by food, beverages and tobacco.
Structure of total FDI inflows in manufacturing in the period 2003-2010
Key features
- The sector of manufacturing that attracted the most investment activity during the period 2007-2017 was chemicals (by far). Pharmaceuticals and plastic products are not included in this category, but have also attracted considerable investment interest during the last decade. Following chemicals, the sector attracting the most important FDI inflows in manufacturing is food, beverage and tobacco 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 2007-2017 included financial and insurance activities (in the lead, by far), telecommunications, real estate and logistics services. It should be pointed out that the category “real estate” for the following graph doesn’t include private real estate purchases and sales, which, according to the Bank of Greece reached 1,684 million Euros during the period 2007-2017.
Structure of total FDI inflows in services during the period 2003-2010
