Foreign direct investment in Greece increased by 77% in 2020, a report by multinational accounting firm Ernst & Young Greece (EY) revealed on Wednesday.
EY’s Greece investment report says the improving economic situation indicates that Greece is emerging as an attractive destination for investment.
“All foreign investors who have come to Greece in recent years have already made a lot of money,” Greek Development Minister Adonis Geordiadis told Greek Reporter recently.
EY’s survey was officially presented on Wednesday during the opening session of the 4th InvestGR Forum 2021: Reforming the Greek Economy, by EY Greece CEO Panagiotis Papazoglou. It was conducted by Euromoney on behalf of EY using online questionnaires between March 29 and April 28, 2021.
Based on its findings, seven out of ten investors agree that Greece is currently following a more effective policy to attract investment, as the country’s image as an investment destination has improved significantly among the global investment community. .
The results showed a marked improvement in Greece’s attractiveness, despite increased uncertainty, strong competition and new parameters at play, such as pressures for more sustainable growth and the accelerated digitalisation of the economy.
According to the ΕΥ European Investment Monitor, the number of foreign direct investments (FDI) in Greece increased by 77% in 2020, with Greece absorbing 0.7% of European FDI in 2020 – more than doubling its average over the last two decades, but still low relative to the country’s population and GDP.
Investment ranking in Greece increases
As a result, his ranking rose to 23rd in 2020 from 29th the previous year and 35th in 2018.
More than half of investment was directed to knowledge-intensive sectors, of which 28% was directed to business and professional services and 23% to software and computer services.
The percentage of companies that see Greece as a potential investment destination rose from 38% to 62% last year, while 75% of investors expect further improvement over the next three years – the highest level among countries conducting similar surveys this year. .
The number of companies that think Greece currently follows an attractive policy for investment has risen to 71%, from 62% in 2020 and 50% in 2019.
There has also been an increase in the number of those who say they intend to invest in Greece in the coming year, up to 34% from 28% in 2020.
Sales and marketing businesses continue to rank first in planned investment, at 33%, while research and development follows at 18%, along with manufacturing at 18%. While tourism continues to be seen as a key driver of growth at 51%, the number of people citing the digital economy has risen to 26% (from 14%), followed by logistics (25%) and l energy/utilities (21%).
Among the advantages of the country, according to the survey, are the quality of life (78%), transport and logistics infrastructure (76%), telecommunications and digital infrastructure (73%) and the level of competence of the population. labor (70%).
Less favorable are the ratings for business taxation (42%) and flexible labor laws (47%).
Commenting on the EY report, Greek Prime Minister Kyriakos Mitsotakis said Greece has emerged as an attractive investment destination.
“Not only because it ranks it, for the first time, among the 10 most promising European countries for new projects, but also because almost two thirds of the companies that took part in the survey consider [Greece’s] improved image compared to the previous year, despite the difficulties caused by the pandemic.
“In addition, more than a third of companies respond that they plan to develop or expand their business in our country,” Mitsotakis said.
Minister of Development and Investments, Adonis Georgiadis, has announced that a new digital application will soon be unveiled, allowing investors to follow their investment file at every stage of the process.