Greece has experienced a significant surge in foreign direct investment (FDI) over the past three years, marking a notable increase compared to previous periods, as outlined in the latest Organisation for Economic Cooperation and Development (OECD) report titled "FDI in Figures".
The report highlights that FDI in Greece skyrocketed from an average of $4.15 billion in the three-year period of 2017-2019 to $6.7 billion in the subsequent three-year period of 2021-2023, representing a remarkable 62% growth. This surge coincides with robust economic growth rates recorded in the Greek economy during this period.
While FDI experienced a temporary setback in 2020, dropping to $3.2 billion due to the economic repercussions of the COVID-19 pandemic, the subsequent years saw a remarkable rebound. In 2021, FDI in Greece surged to $6.3 billion, reaching an all-time high of $8.4 billion in 2022. Although FDI moderated slightly to $5.4 billion in 2023, it remained significantly higher than pre-pandemic levels.
The OECD report defines FDI as encompassing various forms of investment, including equity acquisitions, mergers, establishment of new production units, reinvestment of profits, and intra-business borrowing.
In addition to inward FDI, the report also highlights a substantial increase in outbound investments by Greek companies abroad, indicating the growing strength of the Greek economy. Investments abroad surged from an average of $429 million during 2017-2019 to $2.8 billion in 2021-2023, with further growth observed in 2023, reaching nearly $4.0 billion.
Despite global challenges in 2023, including economic instability, inflation, rising interest rates, and geopolitical tensions such as the war in Ukraine and crises in the Middle East, FDI worldwide experienced a decline of 7% to $1.36 trillion. This decline marked the second consecutive year of FDI levels lower than those recorded before the pandemic.
Notably, investments decreased in more than two-thirds of countries, with significant declines observed in China and India. The United States remained the top destination for inward FDI, attracting $341.4 billion in 2023, followed by Brazil with $63.6 billion and Canada with $50.3 billion, according to the OECD report.
(Source: Amna)
