Foreign direct investment (FDI) in Greece has increased sharply over the last three years compared to the previous period, according to the latest Organisation for Economic Cooperation and Development (OECD) report “FDI in Figures”.
From an average of 4.15 billion dollars in the three-year period 2017-2019, it reached 6.7 billion dollars in the three-year period 2021-2023, marking an increase of 62% as the Greek economy recorded significant growth rates.
The increase in direct investments by Greek companies abroad was also spectacular, a development that also reflected the growing strength of the Greek economy. From just 429 million dollars on average in the period 2017-2019, investments abroad jumped to 2.8 billion dollars in the three-year period 2021-2023. In fact, they continued to grow in 2023, reaching almost 4.0 billion dollars. The FDI Outward Position in 2022 amounted to 16.7 billion dollars or 7.7% of GDP.
The year 2023 was difficult for FDI worldwide due to the deterioration of the economic environment – with inflation and rising interest rates negatively impacting growth, especially in the Eurozone – and the geopolitical situation, with the war in Ukraine and the crisis in the Middle East.
According to the OECD report, global FDI (inbound and outbound) fell by 7% to 1.36 trillion dollars, continuing the decline seen in 2022 and moving for the second year in a row at levels lower than those recorded before the pandemic.
Investments in 2023 fell in more than two-thirds of the countries, with the most notable plunge in China, where direct investment in the country by foreign investors amounted to 42 billion dollars from 190 billion in 2022. In India too, however, there was a significant decrease in foreign investment, with the amount of inward FDI amounting to 28 billion from almost 50 billion dollars, respectively.
The US attracted by far the most inward foreign direct investment, with a total of 341.4 billion dollars in 2023, whereas total investments for all OECD countries amounted to 501.3 billion dollars. Brazil came second with 63.6 billion dollars and Canada third with 50.3 billion dollars.
