Recent FDI Inflows in Greece
& Major Investment Projects
Despite the international financial crisis, FDI Inflows in Greece registered a substantial increase in 2008. According to Bank of Greece data, gross inflows of funds from foreign investors reached 6.48 million Euro, while net inflows reached 3.46 million Euro.
It is important to underline that a large share—about 60%—of the FDI total was directed towards new business establishment, mergers, and acquisitions, and the remainder towards loans and the purchase of real estate. In addition, 700 million Euro of this total represents reinvested earnings, a sure sign of confidence among investors and a strong message of their intent to remain in Greece for the long term. Of the total, the amount of loans, at 1.90 billion Euro, is a positive sign of investor confidence, indicating a strong willingness to commit funds for projected revenues and growth.
During the period 2006-2008, gross FDI inflows reached an impressive level of 18.10 billion Euro, while net inflows reached 9.15 billion Euro. In the same period, outflows totaled 8.93 billion Euro. A significant share of these outflows was for working capital for their subsidiary companies in Southeast Europe, in which case Greece is fulfilling its important objective of a “bridge function” role.
The most significant FDI Inflows for 2008 on a monthly base are:
Note: In December, non-residents' direct investment in Greece recorded a net inflow of €153 million.
(Source: Bank of Greece)