Foreign direct investments up 62% in 2021-2023, OECD reports
Foreign direct investment (FDI) in Greece has increased sharply over the last three years compared to the previous period, according to the latest Organization for Economic Cooperation and Development (OECD) “FDI in Figures” report.
The OECD found that from an average of $4.15 billion in the three-year period 2017-2019, FDI reached $6.7 billion in the three-year period 2021-2023, marking an increase of 62% as the Greek economy recorded significant growth rates.
In 2020, FDI had fallen to $3.2 billion, but this was due to the coronavirus pandemic that led to a halt in economic activity, with global FDI plunging 58% in that year.
In 2021, FDI in Greece jumped to $6.3 billion to reach an all-time high of $8.4 billion in 2022. In 2023, it eased to $5.4 billion, a level that remained higher than in the years over the period 2017-2019.
According to the OECD, FDI involves the acquisition of equity capital, often through acquisitions and mergers or the creation of new production units, the reinvestment of profits and intra-business borrowing.
The FDI Inward Position in Greece in 2022 rose to $50.8 billion or 23.2% of GDP.
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 on average in the period 2017-2019, investments abroad jumped to $2.8 billion in the three-year period 2021-2023. In fact, they continued to grow in 2023, reaching almost $4 billion. The FDI Outward Position in 2022 amounted to $16.7 billion or 7.7% of GDP. [AMNA]
