Greece invites more investments to boost its industry
The government aspires for the industrial sector to double its role in the Greek GDP by 2030
Greece is faring well in attracting productive investments, but must do more as it eyes its reindustrialization and the doubling of the industry’s importance for its economy within six years, an investment forum heard on Wednesday in Athens.
The 7th InvestGR Forum featured the annual EY survey on the country’s attractiveness for investors, that found a 6% annual growth last year in “greenfield” investments (from 47 in 2022 to 50 in 2023) against a decline in the rest of Europe, and a remarkable 51% of executives surveyed declaring their intention to develop or expand their activity in Greece this year, against 40% last year. It also showed that after tourism, the domain expected to bolster growth in Greece is that of health, wellness and pharmaceuticals.
The EY Attractiveness Survey, conducted between March and April 2024, further found that the main reason for creating or expanding a company’s activity in Greece is access to skills for 41% of respondents. The biggest risks for investing in Greece are the high interest rates and the restrictive financial conditions for 44% of respondents, while 34% are still concerned about the high national debt.
The main reasons why those surveyed expect Greece’s attractiveness to increase in the coming years are the quality of infrastructures and the strategic geographical location.
Commenting on the findings, Development Minister Takis Theodorikakos said “that 51% rate is very high, but we are determined to achieve an even higher score in attracting investors.”
He then stressed his focus on the country’s “reindustrialization” as the main feature of Greece’s new production model, on the restructuring of Greek industry and on a new national strategy on manufacturing that relatively shortly, with the first target date being 2030, will lead to “the doubling of industry’s role in the GDP and to the considerable increase in jobs.”
Addressing the same event, National Economy and Finance Minister Kostis Hatzidakis stressed that Greece remains on the path of fiscal prudence, “toeing the line of national responsibility.”
He ruled out another extension to the July 26 deadline for the submission of tax returns, saying that “we were quick in extending the original [June 30] deadline from the outset,” and responded to calls for the reduction of value-added tax on certain commodities as “clearly having populist features.”
Social Cohesion and Family Affairs Minister Sofia Zacharaki also addressed the forum, highlighting the issue of demographics and stressing that investment in cohesion and education is paramount, especially regarding the investment in the skills at pre-school ages (i.e. up to the age of four years).
