Greece must shift its focus to attract FDI

The economic sectors that Greece needs to focus on to attract foreign direct investments are aircraft construction, shipyards and engineering equipment production, according to a study by IHS Markit.

All studies conducted to date on the growth prospects of the Greek economy had pointed to tourism, agriculture and food & drink as the sectors that could propel Greece to recovery.

The study, titled “How Can the Greek Economy Achieve Sustainable Growth?” – which was presented yesterday in Athens – argues instead that the answer lies in domains that had been active in Greece in previous decades but were allowed to decay, while some have come under state control.

IHS Markit argues that future investment in tourism, agriculture and food & drink would only fetch short-term benefits, as it would only feed unbalanced growth in Greece while the country continues to depend on imports.

Tourism, the study says, has a disadvantage in that its enterprises only have a limited number of companies as suppliers, which brings no surpluses or multiplying benefits. Engineering equipment manufacturing, on the other hand, has the potential to create major multiplying benefits, as do shipbuilding and aircraft construction.