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Hot research: why Greece is losing investors. Benefits

In 2019, Greece climbed to 29th place in European countries in the rating of the ability to attract foreign direct investment, from the 35th in 2018, according to a survey by Ernst & Jung

Greece noted a significant upgrade in terms of its ability to attract foreign direct investment last year, as it rose to 29th place in European countries from 35th in 2018, according to a survey conducted by Ernst & Young.

According to the survey, in 2019 Greece absorbed 0.34% of European direct foreign investment (FDI), which is disproportionately small in relation to the population and GDP, but the growth was 69% compared to 2018.

A positive development is the increase in the share of investments in the field of digital technologies, which amounted to 15% of the total over the past three years, approaching the European average (19%).

6 out of 10 investors say government policies are “attractive”

According to a survey conducted by Ernst & Young, 62% of investors believe that the government is currently pursuing attractive policies, although they consider it important to take other measures in critical areas to further improve the investment climate. The corresponding percentage in 2018 was only 50%.

The percentage of those who assess that the country’s image as a possible area for investment improved last year (38%) remains high, although it is lower than last year (47%), while two out of three investors (69%) ) expect further improvement over the next three years, this figure is much higher than in other countries.

28% of respondents said they intend to invest in Greece next year, however, investment plans are drawn up almost exclusively by companies already established in Greece, because among those who are not represented in the country, this percentage is limited to 5%.

In terms of the type of planned investment, sales and marketing offices remain in the top positions, while the industry has seen significant growth in participation, which is in second place this year, from 26%, compared to 9% last year.

What makes investment in Greece attractive

Some of the elements that make Greece attractive are the quality of life (81%), telecommunications infrastructure (69%) and the level of human resources (66%).

In fact, the share of investors who recognize the advantages of a stable political and social environment (65% of 38%) and the country’s policy in the field of sustainable development and climate change (56% of 42%) has increased. Weaknesses include the bureaucratic and administrative environment, taxation, and access to finance.

Regarding the measures taken by the government during the pandemic, 77% of the investors positively assess the response to the health crisis, 73% – the state’s digitization rate during the crisis, and 72% – measures to support the economy, while 41% report that the indicators countries during this period improved its image as a place for investment.

However, the pandemic seems to have little impact on investment plans in Greece, as 50% of those planning to invest in our country next year say they will not change their plans, 28% say they will “freeze” temporarily »Them, 4%, which will reduce them, 3%, which will strengthen them, and 6%, which will cancel them.

Georgiadis: government strives for more

“The government as a whole and the Ministry of Development and Investment, as the competent authority, are fully fulfilling their obligations and are rapidly and effectively promoting reforms and areas to make Greece one of the most entrepreneurial and investment-friendly countries in the world.” This was stated by Minister of Development and Investment Adonis Georgiadis, who attended the presentation of the study.

Mr. Georgiadis added that this is the best result for the last 11 years, and emphasized: “we intend to do even more next year”.