BUSINESS

Foreign investors fled Greece last year

NIKOS ROUSSANOGLOU

TAGS: Economy

Last year was particularly negative in terms of money coming into Greece, as foreign direct investment posted a decline for the first time since the start of the financial crisis, according to data compiled by the United Nations Conference on Trade and Development (UNCTAD).

The agency’s survey showed that Greece suffered a net divestment of 289 million euros in 2015, meaning the capital that left Greece exceeded that which came in, owing to the heightening in the perceived investment risk of the Greek economy as a result of the months-long negotiations between the government and its creditors.

In 2015 the total amount of invested funds by foreign groups amounted to just 17.68 billion euros, while in 2010 it had come to 35 billion.

This proves that FDI dropped by half in the five years following the first bailout agreement in spite of the constant calls by Greek governments for investors.

A typical example of foreign investors’ aversion is found in the property market: Only 32 percent of potential foreign investors are considering placing capital in the local realty market, against 58 percent in November 2014.

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