The challenge of investments
Greece’s big challenge for next year is for investments to climb above 30 billion euros for the first time in the post-bailout era.
An increase by some €4 billion compared to 2022 – a year that saw the so-called “gross fixed capital formation” jump – should essentially be the main source of growth for 2023, as under the burden of inflation and the economic crisis expected to hit Europe, both private consumption and tourism can hardly contribute any more to the country’s gross domestic product
The last time investments exceeded €30 billion in current prices was in 2010. Since then, the decline has been rapid, with the biggest low recorded in 2015: €19 billion euros. For 2022 the figure is expected at around €26 billion, with an annual increase of 10%, and for 2023 Greece is hoping for a 12-year record through a new increase of 16%.
The big question is where the investments of €30 billion in one year will come from. Finance Ministry officials point to the “mammoth” Public Investment Program, with financing of over €8 billion, and the Recovery Fund, as well as private initiatives both for large direct investments and for construction, which despite the increase in interest rates and the cost of building materials are estimated to rise in 2023 as well.
