FDI is set to keep rising next year
Foreign direct investment (FDI) in Greece is expected to set a historic record this year and will have an increased contribution to the future growth mix, Alpha Bank predicts in its Weekly Economic Developments Bulletin.
Investments will be a driver of economic growth in 2023, Alpha analysts argue, explaining that this is mainly thanks to the remarkable improvement of the economic environment. This is shown in the report of the Economist Intelligence Unit, according to which Greece rose 16 places in the relevant ranking, marking the biggest improvement among 82 economies. Accordingly, an improvement of four places was noted in the OECD International Tax Competitiveness Index in 2021.
Analysts say the strong upward momentum in FDI will continue after posting an new all-time high in 2022, with inflows in the first half of the year rising 82% from the same period in 2021.
Other factors include the significant inflow of investment funds in 2023 through both the Recovery Fund and the Public Investment Program, the adjustment of labor costs to the inflationary context and the return to primary surpluses from 2023 with the marked fall in the debt-to-GDP ratio this and next year.
