Interest for investing in Greece remains strong despite the interventions still needed in crucial sectors for the investment climate to improve further. The majority of investors surveyed by Ernst & Young Greece, i.e. 62%, acknowledge that the country is pursuing a policy on investments that is making it attractive, with the efficient management of the Covid-19 health crisis also contributing in the improvement of Greece’s international image.
According to the report titled “EY Attractiveness Survey Greece 2020” and presented on Wednesday at the third InvestGR Forum, Greece last year ranked 29th in Europe in the number of foreign direct investments, up from 35th in 2018 and an average place of 32nd in the last decade. Greece absorbed just 0.34% of foreign direct investments in Europe, a disproportionately small share given its gross domestic product and population; nevertheless it constitutes a 69% increase from the previous year.
Another positive development has been the increase in investments in the crucial sector of digital technology, which in the last three years has amounted to 15% of all FDI in Greece, approaching the European average rate of 19%.
The disposition of investors who have already invested in Greece remains positive despite the pandemic, unlike those without a presence in the country who appear much more reserved. Therefore, the share of those who believe that Greece’s image as a possible investment destination has improved in the last year remains high (38%), even though it trails last year’s 47%.
The outlook is much better for Greece, as almost seven out of 10 investors expect a greater improvement over the next three years. This is a rate that is higher than in most other countries.
Five out of eight (62%) enterprises believe the country is following a policy that makes its more attractive (up from 50% last year) and 28% responded they intend to invest in Greece next year, compared with 26% in Portugal, 16% in France and 10% in Belgium.