Greece’s privatization program has boosted the country’s GDP by about 1 billion euros annually on average in the period 2011-2019, according to a survey released this week by the Foundation for Economic and Industrial Research (IOBE).
Over the same period, the average impact on employment was close to 20,000 full-time jobs, researchers estimated, according to an e-mailed press statement issued by the Hellenic Republic Asset Development Fund (TAIPED).
The strong positive socio-economic impact of the privatization program on the Greek economy during a particularly difficult period for the country, according to the study, is not limited to the time of completion of each transaction but extends to the future and in many cases strengthens over time, resulting in significantly more robust economic activity.
Experts noted that the new shareholders have brought significant investments and changes to the business model, pointing to the privatization of the Piraeus Port Authority (OLP) as a case in point.
China’s Cosco Shipping acquired a majority stake in OLP in 2016 following an international tender and has already started changing the port’s outlook significantly.
The Chinese company’s subsidiary Piraeus Container Terminal (PCT) has been managing the port’s container terminals since 2009, posting remarkable results as well.
“The privatization of Greece’s largest port has already led to a tremendous increase in the volume of transported containers, leading it to 4th place in Europe (from 17th place in 2007) and 1st place in the Mediterranean Sea,” read TAIPED’s press release.