Investment in Greece Remains Low Despite Favorable Growth Rate



The ratio between Greece’s GDP and the amount of investment in the country is the lowest in the European Union, according to the latest figures recently released by ELSTAT.

The Greek Statistics Authority has determined that the value of investments in Greece for the year 2018 reached €20.4 billion, down from €23.216 billion in 2017.

This figure represents 11.1 percent of the country’s Gross Domestic Product (GDP), a percentage which is much lower than the EU average, which is 20.8 percent.

Despite the growth of the Greek economy, after nearly a decade of recession and financial crisis, the business climate in terms of investments in the country remains rather stagnant.

Similar figures for investments were recorded in Greece in the year 1996, nearly a quarter of a century ago.

The negative trend which began in 2008 has showed a steady stabilization since 2012. Graph by Kathimerini

Today’s value of investments is one third of the investments made in the country in 2007, the last year before Greece entered the spiral of recession and economic hardship.

Portugal, a country with a similar size of economy to that of Greece, had investment worth 16.6 percent of its GDP in 2018, with Cyprus showing an investment rate even higher than the EU average, at approximately 21 percent.