IOBE: Germany Leading Investor in Greece

Photo source: Hellenic-German Chamber of Commerce.

Germany is the main investor in Greece with direct investments totaling 6.8 billion euros in 2021-2022 and accounting for 18.3 percent of all investments made in the country, according to a study released by the Foundation of Economic and Industrial Research (IOBE).

According to the findings of the study conducted by IOBE, the country’s top think tank, in collaboration with the Hellenic-German Chamber of Commerce:

-in 2021, total funds from direct investments by German entities in Greece increased to 6.8 billion euros compared to 5.6 billion euros in 2020

Source: IOBE.

– Germany led the way as the main investor in Greece in 2021 with 6.8 billion euros and a share of 18.3 percent followed by Luxembourg (6.6 billion euros), the Netherlands (6.2 billion euros) and Switzerland (3.0 billion euros)

– Greek product exports to Germany reached 2.8 billion euros in 2021, up by 21 percent compared to 2020 and increasing to 3.4 billion euros in 2022

– imports from Germany to Greece were valued at 6.9 billion euros in 2021 up by 18.3 percent over the previous year and at 8.0 billion euros in 2022.

According to Secretary General for Private Investments and PPPs, Orestis Kavalakis, 36 new strategic investment plans were approved from July 2019 to today, budgeted at over 8 billion euros.

Source: IOBE.

Tοurism is also a key area attracting German investments. According to Kavalakis, 401 applications valued at over 1 billion euros in manufacturing and 562 applications with a total value of 1.6 billion euros in tourism were included in the new development law.

In terms of PPPs, Kavalakis said that 47 projects have been approved with a total budget of 7.1 billion euros.

“The study focuses on two critical conditions for the Greek economy: the increase in exports and investments and those in the context of the economic relations between the two countries,” said Nikos Vettas, IOBE director general.

Vettas went on to stress the importance of strengthening Greece’s trade and investment relations with Germany and with other major partners, and focusing on the technological content of the investments and the qualitative upgrade of exports.