From an average of $4.15 billion in the three-year period 2017-2019, it reached $6.7 billion in the three-year period 2021-2023, marking an increase of 62% as the Greek economy recorded significant growth rates.
In 2020, they had fallen to $3.2 billion, but this was due to the coronavirus pandemic that led to a halt in economic activity, with global FDI plunging 58% this year.
In 2021, FDI in Greece jumped to $6.3 billion to reach an all-time high of $8.4 billion in 2022. Last year, it fell to $5.4 billion, a level that is still higher than the years of the period 2017-2019.
According to the OECD, FDI involves the acquisition of equity capital, often through acquisitions and mergers or the creation of new production units, the reinvestment of profits and intra-business borrowing.
The total stock of XAE (FDI Inward Position) in Greece increased in 2022 to 50.8 billion dollars or 23.2% of GDP.
The increase in direct investments by Greek companies abroad was also spectacular, a development that also reflects the strengthening of the Greek economy. From just 429 million dollars on average in the period 2017-219 they jumped to 2.8 billion in the three years 2021-2023. In fact, they continued to grow in 2023, reaching almost 4 billion dollars. The total stock of investments from Greek companies abroad (FDI Outward Position) amounted in 2022 to 16.7 billion dollars or 7.7% of GDP.
2023 was globally a difficult year for XAE due to the deterioration of the economic environment – with inflation and rising interest rates negatively impacting growth, especially in the Eurozone – and the geopolitical situation, with the war in Ukraine and the crisis in the Middle East to burden the climate.
According to the OECD report, global FDI (inbound and outbound) fell by 7% to 1.36 trillion. dollars, continuing the decline seen in 2022 and moving for the second year in a row at levels lower than those recorded before the pandemic.
Investment fell last year in more than two-thirds of the countries, with the most notable plunge in China, where direct investment in the country by foreign investors amounted to 42 billion. dollars from 190 billion in 2022. In India too, however, there was a significant decrease in foreign investment, with the amount of inward FDI amounting to 28 billion. from almost 50 billion dollars, respectively.
The US attracts by far the most inward foreign direct investment, with a total of $341.4 billion in 2023. dollars, when in total in the OECD countries they amounted to 501.3 billion. In second place was Brazil with 63.6 billion. dollars and in third place is Canada with 50.3 billion.
The USA also holds the scepter in terms of the stock of foreign direct investments, as reported by the Athens Agency, both inflows that amounted to 13.5 trillion in 2023. dollars or to 50.2% of the American GDP as well as outgoings which amounted to 9.5 trillion. or 35.1% of GDP. In second place is China in incoming XAE with a stock of 3.5 trillion. dollars or 20.1% of its GDP and the Netherlands in the outgoing with 3.4 billion. dollars, an amount corresponding to 309% of its GDP. However, China also has a high stock of investments from its companies abroad which amounted to 2.9 trillion. dollars or 16.6% of its GDP.
XAE was hit hard last year in the form of acquisitions and mergers (M&A), which fell to a 10-year low due to a worsening economic and geopolitical environment.
FDI in the form of new production units (greenfield investment) also moved downwards, while overall stock flows remained at lower levels than in 2005.
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