Europa Posted on 2025-11-10 09:22:00

Greece, foreign direct investments increase - OECD: Last year, the stock reached 72 billion euros

From Dorian Koça

Greece, foreign direct investments increase - OECD: Last year, the stock reached

Confidence in the Greek economy is shown by the high inflows of foreign direct investment (FDI) into Greece, according to the latest data published by the OECD. In 2024, foreign direct investment in Greece reached 7.6 billion euros, which is the second highest amount recorded in the last 15 years after 8.4 billion euros in 2022.

Meanwhile, in the first half of 2025, foreign investment inflows continued at a high pace, reaching 3.1 billion euros from 2.5 billion euros in the corresponding period last year.

The increase in flows resulted in a stock of foreign direct investment approaching 72 billion euros in 2024, up from 66 billion euros a year earlier.

Foreign direct investments of Greek businesses abroad reached 3 billion euros in 2024, while in the first half of 2025 they reached 1.8 billion euros.

According to the OECD, there are three forms of FDI: equity purchase, which is the most important, reinvestment of profits, and intercompany lending. Equity purchase is mainly associated with new investments, which include either mergers and acquisitions or the creation of new businesses, while to a lesser extent it can reflect capital injections or financial restructuring.

Reinvestment of earnings refers to the percentage of profits that the parent company making the foreign direct investment decides not to distribute to its shareholders, but to invest in its subsidiary.

Lending between parent companies and subsidiaries is the most volatile component of FDI flows and is often driven by the short-term financing needs of companies rather than broader macroeconomic developments.

Global foreign direct investment flows remained stable, but at relatively low levels ($663 billion) in the first half of 2025. The US, Brazil and the UK were the three largest investment destinations in the world. Investment inflows to OECD countries fell by 4%, mainly due to a decline in European Union countries.

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