From an average of $4.15 billion in the three-year period 2017-2019, they reached $6.7 billion in the three-year period 2021-2023, an increase of 62% as the Greek economy experienced 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% in that year.
In 2021, FDI in Greece soared to $6.3 billion to reach an all-time high of $8.4 billion in 2022. Last year, they fell to $5.4 billion, a level that is nevertheless higher than in the years 2017-2019.
According to the OECD, FDI involves the acquisition of equity capital, often through mergers and acquisitions or the creation of new production units, reinvestment of profits and intra-company borrowing.
The total stock of FDI inward position in Greece increased in 2022 to $50.8 billion or 23.2% of GDP.
There was also a spectacular increase in direct investment by Greek companies abroad, a development that also reflects the strengthening of the Greek economy. From an average of just $429 million in 2017-219, it jumped to $2.8 billion over the three-year period 2021-2023. In fact, they continued to grow in 2023, reaching almost $4 billion. The total stock of investment by Greek firms abroad (FDI Outward Position) amounted to $16.7 billion or 7.7% of GDP in 2022.
Globally, 2023 was a difficult year for FDI due to the deteriorating economic environment - with inflation and rising interest rates negatively affecting growth, particularly in the Eurozone - and the geopolitical situation, with the war in Ukraine and the crisis in the Middle East weighing on the climate.
According to the OECD report, global FDI (inbound and outbound) fell by 7% to $1.36 trillion, continuing the decline seen in 2022 and moving for the second consecutive year to levels below those seen before the pandemic.
Investment fell last year in more than two-thirds of countries, most notably in China, where direct investment in the country by foreign investors fell to $42 billion from $190 billion in 2022. In India, too, however, there was a significant decline in foreign investment, with the amount of inbound FDI amounting to $28 billion from nearly $50 billion, respectively.
The US attracted by far the most inbound FDI, with a total amount of $341.4 billion in 2023, when the total in OECD countries amounted to $501.3 billion. In second place was Brazil with 63.6 billion dollars and in third place was Canada with 50.3 billion dollars.
The US also holds the sceptre in terms of the stock of foreign direct investment, both inward, which in 2023 amounted to USD 13.5 trillion or 50.2% of US GDP, and outward, which amounted to USD 9.5 trillion. In second place is China in inbound FDI with a stock of $3.5 trillion or 20.1% of its GDP and the Netherlands in outbound with $3.4 billion, equivalent to 309% of its GDP. However, China also has a high stock of outbound investment by its companies amounting to $2.9 trillion or 16.6% of its GDP.
Last year was a big blow to FDI in the form of M&As, which fell to a 10-year low due to the deterioration of the economic and geopolitical environment.
FDI in the form of greenfield investment also declined, while overall equity flows remained at lower levels than in 2005.
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