Economy | Greece | Analysis

Greece proves resilient as an investment destination

According to the new comprehensive survey by EY Greece, EY Attractiveness Survey Greece 2025. Ρώτα το ChatGPT

RE+D magazine

15.07.2025

The overall sentiment of international investors towards Greece remains positive, in a year when foreign direct investment (FDI) in Europe declined by 5% in 2024 — reaching its lowest level since 2017 — and concerns are mounting due to geopolitical uncertainty and trade wars, according to the new EY Greece study, EY Attractiveness Survey Greece 2025.

Greece continues to consolidate its position as an attractive destination for foreign direct investment (FDI), according to the latest EY Attractiveness Survey, conducted by FT Longitude between 10 and 28 March 2025, with a sample of 250 international investors. The survey’s findings were presented by Giorgos Papadimitriou, CEO of EY Greece, during the 8th InvestGR Forum, held on 15 July 2025 in Athens.

FDI Performance in 2024: Resilient Amid Regional Slowdown

Despite a general investment deceleration across Europe, Greece recorded 35 greenfield investment projects in 2024, compared to 50 in 2023, according to EY’s European Investment Monitor (EIM). This marks the fourth-highest annual performance in the past 25 years of EIM tracking. Notably, the cumulative FDI inflows of the last five years account for 53% of the total projects recorded since 2000.

It is important to highlight that the EIM only includes greenfield investments—those generating new facilities and employment—excluding mergers and acquisitions, privatizations, tourism, and real estate investments. This methodology explains the divergence from data published by the Bank of Greece, which reported a 37% increase in the total value of FDI inflows in 2024.

Investment Shift Toward High Value-Added Sectors

The 2025 survey confirms a notable qualitative shift in the nature of foreign investments. Greece is increasingly attracting projects in knowledge-intensive sectors. The software and IT services sector accounted for 26% of total greenfield projects, far exceeding the EU average of 15%. Additionally, 14% of investments were directed toward internet data centers, underscoring Greece’s transformation into a tech-forward economy.

Investor Confidence Remains High

Nearly one in two investors (48%) expressed intentions to expand or establish operations in Greece within the next 12 months—a marginal decline from last year’s record 51%, but a far more stable trajectory than the overall 13-point drop seen across Europe (from 72% to 59%).

Planned investments focus primarily on:

Support services (50%)

Sales and marketing (48%)

Research and development (R&D) (37%)

A key driver for these decisions is access to skilled talent, cited by 39% of respondents.

Greece’s Attractiveness Policies Viewed Favorably

Investor sentiment on the effectiveness of Greece’s FDI policy framework continues to improve. A record 82% consider the country’s investment strategy effective, up from 79% in 2024 and just 50% in 2019. In particular, Greece scores well in:

Talent attraction (70%)
Business attraction (69%)
Innovation ecosystems (66%)
Capital mobilization (63%)
Areas needing improvement include attracting corporate headquarters (51%) and global competitiveness hubs (50%).
Investors also rated Greece’s policy approaches positively in sectors such as:
Data and technology (65%)
Sustainable development (64%)
Artificial Intelligence (AI) (63%)
Innovation (58%)
Regulatory environment (56%)
However, fiscal competitiveness (46%) and labor market conditions (40%) remain areas of concern.

Key Risks: Geopolitical and Economic Pressures

This year’s findings reflect a shift in perceived risks. Geopolitical tensions and conflicts emerged as the top concern for the next three years (39%), rising from fifth place in 2024. Other key risks include:

Macroeconomic conditions (32%)
Trade barriers and tariffs (28%)
Energy and raw material security (28%)
Positive Outlook for the Next Three Years

60% of investors reported an improved view of Greece over the past year (compared to 62% in 2024). Among investors with no current presence in the country, the share with a favorable view rose to 41%. Additionally, 63% believe Greece’s investment attractiveness will further improve over the next three years, slightly below last year’s 69% but still above the European average of 61%, and higher than comparable countries such as Portugal, Romania, and the UK—trailing only France and Belgium.

Greece’s Reindustrialization Potential

Addressing the strategic challenge of reindustrialization, 76% of investors described Greece as an attractive destination for industrial investment, with 20% labeling it “very attractive.” Sectors offering the most promising opportunities include: