Greece Emerges as Stable Hub for Investment

A key turning point in Greece's economic narrative was the regaining of an investment-grade sovereign debt credit rating from all major agencies by 2025. S&P, for instance, upgraded Greece to 'BBB' in April 2025, citing strong fiscal performance and a reduction in government debt. This renewed confidence is reflected in Foreign Direct Investment (FDI), with 49% of all investment projects since 2000 occurring after the country's 2019 bailout exit. While FDI flows reached a record USD 8.4 billion in 2022, they stood at a strong USD 5.4 billion in 2023. The turnaround has been underpinned by significant government reforms aimed at improving the business climate. Initiatives include digitalizing government services, reducing bureaucracy, and leveraging €35.95 billion in EU Recovery and Resilience funds set to flow into the country by mid-2026. Investment is diversifying beyond traditional sectors. While real estate (18.4%) and manufacturing (14.7%) remain key, knowledge-intensive sectors like software and IT services (24%) are now attracting significant foreign capital. Other growth areas include renewable energy, logistics, and agri-tech. Major U.S. companies like Microsoft, Meta, Pfizer, and Amazon Web Services have launched significant projects, injecting billions into the economy. These are part of a broader trend, with Luxembourg, Cyprus, and the Netherlands being the largest holders of FDI stock in Greece. Tourism remains a powerhouse, directly contributing €30.2 billion, or 12.7% of GDP, in 2024, with its total economic footprint estimated at over 30%. The country welcomed 36 million inbound tourists in 2024, a nearly 10% increase from the previous year. Looking ahead, massive infrastructure projects are underway, including the €8 billion Ellinikon urban development on the former Athens airport site. Additionally, Crete is getting a new €1.5 billion international airport at Kastelli, and 14 regional airports have been modernized to support continued growth.