Financial services and real estate capture largest portion of FDI

Foreign Direct Investment (FDI) flows in Greece increased by 69% in 2025 compared with 2024, and were more than 50% higher than in 2022, when the previous record of $8.4 billion had been recorded.

The surge in foreign investment — which plays a significant role in economic growth — took place during a period marked by heightened uncertainty due to geopolitical tensions and the trade war involving the United States.

In the European Union, FDI flows declined by 6% in 2025, while globally they increased by 15% to $1.66 trillion. However, the underlying increase was estimated at 6% when excluding major fluctuations observed in certain European economies.

An analysis of Organisation for Economic Co-operation and Development data shows that FDI inflows were mainly driven by equity capital investments. Such investments amounted to $10.5 billion, representing approximately 82% of total inflows, while reinvested earnings reached $2 billion (15.5%), and intra-company lending from parent companies stood at just $321 million (2.5%).

Regarding sectoral allocation, services dominate FDI inflows, followed by manufacturing at significantly lower levels, while inflows into agriculture remain minimal.

Over the 2022–2024 period, for which detailed data are available, services accounted for 59% to 85% of total investment, while manufacturing ranged between 7% and 19%. Within services, financial and insurance activities attracted the largest share, with inflows exceeding $2.5 billion in both 2022 and 2024. Real estate activities also attracted substantial investment, ranging from $973 million in 2022 to $2.1 billion in 2024.

In addition, private real estate activities recorded inflows between $855 million and $1 billion over the period. The information and communications technology sector also attracted significant capital, between $320 million and $500 million across the three-year span. Service-sector investments were primarily equity-based, accounting for 58% in both 2023 and 2024.

In manufacturing, equity investments were comparatively limited, with key sectors in 2024 including food production ($206 million) and metals and machinery ($206 million).

The sustained rise in FDI inflows in recent years has significantly increased the total stock of foreign investment, although it remains relatively low by international standards. The stock of FDI nearly doubled in 2024 compared to 2018 and tripled compared to 2016, reaching approximately $72 billion, or 28% of GDP, up from $35.7 billion in 2018 and $24.6 billion in 2016.

Among Organisation for Economic Co-operation and Development and G20 economies, Luxembourg ranked first in FDI stock at 300% of GDP, followed by the Netherlands and Ireland, both exceeding 200%.

Finally, Greece’s FDI return rate in 2023 exceeded 6%, broadly comparable to that of the United Kingdom, Germany, and France.