Foreign direct investment (FDI) in Greece nearly doubled in the first seven months of 2026, reaching €7.6 billion, according to the latest data from the Bank of Greece.
FDI inflows rose from €3.9 billion in the same period of 2025 and were roughly three times higher than in the first seven months of 2019, when they totaled €2.5 billion.
The strong performance follows a record €12.6 billion in FDI in 2025.
Two major deals drive 2026 increase
Two major business developments contributed significantly to this year’s increase.
In January, Italian bank UniCredit increased its stake in Alpha Bank from 20% to approximately 30%. As a result, FDI inflows reached €2.2 billion that month.
In May, Greece’s Public Power Corporation (PPC) completed a €4.25 billion capital increase, attracting strong interest from international investment firms.
CVC Capital Partners, PPC’s largest private shareholder and its second-largest shareholder overall after the Greek state, with a stake of approximately 17%, announced that it would participate in the capital increase with €1.2 billion. Foreign investment inflows reached €1.7 billion in May.
Under the methodology cited by Greece’s state-run Athens-Macedonian News Agency, a share purchase by a foreign company is classified as direct investment rather than portfolio investment when the foreign investor’s stake in the domestic company exceeds 10%.
Excluding January and May, FDI inflows averaged approximately €750 million per month through July.
Detailed data on the sectors receiving this year’s investment have not yet been published. However, the trend of recent years indicates that services have been the main destination for foreign capital, followed by real estate and manufacturing.
Services attract more than half of 2025 FDI
Final Bank of Greece data for 2025, released October 1, provide a detailed picture of where foreign investment has been flowing.
FDI inflows into the services sector totaled €6.7 billion, accounting for more than half of all FDI.
The largest areas within services were:
Real estate management: €1.7 billion, or 13.9% of total FDI
Financial and insurance services: €1.5 billion, or 11.7%
Information and communications: €1.4 billion, or 11%
Transportation and storage: €1.2 billion, or 9.6%
Wholesale and retail trade: €468 million, or 3.7%
Private real estate purchases accounted for an additional €701 million, or 5.6% of total FDI.
Overall, real estate — including both corporate property management and private purchases — continued to attract significant foreign capital, although inflows declined to €2.4 billion in 2025, from €2.8 billion in 2024.
It was the first decline in foreign investor interest in the sector since 2020. According to the Bank of Greece, the decrease may have been linked to high construction costs and, in particular, the increase in the minimum investment threshold under Greece’s Golden Visa program.
Energy investment surges
Investment in the energy sector surged in 2025 to €4.1 billion, accounting for 33% of total FDI.
The increase was associated with the restructuring of Metlen and the trading of its shares on the London Stock Exchange.
Manufacturing attracted €393 million in investment, primarily in basic metals, computers and chemical products.
In terms of how FDI was structured in 2025, 41% involved mergers and acquisitions, while 21.3% consisted of purchases of new shares.
Real estate purchases accounted for 16.4%, while 15.4% involved reinvested earnings. The remaining 6% consisted of loans from parent companies to their subsidiaries.
UK, Switzerland and Germany among major sources
According to Giannis Stournaras, governor of the Bank of Greece, the increase in foreign investment has been particularly significant over the past five years.
In a statement to the Athens-Macedonian News Agency, Stournaras said FDI inflows rose substantially between 2021 and 2025, exceeding €12 billion in 2025, equivalent to approximately 5% of Greece’s GDP.
By comparison, FDI totaled €4.5 billion in 2019, or 2.4% of GDP.
Stournaras said the positive trend continued during the first seven months of 2026, with FDI flows nearly doubling compared with the corresponding period of 2025.
The most important sources of foreign capital during the previous five-year period were the United Kingdom, Switzerland, Luxembourg, Germany and the United States.
These investments were directed toward sectors including financial activities, electricity generation and manufacturing, while real estate also remained significant.
Stournaras highlights productivity and skilled jobs
Stournaras said the importance of FDI extends beyond the capital entering the Greek economy.
Foreign investment also contributes to the transfer of know-how, innovation and advanced business practices from investing companies, strengthening the productivity and competitiveness of both domestic businesses and the wider economy.
He also highlighted the employment impact of foreign investment, noting that the jobs created are often highly specialized and can help retain highly skilled workers in Greece.
“FDI can therefore play a catalytic role in the productive transformation of the economy and in broadening the country’s export base,” Stournaras said.
SOURCE: tovima.com
