Foreign Direct Investment (FDI) in Greece has been fluctuating for a certain period, but it can be said that Greece is on a steady path as figures show. Since 2013, there has been an annual increase in FDI, and the country seems to work on improving the conditions for foreign investors. Investors seem to be confident to invest in the country since it is a fertile ground for capital flow, and the government has also made an effort to reduce production costs.
Investment Capital By Country of Origin
Even if Germany seems to have reduced its FDI flow to Greece, it still remains high ranked, and if we look at the previous decade, it is clear that Germany invested the most in Greece. Recently, since 2013, Canada and the USA have joined the invest-in-Greece trend and occupy the top positions in the DFI ranking. Other loyal investors in Greece are UK (to a lower extent), Luxembourg, and the Netherlands.
Future estimates suggest that more capital flow will come from Northern America, but also from the nearer region in Eastern and Southern Europe. Many expect Russia to become one of the key FDI players. Since the main focus is on the energy sector in Greece currently, it means that countries like China and the Arab countries might also look for an opportunity to invest in the lucrative energy and natural resources business.
When is the Ideal Time to Buy?
Even if Greece became known as the country that financially collapsed, experienced investors will know that the price is right when the time is well, not bright. It is best to invest when times are depressed! Investors can use the opportunity when prices are at their low and multiply their value. The economy and the investor profit both from the situation.
The MSCI Greece Index
The Morgan Stanley Capital Index is a very reliable source of the economic news since it tracks down global markets. The MSCI is a valid identifier of the stock market and prices, and there was a period when the Greek MSCI stood very low. When we take a look at the pre-crisis era in 2007 when many indexes showed a flourishing economy at the global level, including Greece whereby its MSCI hit the high of 1,040. After the crisis, the MSCI never reached that high again, and now it is around 53. This means that the Greek markets and stocks are not where they used to be. At one point, Greek was even relegated to an emerging market from a developing country in 2013. Such statistics suggest that investments could be risky, but the risk does not entirely derive solely from Greece.
Investing in Stocks
On the bright side, many foreign companies have their seats in Greece, and they are generating profits. When it comes to investments in Greece, one has to look at the broader picture. It is not only the Greece MSCI; it is the entire Eurozone. When the Euro drops against the dollar, everyone suffers. Therefore, it is always better to invest in stocks, then in currencies, since it is a safer way to protect oneself against the global economy fluctuations.