Greece’s Financial News
Private sector deposits increased by 4.3 billion in December
A new surge by 4.3 billion euros was recorded in December 2021 in private sector deposits in banks, the total amount of which reached 180 billion euros, a level that has not been recorded since September 2011. Cumulatively, the deposit growth in the last two years, and specifically since March 2020, has reached 35 billion euros and is a record level that, as a matter of fact, occurred in pandemic conditions, with successive lockdowns in the economy for several months. The increase recorded in December is attributed both to the increase in deposits held by households, which grew by 2.7 billion euros in one month, reaching little more 135.1 billion euros, while liquidity of companies was enhanced by 1.6 billion euros in the last month of the year, skyrocketing the balances of the deposits they hold in the banks to 44.8 billion euros.
The power of wind farms increased by 8.2% in 2021
The total wind power in Greece reached 4,451 MW at the end of 2021, as this year 128 new wind turbines with a capacity of 338.3 MW were connected to the grid, corresponding to investments of a total amount of over 340 million euros. This is an increase of 8.2% compared to the end of 2020, a growth rate that is however reduced compared to the performance of the industry in 2020 (43%), due to the pandemic and administrative barriers. By the end of 2021 new wind farms with a capacity of more than 650 MW were under construction, the vast majority of which are expected to be connected to the grid within the next 18 months.
French investment in two- and three-star hotels
The French hotel chain Boissée Finances, in collaboration with Accor and its Ibis Budget and Ibis Styles brands, is making a dynamic entrance into a new tourism market in the capital, which is currently being exploited by short-term tourist rentals. Boissée is investing 33.4 million euros in two three- and two-star hotels in Patision in central Athens, across the National Archaeological Museum, aiming to provide high-quality accommodation services in modern infrastructure and to visitors traveling to Athens with low budget and for the purpose, inter alia, of archaeological, cultural and educational tourism. Students, pupils and travelers who want to know everything that the history and culture of Attica has to offer, but also city break travelers of younger ages, are some of the types of persons that make up the relevant target audience.
Investments in Greece
After the waiting attitude of the investment community and the consolidation of the positive image recorded by last year’s research in the midst of the pandemic, in 2021 the attitude of investors towards Greece is substantially improving in respect of all critical indicators. It is important that the improvement, to a large extent, derives from businesses that have not had a presence in our country up to date, and the gap that traditionally separates their views from those of businesses established in the country, is being reduced.
Investment opportunities in Greece
Investing in the Greek logistics sector
Located at the crossroads of three continents (Europe, Asia, Africa) Greece has long been a strategic hub for the development of transport in the wider region. Maritime transport is the most important mode of global freight transport, accounting for 80% of world trade by volume and over 70% by value. Traffic through the ports of the Southeastern Mediterranean is increasing, reaching more than 8% per year. Trade flows between Asia and Southeastern Europe is expected to grow by 7% per year for the coming years. Under these conditions, the geographical position of Greece as a gateway between East and West makes it particularly attractive for investments in logistics and transport where they will benefit from these increasing trade flows in an efficient and cost-effective way.
Personal opinion
On the one hand the favorable location, research and training, and ICT infrastructure and on the other hand the specialized staff, create a potent combination motivating for investing in Greece. Greece is the EU country with the best access to eastern ICT producers such as China, Japan and Korea. This favorable location, in combination with the logistics infrastructure, make Greece ideal for the creation of assembly plants for ICT products and devices. The V-KGroup team can offer you the right advice and guidance so that you invest your funds safely in Greece.