High foreign direct inflows show confidence in the Greek economy investments (XAE) in Greeceaccording to the latest data announced by the OECD (FDI in figures).
In 2024, foreign direct investment in Greece reached 7.6 billion euros, which is the second highest amount recorded in the last 15 years after 8.4 billion euros in 2022.
In the first half of 2025, foreign investment inflows continued at a high rate, reaching 3.1 billion euros from 2.5 billion euros in the corresponding period last year.
Increased flows have resulted in Greece’s FDI stock approaching €72 billion in 2024 from €66 billion a year ago.
The foreign direct investments of Greek companies abroad amounted to 3 billion euros in 2024, while in the first half of 2025 they amounted to 1.8 billion euros.
According to the OECD, there are three forms of FDI: the acquisition of equity capital, which is the most important, the reinvestment of profits, and intercompany lending. The acquisition of equity capital is basically associated with new investments, which concern either acquisitions and mergers (M&A) or the creation of new businesses (greenfield), while to a lesser extent it may reflect capital reinforcements or financial restructurings.
Profit reinvestment refers to the percentage of profits that the parent company making the XAE decides not to distribute to its shareholders but to invest in its subsidiary.
Parent-subsidiary borrowing is the most volatile component of FDI flows and is often driven by short-term corporate financing needs rather than broader macroeconomic developments.
Global FDI flows remained stable, but at relatively low levels ($663 billion) in the first half of 2025. The US, Brazil and the UK were the top three investment destinations in the world. Investment inflows to OECD countries fell by 4%, mainly due to the declines in European Union countries.
Cross-border acquisitions and mergers declined, while greenfield investment peaked in developed economies, with a focus on manufacturing and AI-related infrastructure (such as data centers).
Foreign investment through the acquisition of equity capital fell significantly in the first half of 2025, approaching the levels seen during the pandemic. The US was the first OECD country to receive this form of FDI ($46 billion), followed by Canada ($22 billion) and Britain ($18 billion).
The three largest M&A deals took place in Germany, the US and France.
In particular, it is about:
- the merger of Germany’s Schenker, which provides services for truck transport, with Denmark’s DSV A/S, which operates in the industrial and transport sector
- the merger of the American steel industry US Steel Corp with Japan’s Nippon Steel Corp and
- the acquisition of the French Opella Healthcare Group SAS by the American Clayton, Dubilier & Rice for 11 billion. dollars.
In total, these three deals accounted for 11% of the value of all deals completed in the first half of 2025.