2024-07-19 00:57:22
Our country remained a strong investment “player” in the Balkans in 2023 as well, according to the latest data from the Greek Offices of Economic and Commercial Affairs at the relevant Greek Embassies.
An increase in Greek investments is recorded in Romania, Bulgaria, Albania and Turkey, in contrast to North Macedonia where in 2023 a negative flow of Greek FDI is observed, as well as a decrease in imports from Greece.
North Macedonia
In 2022, Greek Foreign Direct Investment (FDI) Stocks in North Macedonia expanded further and amounted to 728.6 million euros (from 612.1 million euros in 2021 (16% change).
Greek Stocks in 2022 accounted for 10.4% of all FDI in the neighboring country and Greece rose for the first time to the second place among the countries with the largest stocks of FDI in North Macedonia.
It is recalled that Greek investments mainly concern the energy, infrastructure – construction, retail and especially food sectors, as well as the financial sector.
Regarding FDI flows to North Macedonia, in 2023, a negative flow of Greece to North Macedonia is observed in the amount of -26.91 million euros (data of flows of the Central Bank of North Macedonia, December 2023).
According to the available data, the companies of Greek interests operating in North Macedonia are estimated at around 300.
The main sectors of economic activity, in which Greek FDI is concentrated, are banking (only Stopanska Banka of the ЕТЕ Group remains, as Alpha Bank was acquired in 2016), petroleum, electricity, manufacturing and textiles, mining and quarrying, food/beverage trade, consulting, accounting and law firms, and tobacco businesses.
A decrease was also recorded in 2023 in the commercial relations of the two countries.
In particular, bilateral trade relations have shown an upward trend in the last five years with the exception of the years 2020 and 2023. Especially in 2023, the trade volume saw a decrease of approximately 20.1%, compared to 2022, amounting to approximately 1.35 billion euros (from 1.69 billion euros), with a share of 6.95% on the total volume of foreign trade (from 8.2% in 2022).
The total of Greek exports to North Macedonia, in the period under review, was 1.04 billion euros, registering a decrease of 23.4% due to the drop in energy prices.
North Macedonia’s product exports to Greece reached 306.5 million euros, showing a small decrease compared to last year (6.5%). The trade balance remained in surplus in favor of Greece, with a surplus of €737.3 million (from €1.03 billion in 2022).
Overall, in 2023 our country was in third place as North Macedonia’s trading partner.
Albania
At the end of December 2023, the Greek Foreign Direct Investments (stock) in Albania amounted to 236 million euros, according to data from the Greek office of EI Tirana, compared to 208 million euros at the end of 2022.
Although upward, this path certainly cannot be described as impressive, given the large increase in FDI received by Albania in 2023 and continuing this year.
The Albanian Prime Minister, Edi Rama, also spoke of a “dramatic reduction in the volume of Greek investments in Albania” in his speech at the Greece-Albania Forum organized by the Delphi Economic Forum in March 2023, noting that “the volume of Greek investments investment in Albania has dropped dramatically. From over 1 billion euros in 2017 to 200 million euros.”
According to the latest data from the Albanian Central Bank, foreign companies invested 354 million euros in Albania in the first quarter of 2024, with a significant contribution from Turkish and Italian companies. This means an increase of 47 million euros compared to the same period last year (307 million in 2023).
Turkish investments were at the top, totaling €69 million, representing around 20% of total foreign direct investment (FDI) inflows. Italy followed with 41 million euros, while the contribution of Austria, the Netherlands, Kosovo and Germany was also important.
Investments from countries such as China, Greece, Sweden, France and Slovenia were comparatively lower, ranging from 1 to 3 million euros. In the last year the biggest increase in investment flows to Albania was recorded by Austria, North Macedonia and Kosovo, with an increase of 48%, 50% and 82% respectively.
It should also be noted that the arrivals of visitors from Albania to Greece increased by 26.4% in 2023, reaching 1,086,400 compared to 859,600 in 2022.
Romania
Our country rose to the fifth place among the main investing countries in Romania for 2023, compared to the eighth place it occupied in 2022.
According to data from the Romanian Commercial Registry Service/Oficiul Național al Registruului Comerțului-ONRC, concerning the total of invested foreign capital/FDI Stock in Romania by country/number of companies for the whole of 2023, which were published by the Greek Office of OEY in Bucharest, there is an increase in both invested capital and the number of registered businesses.
Greece’s total investments/FDI Stock in Romania during the same period reached 2.44 billion euros, compared to 1.5 billion euros in 2022 (an increase of 59.5%, mainly due to the acquisition of Enel by PPC) representing 5% of the total (3.29% in 2022). Also, Romanian companies with participation of Greek capital amount to 8,624, compared to 8,398 companies in 2022.
Regarding bilateral trade relations, in 2023, according to ELSTAT data, there was a small drop both in Greek exports to Romania, which amounted to 1.826 billion euros compared to 1.835 billion euros in 2022, while imports of Romanian products into the country they amounted to 1.041 billion euros against 1.044 billion euros.
The main exported products from Greece to Romania are toys, oil products, construction industry products – copper wires, semiconductor devices, iron wire, aluminum plates-films and sheets, aluminum bars-, chemical industry products -fertilizers-, plastics industry products – styrene polymers, ethylene polymers, plates-sheets-films-films from plastic materials-, PCs, fresh fruits (citrus, apricots-cherries-peaches, bananas) and prepared olives.
Accordingly, the main products imported into Greece from Romania are wires and cables, passenger cars, gas meters, sheep and goats, cigarettes, water, furniture, petroleum gases, telephone devices and detergents.
Bulgaria
According to data from the Central Bank of Bulgaria (BNB) edited by the Greek office of Sofia Sofia, in 2023 Greek direct investments in Bulgaria (stock) increased to 3.570 billion euros against 2.958 billion euros in 2022 and 2.814 billion euros in 2021.
In fact, according to the Bulgarian state investment attraction agency Invest Bulgaria, Greek FDI in Bulgaria is even greater, because a large part of the investment capital inflows of Greek companies comes from Luxembourg, Cyprus and the Netherlands.
With regard to the bilateral trade balance, according to preliminary data from ELSTAT processed by the Greek IEA office, Greek exports to Bulgaria decreased in 2023 by 17.79%, reaching 3.462 billion euros compared to 4.211 billion euros in 2022. while imports into Greece from Bulgaria increased by 7.27%, reaching 2.803 billion euros against 2.613 billion. euro of 2022.
The top five products in Bulgaria’s exports to Greece include wheat, rye (except for seed), sunflower or safflower oil, white sugar, corn and crude sunflower oil.
In the top five respectively of the products that Bulgaria imports from Greece, gas oil, refined copper waste and residues, photovoltaic cells, natural gas and plastic toys are included.
The tourist flows to our country from Bulgaria also moved strongly upward in 2023. Specifically, arrivals from Bulgaria to Greece registered a 58.63% increase in 2023 compared to 2022, rising to 2,874,587 compared to 1,812,084.
Turkey
At 2.724 billion Greek exports to neighboring Turkey reached €2.502 billion in 2023. euros in 2022, while Turkish imports to Greece decreased to 1.818 billion euros, according to data from ELSTAT published by the Greek office of OEY Ankara.
In terms of investments, Greek investments in Turkey in 2022 increased to 352 million euros from 345 million in 2021, while Turkish investments in Greece increased in 2022 to 312 million euros against 104 million in 2021.
The most important Turkish investments in Greece come from the companies Dogus Group (investments in tourist infrastructure-marinas), Eren Holding (paper mill-packaging-Nova Paper and Packaging Hellas SA), Pak Holdings (MEL SA), Polisan (Chemicals in the Volos Industrial Area ), Ziraat Bank (Turkish state bank in Greece) and Suoz Energy (photovoltaic panel technology).
Also, the president of the Greek-Turkish Chamber of Northern Greece, Dimitris Symeonidis, has stated at the beginning of 2024 that Turkish business groups are “tracking” the market of Eastern Macedonia, with the aim of making investments of several million euros, for the production of electricity from gas, in cooperation with Greek partners and that there is an advanced stage of negotiations with two groups in Turkey, for equal investments, amounting to approximately 100 million euros each, in the energy sector.
In the meantime, inbound tourism to our country from Turkey moved upwards in 2023, with 658,575 arrivals in Greece in 2023 compared to 567,819 in 2022.