An investment – vote of confidence in the reindustrialization of Greece

Greece, today, is in a strong economic cycle, which is confirmed by the reports and forecasts of all major institutions, international investment banks and rating houses. Leaving behind the decade of the crisis and the painful management of the pandemic, especially for public finances, the country is moving on to a next chapter of reconstruction, jumping to gain lost time. While, in recent years, indicators of foreign direct investment have shown that Greece is no longer an unstable country, unsuitable for investment, the debate is now geared to the kind of investment it attracts. While the acquisition of the investment tier, the reduction in lending costs for the State, banks and private enterprises are expected to increase Foreign Direct Investment, the country’s competitiveness is declining. According to the latest data from the Institute for Management Development (IMD), Greece retreated to 49th place between 64 countries, from the 47th to the previous respective exhibition. The cause of this slowdown is largely attributed to international instability, but another reason we cannot overlook is the sectoral distribution of investments. According to the TTE, the largest concentration of XAUs focuses on the tertiary sector (86%) and concerns financial and insurance activities, telecommunications, tourism, real estate, stimulating trade, construction and storage and transport activities. In short, to the services! The percentage of the primary sector is relatively insignificant (2%), while the secondary sector compared to the country’s capabilities and needs are small (15%) and mainly concerns pharmaceutical, beverage-smoking, chemical and to a lesser extent electronic products and computers. Against this background comes a very important investment in the heavy industry of Greece, which can be a springboard for attracting more investment in strategic sectors. For the first time in the history of the country’s defence industry, a consortium is created between the public and private sectors, with the international technological and defensive CSG group investing in the restart of the Greek Defence Systems plant in Lavrio. This is a strategic investment, co-financed by the European Union and the CSG group, aimed at making Greece the second country in Europe to produce TNT. Revitalisation of the country’s defence industry, Greece’s participation in the production of critical defence material such as high-caliber ammunition 155mm and the state-owned company EAS access to top technology, high know-how and global distribution network of the 3rd largest defence group in Europe make this synergy an investment-station. The success of this project is expected to give a strong signal to the international investment community, that Greece is again an attractive destination for investments involving heavy industrial production.