Greece: Investments Reach 15% Of GDP

by THEFUTURE.TEAM

February 7, 2025

Investments in Greece grew by 2.2% annually from January to September 2024, as reported by Alpha Bank’s economic bulletin. This increase is moderate compared to the 2025 budget estimate of 6.7% growth for the entire year.

Despite the moderate increase in 2024, investments have consistently contributed positively to Greece’s GDP in recent years, now accounting for approximately 15% of GDP (since the end of 2023). This is notably lower than the average 22% of GDP in the eurozone.

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The bank’s economists estimate that the government’s forecasted 8.4% increase in investments in 2025 could push the share of investments to 17.5% of GDP, narrowing the “investment gap” compared to the eurozone forecast of 20.8%.

Key Numbers:

Annual investment growth (January-September 2024): 2.2%.
Investments as a percentage of GDP: 15% in Greece, compared to 22% in the eurozone.
Projected public investments (2025-2028): €64.2 billion.
Foreign direct investment: Exceeds €5 billion annually on average in the last five years.

Key Sectors:

Industry: Investments in the industry have been growing continuously since 2018, reaching €5.4 billion in 2023.
Public Administration & Defense: Exceeded €5.3 billion in 2023.
Real Estate: Investments reached €5 billion in 2023.

More than half of total investments are concentrated in these three sectors, while sectors such as Transport & Storage, Education, and Professional Services have seen a decline.

Significant changes have occurred in the composition of investments since the pre-crisis period, when housing represented over 40% of total investments and approximately 10% of GDP. In 2024, it is estimated that housing will represent 14.3% of total investments and 2.3% of GDP.

Public investments are expected to play a crucial role in the medium term, with €64.2 billion projected for the 2025-2028 period. This includes investments from the EU and the Recovery Fund, with €9.8 billion expected from the Recovery Fund in 2025 and €11.6 billion in 2026. Recovery Fund grants are expected to end by mid-2026, although loan disbursements will continue until 2027-2028.

Foreign direct investment has shown promising growth in recent years, with an average of over €5 billion per year (excluding 2020). A recent survey revealed that 50% of respondents plan to expand or develop activities in Greece in the coming year, compared to 30% in 2019.

Greece was ranked 19th among the most attractive EU countries for foreign investment in 2024. This ranking highlights the intensifying competition and underscores the need for further improvements to the country’s investment environment.

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Cyprus Government Surplus Rises To €1.61 Billion In First Nine Months Of 2026

by THEFUTURE.TEAM

November 5, 2026

Cyprus recorded a general government surplus of €1.61 billion in the first nine months of 2026, equal to 4.0% of gross domestic product, as revenue growth outpaced the rise in public spending. Higher receipts from income taxes, social contributions and value-added tax (VAT) drove the improvement, while lower capital expenditure helped restrain spending.

Preliminary figures released Tuesday by the Statistical Service of Cyprus show the surplus rose to €1.17 billion, or 3.0% of GDP, up from € 442.1 million in the same period of 2025.

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Total government revenue increased 6.5% to €12.09 billion, while expenditure rose 2.9% to €10.48 billion.

Key Fiscal Measure	January–September 2025	January–September 2026
Total revenue	€11,353.9 million	€12,091.8 million
Total expenditure	€10,186.2 million	€10,482.1 million
Government surplus	€1,167.6 million	€1,609.7 million
Surplus as a share of GDP	3.0%	4.0%

Income Taxes And VAT Lead Revenue Growth

Taxes on income and wealth made the largest contribution to the increase in revenue. Receipts in this category climbed by €442.2 million, or 15.3%, to €3.34 billion, compared with €2.89 billion a year earlier.

Social contributions rose by €235 million, or 6.6%, to €3.78 billion. Taxes on production and imports increased by €251.5 million, or 7.2%, reaching €3.77 billion.

Net VAT receipts, after refunds, totalled €2.64 billion, up €293.1 million, or 12.5%, from €2.35 billion in the first nine months of 2025.

Some Revenue Streams Decline

Not all revenue categories moved higher. Capital transfers fell by €74.6 million to €96.7 million, while current transfers declined by €71.6 million, or 20.5%, to €278.2 million.

Revenue from services slipped 1.0% to €743.5 million. Interest and dividend receipts dropped by €37 million, or 28.6%, to €92.4 million.

Social Benefits And Personnel Costs Increase

On the expenditure side, social benefits rose by €199.6 million, or 4.9%, to €4.27 billion. Compensation of employees—which includes imputed social contributions and public-sector pensions—increased by €108.3 million, or 3.8%, to €2.99 billion.

Intermediate consumption, covering goods and services used in the delivery of public services, rose by €114.3 million, or 11.0%, to €1.16 billion. Interest payments increased by €8.7 million, or 2.6%, to €340.7 million. Current transfers were up €68.7 million, or 10.6%, at €714.7 million.

Lower Capital Spending Limits Expenditure Growth

The overall increase in spending was tempered by a decline in capital expenditure. Capital-account spending fell by €189.9 million, or 16.9%, to €936.2 million from €1.13 billion in the same period last year.

Investment in fixed capital declined by €94.1 million, or 12.1%, to €686.4 million. Other capital transfers fell by €95.8 million, or 27.7%, to €249.8 million. Subsidies also decreased, dropping by €13.9 million, or 15.5%, to €75.8 million.

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