Greek-German investments in fixed capital formation reach 3.7 billion euros in the period 2018 – 2022, while the total turnover increase to 10 billion euros in 2022 and companies employ around 26,000 workers.
The above is the result of the latest, fourth consecutive, study by the Foundation for Economic and Industrial Research (IOBE), which it carried out on behalf of Greek-German Chamber of Commerce and Industrywhich was presented as part of the Chamber’s 100th anniversary event.
Contribution to GDP and employment
According to the study, based on IOBE multipliers, for every 1 euro of GDP produced by Greek-German companies – members of the ChamberGreece’s GDP increases by a total of 1.6 euros and respectively, in terms of employment, each job in community business supports 2.4 positions in the entire Greek economy, with the total contribution estimated at 75,000 jobs.
Net direct investments are set at 7.7 billion euros in 2022. It is worth noting that, according to data from the study, in imports, Germany returned to first place in 2023, from second place in 2022, a first place that it held consistently between 2015 and 2021, while it occupies third place in the ranking of destinations for Greek exports.
Specifically, the exports of Greek products in Germany reached 3.3 billion euros in 2023, compared to 3.4 billion euros in 2022 and 2.8 billion euros in 2021.
The value of imports of goods from Germany to Greece was formed in 2023 at 8.4 billion euros, against also 8.4 billion euros in 2022 and 6.9 billion euros in 2021. Thus, the trade deficit in goods in bilateral trade between Greece and Germany increased slightly to 5.1 billion from 4.9 billion in 2022.
Germany’s share of total imports from Greece stood at 10.4% in 2023, from 9.2% in 2022 and 11% in 2021, while the share of Greece’s exports to Germany increased in 2023 to 6.6%, from 6.4% in 2022 and 7.3% in 2021.
Consumer goods
By product category, Greek exports to Germany mainly concern consumer goods, with this specific category accounting for 55.3% of total exports to Germany. In terms of imports, capital goods and industrial inputs occupy the main category, with a share of 50.4%. In services, Greece records a perennial surplus in bilateral trade (3 billion euros in 2022).
O Germany’s revenues rose in 2023 to a historically high level of €4.9 billionagainst 4.3 billion euros in 2022. Finally, there is a special presence of Germany in the Greek economy in terms of direct investments.
O new direct investment from Germany were formed in 948 million euros in 2022while Germany’s net real estate investments in Greece are particularly dynamic, with around EUR 160 million of net investment in 2022 and a total of over EUR 500 million since 2016.
It should be noted that the study prepared by IOBE on behalf of the German Hellenic Chamber was presented in a panel discussion attended by Minister of State Makis Voridis and Member of the Board of Directors and Director of Research at the German Institute for Economic Research (DIW) in Berlin, Professor of Economics at the University of Potsdam, Alexandros Kritikos, while the main findings were commented on by the Head of the Department of Macroeconomic Analysis and Policy at IOBE, Svetoslav Danchev.