Securing financing for investment in Greece is crucial in order to meet future challenges. Investment has declined dramatically during the global financial and debt crisis and has not recovered significantly since. In 2020, investment in Greece stood at close to 12% of GDP whereas the Euro area average was almost 22% of GDP.
Greece obviously needs an investment shock to augment the eroded capital stock, increase productivity and overcome output hysteresis. Investment has recovered sharply in the first three quarters of 2021, supported by a significant increase in bank credit to nonfinancial companies since the start of the pandemic.