Greece takes centre stage as global investors seek sustainable growth

By Richard Griffiths, Anthony Hughes and Rhea Xigaki  

Step off the plane at Athens International Airport this September and you might be surprised to see how the usual throng of late summer tourists has been joined by a cohort of some of the world’s biggest international investors. Greece is starting to be seen as one of the most interesting places to invest in Europe, but changing long-held perceptions is critical.  

For years, Greece has been synonymous with fiscal crisis and austerity. Today, a different narrative is emerging, one of resilience, reform, and renewed investor confidence. Yet, as global capital starts to flow into Athens, the question is: can Greece fully close the perception gap that still shadows its economic story? 

More than 40 global institutions representing over $20 trillion in assets descended on the Greek capital for the Athens International Investor Summit, an invitation only event, where investors saw the launch of the Hellenic Innovation & Infrastructure Fund (HIIF), a new vehicle to attract global capital to power the country’s green and digital transition. 

The Fund was launched by the Prime Minister of Greece, Kyriakos Mitsotakis, in the presence of the Minister of Economy and Finance, Kyriakos Pierrakakis. The initiative will see a deployment of capital directly into projects, co-investing with international and Greek investors, focused on sectors that define the ‘New Greece’: green energy, advanced technology, circular economy, agtech, biotech, and medtech.  

The fact is that Greece is being reappraised. It is now seen as a relatively safe credit risk with its investment grade credit rating restored. Crucially, 15 years after the debt crisis, Greece has regained nearly half of its real GDP losses with GDP growth now exceeding the euro area average. At a time when growth is anaemic in Europe’s traditional economic powerhouses such as France and Germany, the Greek economy is forecast to grow 2.3% this year. The Athens stock market is up 39% this year.  Britain’s FTSE 100 index is up by just 9%, France’s CAC 40 by 7%. It may be why the Economist wrote in September: “The hottest places to invest are on the continent’s periphery.” 

The optimism present at senior levels is not shared by everyone. Talk to taxi drivers if they are feeling any richer and they offer a gloomier prognosis. This divergence between macro-optimism and micro-pessimism underscores the complexity of perception. For international investors, the narrative is one of opportunity; for citizens, it is one of cost pressures and wage stagnation. Bridging this gap is essential for political stability, and by extension, for sustaining investor confidence. 

For now, Greece is looking forward with optimism tempered with realism. Listening to Greece’s political leaders at close quarters last week, the ambitions they shared to summit attendees were there for all to see. Neither are they immune to the challenges. As Kyriakos Pierrakakis told the Wall Street Journal: “We need to mobilise private investment in order to be able to grow the economy… We’re hoping to unleash our full growth potential.” Tapping into high-calibre institutional investors is key. 

The launch of HIIF should make the job much easier for those international investors considering expanding their stakes in Greece as an economic project.  

For Greece, the next phase of growth will depend not only on capital deployment but on the narrative. In an era where capital is mobile and reputation is a currency, closing the perception gap is as critical as closing the investment gap.