The increase in the gross fixed capital formation is a critical bet for Greece in its effort to cover part of the large investment gap created during the years of the economic crisis.
Interventions to improve the business climate are aiming in this direction, however, enhancing the businesses’ liquidity through the banking system, the NSRF as well as the Recovery Fund also play a key role.
The Hellenic Statistical Authority (ELSTAT) said on Wednesday that GDP rose 2.1% in the first quarter of the year, thanks partly to the increase in the gross fixed capital formation by 8.2% compared with the corresponding quarter of 2022. In particular, it amounted to 7.038 billion euros, compared to 6.506 billion euros in the same period the previous year.
The increase cannot be described as “impressive” however it should be taken into account that liquidity in the economy will be transformed into investments over the next period. It is worth mentioning that the NSRF and the Recovery Fund provide liquidity of more than 60 billion euros.
Based on the latest available data (31/5), 425 investment projects with a total budget of 15.71 billion euros have been submitted to the loan arm of the Recovery Fund.
It should be noted that the investment plans that have been submitted concern different sectors of the economy, such as industry, retail trade, power generation investments – RES, telecommunications, tourism and services.
