Significantly higher compared to previous years, but also compared to other eurozone countries, the cost of borrowing for Greek businesses, with the burden even greater given the continuous increase in lending rates, including those announced yesterday by the European Central Bank. According to the monthly industry bulletin produced by the Foundation for Economic and Industrial Research (IOBE) in collaboration with the Greek Manufacturing – Industry Development Council Initiative, the average cost of new borrowing for Greek businesses rose by 5.1% in January, a six-year maximum. Based on the above, the deviation from the average cost of borrowing of enterprises in the Eurozone and the “South” of the Eurozone amounted to 143 (up from 125 in December) and 78 (up from 88) basis points, respectively.

However, the higher cost of borrowing has not prevented Greek companies from investing. In the fourth quarter of 2022, fixed investment grew by 14.8% compared to the corresponding quarter of 2021, compared to an increase of 8.3% in the third quarter. This increase was mainly due to the strengthening of investment in construction (+44.5% from +15.9%), while the strengthening of other investments (transport equipment, agricultural machinery, copyright, etc.) was less namely, by 27.1%. On the other hand, a 4.3% decline was recorded in investment in mechanical equipment as well as investment in process equipment. 2022, a year of significant expansion of the trade deficit, was characterized by a significant increase in the trade deficit, especially for industrial goods, which confirms the high dependence of Greece on agricultural imports.

In December 2022, exports of industrial goods amounted to 2.7 billion euros, an increase of 29.6% compared to December 2021.