The positive prospects for the Greek economy and the reasons why it should be invested in were analyzed by Prime Minister Kyriakos Mitsotakis in front of the leaders of Japan’s national organization of enterprises and groups Keidanren in Tokyo. The Prime Minister, accompanied by a Greek delegation, was received by Director Toshiaki Higashihara (Chairman and CEO of Hitachi) and spoke with members of Keidanren.

“This is the first visit by a Greek prime minister to Japan since 2005. The main purpose of my visit to Japan and the main purpose of our meetings is to note that we have managed to overcome this crisis, that the Greek economy is currently developing dynamically and is on a high growth trajectory. That we have managed to implement a number of very important structural reforms that have made Greece a much more interesting and attractive place for foreign capital to invest. If you look at our economic performance over the last three years, I don’t think many will bet in 2019 that Greece will be one of the fastest growing economies in the Eurozone, as we have indeed been for the past two years.” Kyriakos said Mitsotakis said in a statement.

Greece managed to turn the page

The Prime Minister mentioned the new Greece, which has come out of the crisis and is on the path of development as a result of the reforms carried out by the government and the policy of reducing taxes while maintaining fiscal balance.

“If you look at our public finances, we have definitely put years of financial crisis behind us. We are seeing the fastest reduction in debt as a percentage of GDP of any European country. We are projected to have a primary surplus in 2023. And despite the fact that we will have elections in the coming months – they are scheduled sometime in April or May – we remain very disciplined in terms of managing our fiscal policy, ”said Kyriakos. Mitsotakis.

Speaking about the improvement in the investment environment, the Prime Minister stressed: “Comparing 34 OECD countries, the Economist Intelligence Unit (EIU) recorded the largest improvement in the business environment among 81 countries between 2019 and 2022. And in this analysis, 91 economic indicators were taken into account.”

The Prime Minister also explained the positive performance and prospects of the Greek economy by the increase in foreign direct investment in the country: “As a result of all these important changes, we have seen a significant increase in foreign direct investment in the country. We had a record-breaking 2021. We had a record 2022. Microsoft, Google, Amazon – they all gave Greece significant funds for the construction of data centers. They are also considering investing in our tech ecosystem.”

Consider Greece as a place to invest

The Prime Minister invited Japanese businessmen to invest in Greece, explaining the reasons. “I think you should take a close look at what is happening in Greece. And if you are interested in investing in our region, consider Greece as a place to invest. I believe it is a combination of three things: a prudent fiscal policy that has lowered taxes but without compromising the country’s fiscal discipline, significant reforms on all fronts, and the fact that we have cleaned up our banking system,” said Kyriakos Mitsotakis.

“The Greek economy has become much more outward oriented than ten years ago. If you look at exports as a percentage of GDP, then today it already exceeds 40%,” the prime minister added.

Referring to the digital transformation that has taken place in Greece, he noted: “We have invested heavily in making citizens and businesses interactive with the Greek administration. In 2022, we had over a billion digital transactions with governments: citizens and businesses transacted with the government through our website www.gov.gr.”

By 2023, we will reach investment grade, and this will open up new opportunities for Japanese funds.

The Prime Minister stressed that the recent upgrade of the country’s credit rating by rating agencies and the fact that it is one notch higher than the investment rating opens up new investment opportunities.

“Before the financial crisis in Greece, Japanese companies were buying almost $10 billion worth of Greek assets a year. As soon as the crisis broke out, and we lost our investment rating, it practically vanished. So we went from 10 billion to zero. Now we are literally one step away from the investment level. Fitch upgraded our rating two days ago to a step below investment grade. And I fully expect that we will reach investment grade during 2023, and this will open up new opportunities for the reallocation of Japanese funds to Greece in the coming years as well,” he said.

Speaking about the spring elections, the prime minister said: “I think the rating agencies are still looking at the political situation. They are waiting for the elections. I think we are in a very good position to win them. This is what all polls show. If the result is as we estimate it, and we continue our work, I think that the transition to the investment stage will take several months.”

Greece has a very important role to play in the new energy architecture that is taking shape in Europe.

Kyriakos Mitsotakis also highlighted the role that Greece can play in the emerging new energy architecture, on the one hand, through the development of infrastructure that enhances its role as an energy transmission hub and makes it an energy security provider for the wider region. , and on the other hand, conducting their own research on hydrocarbons. At the same time, he stressed that Greece is investing in the further penetration of renewable energy into its energy mix.

“We are investing heavily in regasification facilities in Greece, especially in northern Greece. And we strive to be an energy exporter and ensure energy security, at least for our Balkan neighbors. For the first time, we are actively exploring possible natural gas deposits southwest of Crete. The study is led by ExxonMobil and the first results are very, very promising.

But at the same time, we have a very, very important role to play in the new renewable energy landscape that is developing in Europe. Now, few people know that Greece is one of the ten largest producers of electricity from renewable sources,” he said.

Concluding his speech, the Prime Minister noted the mutual benefits that further strengthening of bilateral cooperation will bring.

“I believe that we will gain a lot by strengthening this cooperation in many areas. So I hope that during my stay in Tokyo, I will have the opportunity to present this case study on how Greece is changing, convince you to look more systematically at what is happening in the country, and hopefully mobilize more funds from this part of the world to invest to our country.

Some Japanese companies are already operating in Greece. But I am sure that much more can be done. And I think that the more you learn about what is happening in Greece, and the more you kind of let go of some of the stereotypes that accompanied you during the very difficult years of the economic crisis, the more I think you will be of interest to us. the story of our economic transformation,” Kyriakos Mitsotakis concluded in his statement.

The meeting was also attended by Minister of Public and Digital Administration Kyriakos Pierrakakis, Deputy Foreign Minister responsible for Economic Diplomacy and External Relations Kostas Fragoyannis, Head of the Prime Minister’s Economic Department Alexis Patelis, Deputy Representative of the Government of Aristotelius. Peloni, Secretary General for International Financial Relations and President of Enterprise Greece Vicky Loizou, Secretary General for Energy and Minerals Alexandra Sdukou, Greek Ambassador to Japan Dimitris Karamitsos-Tsiras, Enterprise Greece CEO Marinos Yiannopoulos, CEO of the Export Credit Insurance Organization Grigoris Stamatopoulos , President of the Board of Directors of the Association of Enterprises and Industry Dimitris Papaleksopoulos and Chairman of the Administrative Committee of the Athens Chamber of Commerce and Industry Sofia Kounenaki Ephraimoglou.

Source: RES