By Petros Stefanis

Greece is becoming an increasingly attractive investment destination in the technology sector, according to a recent EY study.

The analysts noted an improvement in the qualitative composition of investments, highlighting that the emphasis is shifting towards knowledge-intensive activities and high-value-added sectors that can contribute to transforming the Greek economy, ensuring greater long-term benefits, such as technology transfer and better-paid, highly skilled jobs.

Notably, the digital economy sector, which includes IT, artificial intelligence, technology, telecommunications, and media, ranked second for the first time among the sectors expected to drive Greece's growth. It accounted for 17% of the first reports and 22% overall.

In particular, investments in the software and IT services sector represent 26% of the total, compared to 15% across Europe, while 14% of Foreign Direct Investment was directed to activities related to Internet Data Centers. According to EY analysts, data centers create both direct and indirect jobs, boost the development of related sectors, such as telecommunications and energy, real estate and security, support other emerging technologies and can attract other foreign investments in the technology sector.

Another positive development is the rise in investment in research and development, which increased to 6% from 2% last year, although it remains below the European average of 9%. As the data showed, corporate headquarters and education and training are absent from the FDI mix this year.

Greece recorded a positive trend in knowledge-intensive foreign direct investment. In contrast, the software and IT services sector in the rest of Europe, which had been among the top FDI recipients in recent years, recorded a 17% decline. This was mainly due to rising costs, sluggish demand, and global uncertainty, especially affecting investments from American companies.

Regarding the performance of the Greek startup ecosystem, EY noted that the startup ecosystem is showing remarkable growth, demonstrating resilience, extroversion and investment attractiveness in critical high-tech sectors.

Specifically, the value of the ecosystem and active startups has grown from $8 billion in 2022 to $12 billion in 2024. It now includes over 3,000 startups, with more than $555 million invested in over 90 companies in 2024, representing a 15% increase from 2023.