Greece's Investment Gap
IMF Working Papers, January 28, 2022
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- Greece's Investment Gap
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Bibliographic details
- Authors: Shiqing Hua, Marina Mendes Tavares
- Published: January 28, 2022
- Series: IMF Working Papers
Summary
- Greece’s investment rate plunged following the Sovereign Debt Crisis (SDC) and remained one of the lowest in the world in 2019.
- The paper explores recent investment dynamics and compares them against estimated benchmarks.
- The authors conclude that Greece has been under-investing since the SDC, with private investment notably lagging behind.
Key findings
- The estimated investment gap in 2019 ranges from 1.6–8 percent of GDP.
- Private investment has notably lagged public investment since the SDC.
- Structural impediments have constrained corporate investment.
- Business cycle and balance sheet developments have held back household investment.
Drivers of the investment shortfall
- Structural impediments affecting corporate sector investment.
- Business cycle developments reducing aggregate demand for investment.
- Household balance sheet constraints limiting household investment decisions.
Policy recommendations
- Implement structural reforms to remove bottlenecks to corporate investment.
- Improve the efficiency of public investment.
- Adopt measures to boost household investment.
Publication metadata (from page content)
- Authors: Shiqing Hua, Marina Mendes Tavares
- Date: January 28, 2022
- Series: IMF Working Papers, Working Paper No. 2022/013
- Pages: 28
- ISBN: 9798400201257
- ISSN: 1018-5941
Greece's Investment Gap, IMF Working Papers, January 28, 2022.
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- Working Paper