## Greece's Investment Gap

_IMF Working Papers, January 28, 2022_

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**Canonical URL:** [Greece's Investment Gap](https://www.imf.org/en/publications/wp/issues/2022/01/28/greece-s-investment-gap-512324)

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- [Markdown version](/en/publications/wp/issues/2022/01/28/greece-s-investment-gap-512324/index.md)
- [Structured JSON version](/en/publications/wp/issues/2022/01/28/greece-s-investment-gap-512324/index.json)
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## Bibliographic details
- Authors: Shiqing Hua, Marina Mendes Tavares
- Published: January 28, 2022
- Series: IMF Working Papers

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### 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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## Content in this bundle

- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2022/01/28/greece-s-investment-gap-512324_