kathimerini.gr
Greek Businesses Lag in Investment Despite Optimistic Revenue Outlook
Grant Thornton's annual survey reveals that despite 60% of Greek businesses expecting increased revenue and profits, only 40% plan to increase investments in machinery and 30% in buildings, hindering the country's economic growth and highlighting a need for structural changes to foster investment.
- How do the findings on investment in sustainability and innovation relate to the overall investment climate and competitiveness of Greek businesses?
- The insufficient investment undermines Greece's potential growth, as noted by Eurobank CEO Fokion Karaviás who urged for faster, more decisive investment, alongside reforms and a shift towards an investment-driven economy. Achieving the Draghi report's goals requires a 9% annual investment increase, demanding political commitment and prioritizing investment over consumption tax cuts.
- What are the primary obstacles preventing Greek businesses from translating their optimistic revenue projections into substantial investments, and what are the immediate economic consequences?
- Greek businesses are lagging in investment, with only 40% planning increased investment in machinery and 30% in buildings, despite 60% expecting higher revenue and profits. This hesitancy to invest, despite optimism, is a major concern, highlighting a disconnect between expectations and action.
- What long-term structural changes are necessary to foster a culture of investment in Greece, and how can the government incentivize businesses to overcome their investment hesitancy and improve competitiveness?
- The reluctance to invest may stem from factors beyond optimism, such as access to financing or risk aversion. The low percentage of firms using ESG initiatives for competitive advantage (20%) suggests a missed opportunity to attract investors and improve profitability. Continued low investment in innovation further hinders long-term competitiveness and growth. The increase in production costs expected by 60% of businesses in 2025, with 20% anticipating a greater than 10% increase, will likely further curb investment if not addressed proactively.
Cognitive Concepts
Framing Bias
The article frames the issue as a critical need for increased investment in Greece, highlighting the insufficient investment rates and the disconnect between business optimism and investment actions. The use of quotes from the Eurobank CEO reinforces this framing. The headline (though not provided) likely also contributes to this framing.
Language Bias
The language used is largely neutral and factual, reporting statistics and quotes. However, phrases like "alarmingly low," while descriptive, lean slightly towards dramatic rather than purely objective reporting. The repeated emphasis on the lack of investment could be perceived as negatively framing the situation.
Bias by Omission
The article focuses primarily on the findings of the Grant Thornton survey and the comments of Fokion Karavidas, CEO of Eurobank. While it mentions the EU's potential 6% growth rate, it doesn't delve into the specific policies or conditions required to achieve this. The analysis also omits discussion of potential obstacles to increased investment beyond the mentioned lack of government support for investment over consumption tax reductions. There's limited exploration of alternative perspectives on the investment climate in Greece. This omission might limit a reader's understanding of the complexities and challenges of fostering investment.
False Dichotomy
The article presents a false dichotomy by emphasizing the choice between reducing consumption taxes or incentivizing investments. This simplifies the complex interplay of fiscal policy options and neglects other potential approaches to economic growth and investment stimulation.
Sustainable Development Goals
The article highlights a significant investment gap in Greece, hindering economic growth and impacting job creation. Low investment in machinery, buildings, and innovation, coupled with insufficient competitive compensation and incentives for employees, directly affects decent work and economic growth. The lack of investment in innovation further limits potential for improved productivity and economic expansion.