Recent Searches
Despite a decade of low growth rates, and the obstacles created by external challenges such as geopolitical instability and the energy crisis, notable value creation is currently taking place in Greece. This confirms the crucial role of both the private and the public sector in promoting economic growth. This is the conclusion drawn by the study conducted by the EY-Parthenon teams in Greece, the global strategy consulting arm of EY specialized exclusively in corporate strategy matters, titled “Accelerating value creation to realize strategic growth”.
For EY-P, value creation is viewed as a dynamic process that generates both short-term and long-term, tangible and intangible benefits, thereby enhancing the collective value and prosperity of entities within key growth sectors.
The study compiles and analyzes data and findings related to the creation of long-term value from recent EY surveys in Greece, specifically the EY Attractiveness Survey Greece 2023, the EY Long-Term Value and Corporate Governance Survey Greece 2023, and the EY Transformation Survey Greece 2023, as well as the global EY Private Equity Pulse Survey Q4 2023.
The study also analyzes Greece's performance in terms of real GDP, inflation, foreign direct investment, fixed capital formation, and the utilization of Recovery and Resilience Facility funds, based on data from Oxford Economics, Bloomberg, Eurostat, and the OECD. The study finds that, despite the delayed economic restart following the financial crisis, Greece's performance in key indicators surpasses both the EU and most OECD member countries.
Specifically, the Greek economy proved to be more resilient to the impacts of the COVID-19 pandemic, recording consistently higher growth rates from 2021 onwards. Foreign direct investment as a percentage of GDP, after a significant decline during the crisis, has been steadily increasing since 2016, while fixed capital formation has also been growing at a faster pace than both the EU and the OECD since 2020.
In this environment, the internationalization of the Greek economy, the business transformation, the modernization of corporate governance, and the optimization of processes leading to economies of scale and cost efficiency, as well as the introduction of innovative products and services, are strongly contributing to the organic growth of businesses.
Significant opportunities for mergers and acquisitions have also emerged, reflected in the compound growth rate in M&A activity by 7% over the past five years, with a focus on energy, financial services, consumer goods, industrials, and transportation.
Finally, the role of the public sector is also pivotal, through strategic investments in critical infrastructure, comprehensive digitalization initiatives, and streamlining bureaucratic procedures
Seven case studies that demonstrate how businesses in Greece can create value are also featured in the study. These case studies involve strategic initiatives in transportation and logistics, energy, food and beverage, health and life sciences, banking, hospitality, and real estate. Specifically, the study analyzes how these companies utilized the five value creation drivers, the actions and initiatives they developed, and the economic and long-term value they generated.
After a decade of low growth rates, and despite the obstacles posed by external challenges such as geopolitical instability and the energy crisis, significant value creation is currently taking place in Greece. The five pillars analyzed in the study can serve as drivers of value creation, while seven case studies illustrate how these drivers can be leveraged to generate long-term economic value.
