HRADF privatisation program adds annually €1 billion to the Greek GDP

IOBE study records the macroeconomic and socio-economic effects from the utilization of the private property of the Greek State

The privatisation program, implemented by the Hellenic Republic Asset Development Fund (HRDF) has had a strong positive impact on the Greek economy, with clear social benefits during a particularly difficult period for the country, according to the study “Macroeconomic and socio-economic impact of the privatisation programme of the Hellenic Republic” conducted by the Foundation for Economic and Industrial Research (IOBE).

The study was presented today in an online event by the General Manager of IOBE, Mr Nikos Vettas and executives of the Foundation, in the presence of the Executive Chairman of HRADF Mr Aris Xenofos and the Managing Director of the Fund, Mr Riccardo Lambiris. The Minister of Finance, Mr Christos Staikouras, prefaced the presentation.

For the overall programme, it is estimated that privatisation boosted the country’s GDP by around €1 bn a year on average over the period 2011-2019. Over the same period, the average impact on employment was close to 20,000 full-time jobs.

A significant part of the impact of the privatisation came from the investment made throughout the economy. According to IOBE study, it is estimated that around €5.6 billion of fixed investments made in the country between 2011 and the second quarter of 2019 can be attributed to the privatisation programme. It follows that every €1 of initial privatisation proceeds corresponds to an average of €1,02 fixed investments in the economy.

For more information, refer to the attached document.