Greece’s economic relationship with the rest of the world deteriorated rather than improved in the first half of 2025, according to new data released by the Bank of Greece on the country’s international investment position at the end of the second quarter.
The figures show that Greece’s net external liabilities increased by €13.4 billion compared with the end of 2024, reaching €338.9 billion. This amount corresponds to roughly 140% of the country’s gross domestic product. In practical terms, Greece owes substantially more to foreign investors and creditors than it is owed abroad, and this imbalance continues to grow.
The international investment position reflects a country’s overall financial exposure to the global economy, comparing the assets held by its residents abroad with the assets owned by non-residents domestically. When foreign liabilities exceed external assets, the net position is negative. A deepening negative position is widely seen as a sign of increased vulnerability to external shocks, including higher global interest rates or renewed international financial instability.
The worsening trend recorded in 2025 was largely driven by higher net liabilities in the so-called “other sectors” of the economy, which include non-financial companies and households. At the same time, the net foreign asset position of other financial institutions declined. Together, these developments suggest increased reliance on foreign funding or stronger foreign investment inflows into Greece without a comparable expansion of Greek investments abroad.
Net external liabilities of the general government also rose, reflecting the country’s still-elevated public debt and its ongoing financing needs. While an improvement in the net position of the Bank of Greece partially offset these pressures, it was not enough to alter the overall picture.
A negative international investment position does not signal an immediate crisis. It does, however, act as a warning indicator. It highlights Greece’s continued dependence on external financing and underlines the importance of strengthening the country’s productive base, expanding exports and attracting investments that generate sustainable economic value. Without progress in these areas, Greece risks accumulating additional external obligations, reducing its economic resilience and limiting its policy flexibility in the years ahead.
