Foreign Direct Investments in Bulgaria Increased in 2019

The foreign direct investments in Bulgaria continue to increase in 2019. According to data of the Bulgarian National Bank, between January and October this year FDIs amounted to EUR 953.1 million, which was EUR 554 million more as compared to the same period last year. Biggest volume of net direct investments was registered from the Netherlands (EUR 422 million), followed by Germany (EUR 233.7 million) and Great Britain (168.2 million).

At first glance, the growth of the foreign direct investments in the recent years has not been that impressive. However, we must note that now the foreign capital is mainly allotted to industrial production and sectors with high added value which create high employment and ensure high economic growth, unlike in the years before the world economic crisis (2007-2008) when FDIs skyrocketed, but most of this money was invested in real estate properties in that period. Despite the fact that FDIs have been increasing steadily over the recent years, the Bulgarian authorities have the difficult task to overcome the deep regional imbalances in the distribution of foreign capital.

South Bulgaria and the large economic zones near Sofia, Plovdiv, Haskovo and Dimigtrovgrad continue to attract most of the foreign investments. Except for several large-scale investments in the automotive sector in Vratsa (Teklas and MD Elektronik), Lovech (Voss Automotiv) and Pleven (Leoni), investments in the other regions in North Bulgaria are still insufficient. According to Premier Borissov, this would change completely after the construction of Hemus motorway and some of the major roads in this part of the country.  Undoubtedly, good infrastructure is essential for investors.

Meanwhile, the deteriorated demographic structure in some...