Sharp Decline in Foreign Direct Investment in Bulgaria

Foreign direct investment (FDI) in Bulgaria recorded a net positive flow of 1.24 billion euros for the first nine months of 2024, equating to 1.2% of the country's gross domestic product (GDP), according to data from the Bulgarian National Bank (BNB). Despite the positive figure, this represents a significant decline of 63.3% compared to the same period in 2023.

In September 2024 alone, the net FDI flow was 314.6 million euros, marking a 13.6% increase compared to September 2023. However, share capital—which includes cash, in-kind contributions, and real estate transactions—was positive at 44.5 million euros for January to September 2024, down 374.7 million from the same period in 2023.

The net flow of foreign investments in Bulgarian real estate for the first nine months of 2024 remained negative at 5.8 million euros, a slight improvement compared to a negative 13.2 million euros in the same period in 2023. Meanwhile, reinvested earnings—representing foreign investors' share in companies' profits or losses—amounted to 1.17 billion euros, a sharp drop from 2.88 billion in January to September 2023.

Under the sub-item Debt Instruments, which monitors changes in liabilities between foreign-participation companies and their foreign investors, the net flow was positive at 28.9 million euros, compared to 83.5 million in the corresponding period of the previous year.

The largest net positive FDI flows during the nine months were from Austria (399.1 million euros), the Netherlands (350.9 million euros), and Greece (221.4 million euros). In contrast, the most significant net negative flows were toward Luxembourg (268.3 million) and the United States (254.3 million).