Foreign Investment Plummets in Bulgaria

2010-08-17

Foreign direct investment in Bulgaria has dropped by 78 per cent for the first six months of the year, the Bulgarian National Bank, BNB, has announced. Investment, FDI, reached €358.5 million, just one per cent of the country’s gross domestic product, GDP, while in the same period last year Sofia attracted €1.6 billion or 4.8 per cent of GDP, information from BNB showed. The Netherlands, Russia and the United States are among the countries which have invested the most in Bulgaria for the first half of the year. The three brought €933 million, €103 million and €47 million to the Bulgarian capital, respectively. For a long time Bulgaria, whose economy is highly dependable on foreign capital, used to be the foreign investment champion in the region. However, in recent years the country has seen a drastic fall of investment flow due to the current economic crisis. In 2009, Sofia managed to accumulate €2.8 billion, while a year earlier the figure was almost twice as high, reaching €6.5 billion. Bulgaria, which has been hit hard by the financial downturn, is still in recession. According to the National Statistics Institute’s data, the country’s economy shrank by a real 1.5 per cent year-on-year in the second quarter of 2010.