Bulgarian Investments Abroad - More Than Foreign Investments in the Country

BNB statistics for the first seven months of 2018 show that the investments of Bulgarian entrepreneurs abroad are more than the attracted foreign capital in the Bulgarian economy.

From the beginning of the year to the end of July, the volume of Bulgarian capital invested abroad was EUR 278.9 million. For the same period, foreign direct investments in Bulgaria amounted to EUR 219.9 million. Meanwhile, an analysis by the Bulgarian Industrial Association, made in August, found that foreign investments in Bulgaria by the middle of the year amount to BGN 246 million.  The Netherlands remains the No. 1 investor in Bulgaria with EUR 221.4 million invested this year, followed by Russia with EUR 158 million, and Germany with EUR 80.5 million.

This week, Prime Minister Boyko Borisov commented that Bulgaria is currently investing in better quality. However, the numbers are telling a different story and the lower percentage of investments is visible.

Compared to January-July 2017, foreign investment fell by 63%. The foreign capital invested in the Bulgarian economy this year is only in the form of loans given by the companies to their subsidiaries in Bulgaria. Lending funds, which will have to be reimbursed, are worth EUR 264 million. Investment in private equity, considered to be an indicator of long-term interests, has a negative sign. The reinvested earnings indicator is also negative, amounting to EUR 18 million.

Purchases of real estate by non-residents in the first seven months also fell as the BNB reported EUR 4.2 million compared to EUR 10.5 million a year earlier. Whereas, in the first half of the year, Bulgarians invested in the United Arab Emirates - EUR 63 million, followed by the US and Marshall Islands – EUR 47.7 million and EUR 43.2 million respectively, Britain - EUR 26.7 million and Germany - EUR 22.8 million.

Petya Petrova

Petya Petrova is a journalist, believer, and traveler.

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