Foreign direct investment in Bulgaria have increased
Posted by Active Consult Ltd. - Accounting & Tax на 15/10/2014
The Foreign direct investments in Bulgaria for January – August 2014 are EUR 1221.4 million (3% of GDP), according to preliminary data of the Bulgarian National Bank (BNB). During the same period in 2013 the revised data for the FDI was EUR 1173.9 million (2.9% of GDP).
Thus BNB reported an increase of 4% or 47.5 million euro. However, if the data today is compared with the unrevised data released in October 2013, the growth rate is significantly higher. The reported direct investments are 772.5 million euro, or 1.9 % of GDP.
BNB revised the data in accordance with the calendar of the ECB and in most cases the revisions change the numbers in a positive direction.
Only in August 2014 in the Bulgarian economy have been invested 235.3 million euro, which is a strong increase, compared to the revised data for August 2013 – 103.1 million euro. The unrevised investment volume for August 2013 was – 34.2 million euro.
The biggest investor in the period from January to August this year is Netherlands with 402.5 million euro.
„The increased investment inflow is a result of well planned strategy and excellent teamwork of the institutions attracting investment. Despite the huge efforts, made by the employees of InvestBulgaria Agency, without the support of ambassadors, commercial attaches, the government and the president, the result would be different. This is evidence that joint efforts always pays off“, commented Svetoslav Mladenov, Executive Director of InvestBulgaria Agency.
The Reinvested earnings for January-August 2014 is estimated at 106.6 million euro, compared to 62.1 million euro for the same period in 2013. The investments in equity decreased in the period from January to August 2014 and reached 223.7 million euro. If they are compared to the revised data for the same period last year, they are 456.5 million euro lesser.
The investments of foreigners in real estate amounts 78.9 million euro, compared to 102.7 million euro for January-August 2013 (revised data).
Foreign direct investment abroad in January – August 2014 amounts 227.8 million euro, compared to 114.9 million euro for January – August 2013. In August 2014 they have increased by 31.9 million euro, compared to an increase of 13.6 million euro in August 2013.
With the reported investments till August 2014 the annual forecast of InvestBulgaria Agency is surpassed. The overall balance of payments is positive. In August, the positive balance amounts 179.6 million euro, compared to negative overall balance of 129.2 million euro for August 2013. The sum of the balance for the first eight months of 2014 was 750.9 million euro compared to EUR -397 million euro for 2013.