Bulgaria's FDI dip threefold Jan-Nov 2010

Bulgaria's FDI dip threefold Jan-Nov 2010

Foreign direct investments (FDI) in Bulgaria came in at EUR 895 million for the first eleven months of 2010, thrice less than the volume attracted in the corresponding period of 2009, preliminary central bank data showed on Friday.

In November alone, FDI in the country stood at EUR 50 million, compared with EUR 42 million in the same period a year ago.

The country's economy ministry, which had come up with a forecast for EUR 2 billion in foreign investments for 2010, stated the decrease in investments was due to the lower inflows secured by the real estate, trade and finance sectors.

BNB's figures also showed that the country's trade deficit doubled to EUR 420 million in November, triggered by the considerable growth in imports. The reason behind the trade gap's widening was attributed to the 39% annual surge in imports to EUR 1.86 billion, three times higher than the 11.4% growth rate recorded in October.

According to Hristo Vladimirov, financial analyst with TBI Asset Management, the sharp increase in imports was mainly prompted by the significant jump in exports coupled with other factors such as the rise in fuel prices and single-time expenses like buying new equipment abroad.

"Bulgarian companies are dependent on raw materials. Exports and imports are like interconnected vessels - when exports are on the rise, imports follow suit," he told Dnevnik.

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