Businesses project 20% drop in investments in industry in 2011
Bulgarian businesses active in the industry sector project a 20 per cent annual decline in investments this year, according to the results of an investment business survey conducted by the National Statistical Institute (NSI) among manufacturers in the second half of October.Firms that took part in the survey contribute 90 per cent of the annual turnover of the sector.Businesses expect that the largest share of investments will be channelled into energy and sewerage-related sectors (44 per cent), followed by sectors that produce intermediate goods (27.3 per cent) and food (10.9 per cent).Investments in industry are seen to rise by 17.4 per cent in 2012 compared to the current year. About 43 per cent of the respondents do not plan to earmark funds for purchases of long-term assets in 2012.Domestic firms project that mechanisation and automation of existing production processes, as well as introduction of new production technologies, will attract the largest portion of investments next year, 34.6 per cent. Investments in production capacity are seen to account for 27.9 per cent of the total, while investment in replacement of existing equipment are projected at 24.4 per cent.Nearly 27 per cent of the participants in the survey are reluctant to assess how expectations for production demand and profits could impact investment decisions. (Source: The Sofia Echo)