Bulgaria attracted a mere BGN 183.8 M in foreign direct investments in the first seven months of 2011 compared to BGN 776 M the same period last year, central bank data showed.
The most noticeable withdrawal of capitals is performed by companies in Germany, Great Britain and Japan. The top investors in Bulgaria now are the Netherlands, Cyprus and Russia.
Analysts have attributed the negative trend to the crisis fallout - the uncertainty reigning in the euro area and the European Union as a whole, the government's conflicting messages, deteriorating public finances and outstanding payments on intercompany loans.
They have expressed serious doubts that the forecast of 3.6% growth projected by the Bulgarian government in its 2011 budget is realistic.
"If this target is achieved, it will be only thanks to exports and rising international prices. But this does not fix the problems of our economy," said Bozhidar Danev, head of the Bulgarian Industrial Association (BIA).
According to him the drastic decline in FDIs will lead to even bigger problems in the labor market and thus to further contraction of consumption.
"Foreign capital will not come to us until we significantly improve the business environment and introduce the e-government. Such things can not be fixed with good PR only", said Danev./Sofia News Agency/