Industry, Energy Investments 50% of Bulgaria's 2010 FDI
The structure of foreign investments in Bulgaria has changed in 2010, according to Borislav Stefanov, executive director of the InvestBulgaria Agency.
Speaking at a closing conference devoted to the investment climate in Northwest Bulgaria, Stefanov said that investors seeking quick profit have moved out of the country but the stable and reliable entrepreneurs have remained in the context of the effects of the global economic crisis.
"2010 was a very important year for investments in Bulgaria because it brought about a shift in focus on the part of investors and a change in the structure of investments. Following a few years of huge investments, when it somehow went unnoticed that they were channeled almost exclusively into finance, trade and real estate, in 2010 the share of these sectors dropped below 30% of the total FDI inflows for the first time in 10 years," the InvestBulgaria Agency head explained.
He did point out, however, that investments in industry and energy in 2010 exceeded 50% of the total FDI, which had not happened for 5 or 6 years.
"This trend shows that investors who are after quick profits may have left the country, freeing up space for investors in more sustainable sectors. The task all of us are facing now consists of further increasing precisely this type of investment, especially in a region like Northwest Bulgaria, which could be achieved through better marketing and improved cooperation between the central and the local authorities and a more efficient administration on all levels", Stefanov commented.
In 2010, FDIs in Bulgaria totaled EUR 1.6 B, down by only 30% , according to revised data of the central bank, which denies gloomier estimates for a 50-60% slump.
2007 was a record year for Bulgaria with a total of EUR 9 B of FDI, followed by EUR 6 B of FDI in 2008. The global economic and financial crisis led to what was considered a collapse of FDI in Bulgaria in 2009, as the foreign investments barely reached EUR 3 B. /Source: Sofia News Agency/