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Bulgaria foreign investments down by 12,8%

Date: 02.09.2008

The direct foreign investments in Bulgaria are down by 7,5% during the second trimester of 2008 compared with the same period of 2007 and by 12,8% compared with the first half of the previous year.

The data has been announced Friday by the Bulgarian National Statistics Institute.

The net amount of the direct foreign investments for the first trimester of 2008 is EUR 115,562 M while their net amount for the first half of the current year is EUR 180,670.

During the second trimester of 2008, the most investments have been made in the construction area, however, investment in real estate register a decrease.

According to experts, direct foreign investments are generally down in the beginning of each year and the reduction is usually compensated by the year's end.

In 2008 however, the negative trend could deepen due to the global finance crisis and the decrease in bank crediting.

In 2007, the net amount of direct foreign investments in the country reached the record EUR 5,2 B. 60% of them were invested in the area of tourism and real estate. Currently many British investors have withdrawn from the market leading to beliefs that the forecast for a 10% increase of the direct foreign investments in 2008 might not become reality.

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