INVESTMENTS IN BULGARIA ARE EXPECTED TO RISE BY 15% THIS YEAR

Foreign capital is flowing mainly into the energy sector, telecommunications and manufacturing

"We expect foreign direct investments in Bulgaria to rise between 10% and 15% year-on-year in 2012," said Borislav Stefanov, Chief Executive of InvestBulgaria Agency. Foreign direct investments for the first four months of 2011 amounted to about €60 mln, official data showed, compared to €400 mln for the same period this year. Inward capital flow totaled €1.3 bn ($1.8 bn) last year, or 0.15% of overall worldwide investments of $1.5 trln, said Stefanov during an event to present the conclusions and recommendations of the World Investment Report 2012.

The latest addition of the report, compiled by the United Nations Conference on Trade and Development on an annual basis, reveals investment activity in 2011. Globally, Bulgaria ranks between 50th and 60th place based on total amount of foreign direct investments, according to the report. Money put in non-financial sectors were in the range of €1-1.5 bn over the past few years, with a steady volume as a whole.

Foreign investments are focused in the processing industry. Investments in telecommunications, energy and manufacturing account for 70-80% of the total, with a worldwide average of 40-50%. Nearly 90% of overall foreign direct investments in Bulgaria come from EU countries. The Netherlands and Cyprus are among the top 10 sources of external financing for Bulgaria but more on paper than in real terms.