The volume of direct foreign investments reached a record high level in 2015, for the first time over the past 6 years. It was to the tune of EUR 1.575 bln. and had never been achieved since 2009. CEO of the InvestBulgaria Agency Stamen Yanev says it is due mostly to the economic and political stability of this country which marked an economic growth of 3 percent in 2015, avoiding any political and social crises and shakes.

Are these billion and a half euros a small or a large sum? Compared to the pre-crisis records of some EUR 9 bln. invested in the construction boom back in 2007, the money doesn’t look that big. These foreign investments also don’t look so impressive with a GDP, exceeding EUR 45 bln. and it seems they cannot push the economy in a significant manner. One way or another, we have a 6-year record scored and if this is the trend, we can only hail it.

The positive influence of direct foreign investments becomes even clearer with the remark on the weakly capitalized Bulgarian economy. This means that local capitals are not enough for any more significant investments and direct foreign investments plus the EU funds remain the only two solutions possible. Bulgaria scored decent results last year in the absorption of the latter with a number of over 90% under the cohesion policy.

There is another really important aspect of direct foreign investments, affecting the sectors and spheres, receiving this fresh money. It is one thing if you invest money into low added value businesses with vague future and unstable market positions. It is another thing if money is invested in high-tech and lucrative productions and sectors. One should add the indirect and cascade effects within such a modern economic scenario, going with the direct one – increased GDP and opening of new jobs. We are talking exactly about record-high DFI over last year. Data says that the most money is invested in engineering, the car industry and high-tech sector, as well as in outsourcing of business processes.

Experts state that the positive trend from last year will be kept over 2016 as well. The InvestBulgaria Agency reports that its teams are currently working on the certifying of 14 new projects. Those will bring new EUR 200 mln. to Bulgaria over the next years with other 3,000 jobs opened. They are talking about the foreign interest shown towards Bulgarian organic farming and food industry, also to medical and spa tourism – and Bulgaria has little competition across Europe in that sphere. This is really important, as the direct foreign investments in this country are above all European in their origin with some hopes that the Chinese will join the group soon in a more active manner – they have already built up the initial car plant in modern Bulgaria.

English version: Zhivko Stanchev