In 2004 Bulgaria attracted 25% of the FDI for the last 13 years.
The official statistical data for the period 1992-2004 shows that the stock volume of the foreign direct investments (FDI) in Bulgaria amounts to USD 10.145 bln. The investments in green field and expansion projects for the 13-years period account for 69% of the total FDI in Bulgaria, while the share of FDI in the privatization is 31%. In the period 2001-2004 Bulgaria has attracted a record FDI volume of USD 6.3 bln., which represents a 62% share. FDI in privatization for the same period account for 23% of the total volume of investments, and the green field investments are 73%.
The statistical records show a volume of USD 2.5 bln. (EUR 2 bln.) invested in Bulgaria in 2004. The 2004 investments volume accounts for 25% of the total of FDI for the period 1992-2004. The green field investments represent 52% of the 2004 FDI, and the investments in privatization account for the remaining 48%, revealing the trend for continuous larger share of the investments in green field in comparison to the investments in privatization.
Analyzing the data, the following significant conclusion is to be made – 2004 is unprecedented in terms of the attracted in Bulgaria FDI, as for their volume accounts for 25% of the total of investments made in the last 13 years, 37% of the privatization investments for the total period and 19% of the total of green field investments.
The preliminary statistical data shows that the FDI in 2004 represent 9.2% of the national GDP, reaching the highest level compared to the other countries in Central and Eastern Europe (FDI are 5.6% of GDP in Romania and 4.4% of GDP in the Czech Republic). Furthermore in 2004 Bulgaria has attracted 10% of the total of foreign direct investments in CEE region, as well as 30% share of the FDI on the Balkans.
In 2004 the most attractive sector for FDI – the energy sector – shows growth of 38% share of the total volume of investments in Bulgaria. The second and the third sectors in terms of attractiveness for FDI are the telecommunication sector (16% share) and the sphere of trade and services (15% share).
Regarding the countries, which are the leading investors in Bulgaria, the statistics shows that the traditional leader Greece is replaced by Austria. The Austrian companies have invested a total of USD 1.67 bln. in the period 1992-2004. The second biggest investor for the 13-years period is Greece (USD 1.03 bln.), followed by the Netherlands (USD 928 mln.), Germany (USD 917 mln.) and Italy (USD 715 mln.). In 2004 the top 3 of the leading investors by countries is headed by Austria, the Netherlands and the Czech Republic.
The list of the top 15 leading investors is headed by 5 brand new companies which are globally renowned players, acting as a proof for the strong business attractiveness of Bulgaria. The first 5 on the list are CEZ (Czech Republic), EVN (Austria), Viva Ventures (Austria), E.ON (Germany) and Sisecam (Turkey).
The presence of such benchmark investors in Bulgaria undoubtedly confirms that our country has won its place on the investment map. The leading investors recognize Bulgaria as an attractive investment destination, because of the predictable and stable economic environment, guaranteed by the NATO membership and the scheduled full EU membership of Bulgaria.
Source: IBA
