FDI in Bulgaria's Non-Financial Sector Down 2.2% in 2011 Y/Y

The largest volume of the foreign investments in Bulgaria in 2011 was made in the industry sector - EUR 8 741 M. File photo

According to preliminary data the foreign direct investments in the non-financial sector in Bulgaria as of December 31 2011, amounted to EUR 21 616 M, which is a 2.2% decrease, compared to 2010.

The flash data was released Thursday by the National Statistics Institute, NSI.

The largest volume of the foreign investments was made in the industry sector - EUR 8 741 M and in the service sector (wholesale and retail trade; repair of motor vehicles and motorcycles; transport, communication and services; accommodation and food service activities) - EUR 4 121 M.

In 2011, these activities formed 59.5% of the total foreign direct investments, as their relative share increased by 3.4 percentage points over the previous year. The foreign direct investments in the construction sector fell by 40%, compared to 2010, and amounted to EUR 775 M.

According to preliminary data, in 2011 the actual expenditure on acquisition of tangible fixed assets in all sectors of the economy amounted to BGN 17 763 M, as was reported an increase of 9.5% compared with the previous year.

The largest volume of investments on tangible fixed assets was invested in the sector of industry - BGN 5 428 M and in the service sector (wholesale and retail trade; repair of motor vehicles and motorcycles; transport, communication and services; accommodation and food service activities) - BGN 3 961 Million. In 2011 these sectors formed 52.9% of total expenditure on fixed assets.

The investment in fixed assets in the construction sector reached BGN 1 147 M, less by 16.2% than 2010.

In 2011, the structure of expenditure on acquisition of tangible fixed assets by kind was changed. The investments made for buildings and construction equipment decreased by 2.1 percentage points and accounted for 45.4% of the total volume of investments on tangible fixed assets for the current year. However, the expenditure for the purchase of land increased by 1.8 percentage points and the costs incurred for the acquisition of means of transport - by 1.0 percentage points, which formed 8.5% and 9.9% respectively of total investments of tangible fixed assets.

Foreign direct investment is an investment, which includes long-term relationship, referring to a significant degree of influence of a resident of a foreign economy (foreign direct investor) on the management of an enterprise - resident of the Bulgarian economy (investment enterprise). Direct investment comprises not only the initial transaction establishing the relationship between the investor and the enterprise but also all subsequent transactions between them.

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