FDI in Bulgaria down 37% Y/Y in H1, 2013

Foreign direct investment (FDI) in Bulgaria fell by 37% to EUR 711.1 Ma rate of  in the period January-June 2013 from a rate of EUR 1134.3 M in January – June 2012, according to preliminary data of the Bulgarian National Bank (BNB).

In June 2013, FDI in Bulgaria amounted to EUR 180.6 M, compared to a rate of EUR 201.1 M in June 2012.

The attracted Equity Capital (acquisition/disposal of shares and equities in cash and contributions in kind by non-residents in/from the capital and reserves of Bulgarian enterprises and receipts/payments from/for real estate deals in the country) in the period January - June 2013 amounted to EUR 536.8 M, up by EUR 110 M from the same period of 2012 (EUR 426.8 M).

The receipts from real estate investments of non-residents amounted to EUR 65.8 M, compared to EUR 124 M attracted in January - June 2012.

The other capital, net (the change in the net liabilities of the direct investment enterprise to the direct investor on financial loans, suppliers' credits and debt securities) was positive, amounting to EUR 125.1 M  in January –June 2013, compared to a positive other capital, net of EUR 656 M in January - June 2012.

Based on preliminary data on profit/loss, the Reinvested Earnings (the share of non-residents in the undistributed earnings/ loss of the enterprise) in January 2013 were estimated at EUR 49.2 M, against EUR 51.6 M in the same period of 2012.

By country, the largest direct investments in Bulgaria in the period January - June 2013 were those of the Netherlands (EUR 336.3 M), Czech (EUR 61.9 M) and Austria (EUR 61.5 M). The largest net negative flows for the period were towards Switzerland (EUR -20.3 M).

By branch, the largest investments in the period January – December 2012 were in the sectors of Transport, storage and communication (EUR 166.5 M), Financial intermediation (EUR 137.9 M) and Wholesale and retail trade and, repair (EUR 94.5 M).

According to preliminary data, in January - June 2013, Direct investment abroad increased by EUR 41.1 M, compared to an increase by EUR 83.4 M in January - June 2012.

In June 2013, Direct investment abroad increased by EUR 7.9 M, compared to an increase by EUR 12.6 M in June 2012.

Adapted from Novinite