Sofia, December 15, 2014/ Independent Balkan News Agency
By Clive Leviev-Sawyer of the Sofia Globe
Foreign direct investment in Bulgaria in the first 10 months of 2014 stood at 804.9 million euro, the equivalent of two per cent of the gross domestic product (GDP), the Bulgarian National Bank (BNB) said on December 15. In the same period of 2013, FDI was 1.31 billion euro (3.2 per cent of GDP), but the original amount reported by BNB last year was 1.05 billion euro, which was revised upward later.
The FDI statistics showed a marked decline in October, given that the central bank data showed investment for the first nine months of 2014 was 1.1 billion euro.
The reason was the sharp fall in investment inflows recorded as the change in the net liabilities of Bulgarian companies towards their foreign investor owners. Such financial flows include financial loans, suppliers’ credits and debt securities, according to BNB’s methodology.
This type of FDI stood at 721.8 million euro for January-September, but was down to 258.9 million euro in January-October (compared to 401.1 million euro in the first 10 months of 2013).
Investment in equity, including in the real estate sector, stood at 403.8 million euro in the first 10 months of the year (compared to 826 million euro in January-October 2013) and re-invested earnings accounted for 142.1 million euro (versus 83.3 million euro in the first 10 months of last year). Receipts from real estate investments by foreign companies totalled 106 million euro, compared to 129.4 million euro during the same period of last year.
By country, the largest direct investment in Bulgaria in January-October came from the Netherlands (334.4 million euro) and Austria (208.1 million euro). The largest net negative flows for the period were towards Germany (an outflow of 214.7 million euro).
According to preliminary figures, Bulgarian investment abroad stood at 141.9 million euro in the first 10 months of this year, compared to 135.2 million euro in the same period of last year, BNB said.