FDI in Bulgaria shows 55.9M euro outflow in January-May 2019

FDI in Bulgaria shows 55.9M euro outflow in January-May 2019

Foreign direct investment in Bulgaria in the first four months of 2019 recorded an outflow of 55.9 million euro, the equivalent of 0.1 per cent of the gross domestic product (GDP), statistics from the Bulgarian National Bank (BNB) showed on July 19.

In the same period of 2018, FDI showed a net inflow of 91.2 million euro, but the original amount reported by BNB last year was 219.9 million euro, which was revised downward later.

Investment in equity, including in the real estate sector, recorded a net outflow of 539.2 million euro (compared to a net outflow of 246.1 million euro in the first five months of 2018) and and re-invested earnings recorded an outflow of 173.3 million euro (versus an inflow of 81.5 million euro a year earlier).

Revenue from real estate investments by foreign companies totalled 2.5 million euro, compared to 10.3 million euro during the same period of 2018.

The central bank data showed 656.6 million euro in investment inflows as debt instruments, recorded as the change in the net liabilities of Bulgarian companies towards their foreign investor owners, compared to 255.8 million euro in the first five months of last year. Such financial flows include financial loans, suppliers’ credits and debt securities, BNB said.

By country, the largest direct investment in Bulgaria in January-May 2019 came from the Netherlands (206.s million euro), Germany (92.3 million euro) and Hungary (43 million euro). Notable net outflows were recorded towards Italy(-188.6 million euro).

According to preliminary figures, Bulgarian investment abroad increased by 164.4 million euro in the first five months of 2019, compared to 96 million euro in the same period of last year, BNB said./ibna