Foreign investment in Bulgaria
Although there are still some new arrivals, Bulgaria’s ability to attract substantial amounts of foreign direct investment (FDI) is not going as well as it should.
In 2007 foreign organizations invested ?9 billion in the country. In 2008, the figure fell to ?6 billion. In 2009 it was ?3 billion. In 2010 it was down to ?1 billion. And in the first quarter of 2011 FDI was actually negative, with a net ?62m outflow.
The case for investing here is compelling: Bulgaria is a member of the EU, with a well-managed budget, corporate tax at only 10% (lowest in the EU), and a highly skilled workforce.
Last year there was a trickle of good successes – notably Lufthansa Technik's expansion at Sofia Airport, and Coca Cola’s decision to set up in Sofia a regional back office for financial and human resources, which will employ 200.
But the larger FDI trend is not healthy enough. We are anxious to see the government putting more resource into attracting new investors.