Bulgaria has witnessed a substantial increase in net foreign direct investment (FDI) inflows, surging to approximately €2.06 billion ($2.21 billion) during the period spanning January to July this year, as reported by the central bank on Tuesday. This figure marks a significant ascent from the €1.55 billion recorded in the corresponding period of 2022.
According to the Bulgarian National Bank (BNB), which released its monthly report, this elevated net FDI inflow for the first seven months of 2023, computed in accordance with the directional principle, translates to 2.2% of Bulgaria’s projected gross domestic product (GDP) for the current year. By way of comparison, the net FDI inflow in the same period during the previous year accounted for 1.8% of the 2022 GDP.
Breaking down the data for the month of July, the report reveals that the net FDI inflow for that month stood at €137.8 million, slightly below the €145.5 million recorded in July of the preceding year.
Delving deeper into the origins of this notable foreign investment, it becomes evident that the Netherlands led the charge with the largest net FDI inflow into Bulgaria during the review period, amounting to €556.9 million. Belgium followed closely with €248.6 million, and Germany secured its position with €216.1 million. In contrast, Switzerland witnessed the greatest net outflows, with an amount totalling €43 million, closely trailed by Italy with €35.8 million.
This pronounced upswing in foreign direct investment demonstrates the continued appeal of Bulgaria as a destination for global capital. The surge in FDI inflows aligns with the nation’s aspiration to bolster its economic growth and development.
These encouraging figures suggest a vote of confidence from international investors in Bulgaria’s economic stability and potential, despite the challenges posed by the global economic landscape. As the country continues to attract foreign investments, its role as a pivotal player in the region’s economic arena becomes increasingly apparent, setting a promising trajectory for Bulgaria’s economic future.