Cause and Effect in European Politics and Law

3.1 bn euro less investments in Bulgaria for this year

Adelina Marini, November 23, 2009

The foreign capital flow to Bulgaria has been 5.5 bn euro for the last 1 year until September, the latest data for last week of Industry Watch shows. For the same period of last year the foreign investments were 8.7 bn euro. The direct foreign investments were a little less 3.3 bn euro which is a 56% drop compared to a year earlier. Industry Watch commented that for now "the reduction of investments can be blamed on the general investment climate around the world. But if this trend is to continue next year, at least part of the blame would be thrown on the internal economic policy".

The economists also say that the import has dropped with 24% for a year. One of the reasons for this drop is the deflation - the fall of the prices of goods on international markets for raw materials. Another reason is the shrinking of the material volume of import - mainly metals and other basic raw materials. The The market that is less touched by the crisis is the one for fast circulated goods which, according to the import data for Bulgaria, is even growing this year.