Net foreign investment in Bulgaria would be four times lower in 2024 than in the previous year, according to preliminary data from the Bulgarian National Bank (BNB).
Foreign direct investment (FDI) in the EU country totalled €697.8 million at the end of August, down 77 per cent year-on-year. Last year’s investment amounted to €3.103 billion.
The most significant investments in Bulgaria in 2024 will come from the Netherlands, Austria and Greece. Foreign investors were slowly withdrawing from the Bulgarian property market, with a net negative investment inflow of 3.1 million euros, the BNB reported.
The Bulgarian property market is currently fully dependent on domestic demand. Meanwhile, the country’s industrial production has fallen by almost 10 per cent year-on-year. However, Bulgaria’s economy is keeping afloat due to domestic consumption and EU grants.
FDI to Bulgaria is declining partly due to the ongoing political crisis. For more than three and a half years, short-lived parliaments have been making legislative changes affecting the country’s economy.
