site.bta Industrial Enterprises Expect Decline in Investment for 2016 - Statistics

Industrial Enterprises Expect Decline in Investment for 2016 - Statistics

Sofia, November 11 (BTA) - Entrepreneurs expect 15.2 per cent decline of investments in 2016 compared to 2015, according to the investment survey of the National Statistical Institute for October. The largest relative share of investments is expected in the production of goods for median consumption (37.7 per cent), followed by the energy and water utility sectors (24.2 per cent) and the production of perishable consumer goods (20.7 per cent).

The forecasts for 2017 indicate a decline of investments in industry by 8.4 per cent year-on-year and some 34 per cent of the enterprises do not plan to spend in acquisition of long-term assets.

Once again, median consumption goods form the largest relative share (40.8 per cent), followed by energy and water utility (with 30.4 and 15.8 per cent respectively).

Most of the investments in 2017 are expected to be made in increasing the production capacity - 35.2 per cent of the total volume of investments in industry, followed by 26.2 per cent for replacement of worn out equipment, new technologies (23.6 per cent), environment protection, security and others (15 per cent).

As regards the factors that would influence the decision of managers for investments in 2017, a prevailing positive impact is seen for factors including market demand, availability of financial resources or expected profit, and technical factors. For another group of factors, including government policy, taxation and export conditions, 24 per cent of respondents expect a positive impact, 37.5 per cent don't know and 22.7 per cent see zero impact.