site.btaForeign Direct Investment Target for 2014 Already Exceeded by August

Foreign Direct Investment
Target for 2014 Already
Exceeded by August


Sofia, October 14 (BTA) - Foreign direct investment (FDI) in the
Bulgarian economy between January and August 2014 exceeded the
projection of the InvestBulgaria Agency (IBA) for the whole
year, IBA said on Tuesday. The amount attracted in the
eight-month period was 1,221.4 million euro, which accounted for
3 per cent of the country's gross domestic product (GDP),
according to figures published by the Bulgarian National Bank
(the central bank) earlier in the day and analyzed by IBA.

This compares with 1,173.9 million euro in FDI (2.9 per cent of
GDP) between January and August 2013, according to revised data.
The level implies an increase by 4 per cent, or 47.5 million
euro, year on year.

But if the January-August 2014 data is compared with non-revised
data for January-August 2013, the increase is much larger, IBA
said. The non-revised FDI level in January-August 2013 was 772.5
million euro (1.9 per cent of GDP). FDI numbers are revised by
BNB in accordance with the calendar of the European Central Bank
and, more often than not, the revised level is higher than the
one estimated earlier.

In August 2014, monthly FDI in Bulgaria amounted to 235.3
million euro, far above the revised level for August 2013, which
was 103.1 million euro. The non-revised amount in August 2013
was 34.2 million euro.

The Netherlands was the number one source country of FDI in the
Bulgarian economy between January and August 2014, having
contributed 402.5 million euro.

Reinvested earnings, as an FDI component, totalled 106.6 million
euro in the reporting eight-month period, compared with 62.1
million euro a year earlier. Another FDI component, share
capital, dropped to 223.7 million euro. Measured against revised
data, the decrease was by 456.5 million euro.

Foreign persons invested 78.9 million euro in real estate in
Bulgaria between January and August 2014, compared with 102.7
million euro between January and August 2013 (revised data).

Bulgarian direct investment abroad (BDIA) between January and
August 2014 totalled 227.8 million euro, compared with 114.9
million euro between January and August 2013. In August 2014
alone, BDIA increased by 31.9 million euro, compared with an
increase by 13.6 million euro in August 2013.

Bulgaria's balance of payments was in positive territory in
August 2014, at plus 179.6 million euro, compared with minus
129.2 million euro in August 2013. Between January and August
2014, the balance was plus 750.9 million euro, compared with
minus 397 million euro a year earlier. PK/VE