site.btaGerman-Bulgarian Chamber Survey Highlights Bulgaria's Reinvestment Potential

Almost 90% of firms showed interest in reinvesting in Bulgaria, a minor drop from 92% in the prior year, the head of the German-Bulgarian Chamber of Industry and Commerce (AHK Bulgarien), Sonja Miekley, said on Thursday. She presented recent survey results, showing noticeable increase in German investments, with top global provider of non-ferrous metals Aurubis Bulgaria and retail chain Kaufland Bulgaria leading the way.

The survey was conducted from February 19 to March 15, 2024. The survey period preceded failed negotiations for a cabinet reshuffle, a situation that would have likely influenced the assessments of the chamber members participating in the poll.

The Bulgaria poll was part of a larger survey by the German Chambers of Commerce involving countries from Central and Eastern Europe. In this year's survey, 75% of Bulgarian respondents were SMEs capped at 249 employees, while larger corporations accounted for 25%.

Bulgaria's attractiveness as an investment destination in 2024 was due to its EU membership, low labour costs, and beneficial tax system. Internet service providers offering easy access to high-speed broadband and mobile Internet was another highlight.

According to the 81 AHK Bulgarien representatives participating in the survey,  among the biggest risks and challenges for the Bulgarian economy are political and social instability, unskilled workforce, low standards of academic and vocational education, corruption, and crime.

The survey highlighted the urgent need for skilled professionals across various business sectors to drive economic advancement.

Some one in five respondents (22%) assessed economic conditions as "good", and 52% find them "adequate". When asked about the economic outlook for 2024 compared to 2023, 24% were optimistic and 48% expect no change.

Katya Georgieva of AHK Bulgarien highlighted that Europe is experiencing a transformation due to the military conflict and businesses adapting to post-COVID conditions. She noted that the country is shifting its image from a low-cost destination to a hub for manufacturing and development of products with high added value.

Asked by BTA if staff transfers is a way to deal with labour shortages, Sonja Miekley said that businesses are considering both repatriation and internationalization. She pointed out that German companies attract representatives of various nationalities, not just Germans or Bulgarians, reflecting a trend towards greater internationalization. She suggested that the notion of "a German company" should be reconsidered.

Germany continues to be Bulgaria's most important trade partner by far, and a key market for Bulgarian products and services, based on data from AHK Bulgarien.