Bulgarian business investments reduces by 15.2% yoy in 2016

Business investments Bulgaria

Business investments BulgariaBulgarian business investments reduces by 15.2% yoy according to survey of the National Statistic Institute. The largest share in investments during the year comes from the production of intermediate goods (37.7%), followed by energy and water-related sectors (24.2%) and production of non-durable consumer goods (20.7%).

According to the business survey, the forecasts for 2017 are that Bulgarian business investments will reduce by another 8.4% yoy. About 34% from the enterprises do not plan costs for acquisition of fixed assets during the next year. The decrease in investments is serious problem for the growing Bulgarian economy, which has forecasts for growth of about 3% during the next two years.

According to the forecasts for 2017, the largest share of investments is expected to be in increase of production capacity (35.2%) and replacement of worn-out equipment (26.2%). Also the Bulgarian business plan to invest in mechanization or automation of existing production processes and the introduction of new production technologies (23.6%) and environmental protection, measures security and others (15.0%).

The National Statistic Institute’s survey comes a few days after the European Commission and International Monetary Fund raised their forecasts for the economic growth of the country to 3% in 2016 and 2.9% in 2017. However, the business continue to strugle from high corruption and bureaucracy.

Bulgarian is the poorest country in the European Union, which is hardly to recover from the Communism influence of Russia.

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