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BNB raiseаd the data for attracted foreign direct investments in 2012 and 2013

September 17, 2014

 

Bulgarian National Bank (BNB) published revised data for the flow of foreign direct investments (FDI) in 2012 and 2013. For both years, the volume attracted investments has increased. In the revision of March 17, 2014 FDI inflow for 2013 amounts to 1 092.4 million euro and 1 070.3 million euro for 2012 respectively. In the latest revision from September 15, the data for the two years changed to 1141.7 million euros for 2012 and 1156.7 million euros for 2013 respectively. The growth of attracted investments in 2013 compared with the flow for 2012 is 1.3%.

 

In March 2015 BNB will make its annual revisions of FDI data for 2013 and 2014.

 

Bank revised data for the flow of foreign direct investment under the ECB Timetable for Exchange of Balance of Payments, International Investment Position and Reserve Assets Statistics within the European System of Central Banks. Adjustments usually result in increased volumes.

 

According to the BNB data for the inflow of foreign direct investment published on September 15, 2014, in July reinvested profit in January-July 2014 is estimated at 93.8 million euros. This is significantly higher than the reported 51 million euros for the same period of 2013. What must be kept in mind when analyzing such data is that currenty the data for 2013 and 2014 include only estimates of reinvested profit sector "Banks". The data for the "nonfinancial corporations" sector for 2013 will be published in the January 2015 report and the respective data for 2014 – in the January 2016 report.

 

The total volume of foreign investments in Bulgaria in July 2014 amounted to 74 million euros. According to the revised data for the same month of the previous year, the total volume is 246, 4 million euros. Only after data revision for July 2014 a comparison between the two months would be possible.

 

For the period from the beginning of the year until the end of July foreign investments amounted to 825.3 million euros or 2% of GDP, according to the Central bank data. This is 22 million euro more than the respective sums for the period from January to July 2013, if we compare the unrevised data. A few days ago, however, the Bank revised the amount of investment for the period January - July 2013. It increased to 1070.8 million euros.

 

The main part of the FDI this year is the so–called “Other capital”. In this category, the Bulgarian National Bank puts intercompany loans provided by foreign companies to their subsidiaries in Bulgaria. Since the beginning of the year the total volume is 623.5 million euros, which is with 31.1 million euros more than the previous month. For the period January-July 2013 investment in other capital were 164.1 million euro, according to unrevised BNB data.

 

Equity investments since the beginning of 2014 amount to 107.9 million euros compared with 560.4 million euros unrevised data for the same period last year.

 

The information of the BNB for FDI by industry is on a quarterly and annual basis. According to preliminary data for the period January - June 2014 the largest flow of FDI is in manufacturing (more than 295 million euros or 39.3 percent of the total flow for the period). In the second place is investment in "Real estate, renting and business activities" (with a share 25.9%), followed by "Transport, storage and communications" (with a share of 16.8%).

 

The Netherlands retained the first position among the countries investing in Bulgaria in 2014. For the period January - July 2014 the FDI inflows from there amounted to 368.4 million Euros.

The data show that the money which migrants send to their relatives in the country grows. In July the amount was 75.5 million euros, and in the same month of the previous year the amount was 74 million euros. For the first seven months of the year Bulgarians abroad have sent a total of 519.9 million euros to our country.

 

According to the preliminary data, the FDI of Bulgarians and companies abroad for the period January - July 2014 amounted to 195.3 million EUR in comparison to 198.2 million euros in January - July 2013. In July 2014 the FDI increased by 7.8 million euros.