Foreign Direct Investments in Bulgaria Plummet Jan 2013 Y/Y

It’s a dead economy, the economy is stagnated and the consumers have no spending capabilities.
Why invest in dead small market stagnated economy…

This is a copy of text from cnbc on consumer sentiment in US where the government is trying to implement some cuts. You can see the stagnation effect on the economy and on the confidence of the American consumer.
( we have the same issue in the Bulgarian economy, people are scared and hopeless….) The Bulgarian government needs to spend more and stimulate the economy!




“U.S. consumer sentiment tumbled to its lowest since December 2011 in early March, hit by dissatisfaction with government economic policies and as fewer Americans expected to see improvements in growth or the labor market, a survey released on Friday showed.
The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment dropped to 71.8 from 77.6 in February, short of expectations for 78.
Across-the-board government spending cuts of $85 billion went into effect at the beginning of the month after U.S. lawmakers failed to come to a new deal.
A record 34 percent of respondents made unfavorable references to government economic policies, beating January's prior record of 31 percent.
"The frustrations expressed by consumers essentially involve how little consideration has been given to how the government's inability to reach a compromise affects people's economic situation," survey director Richard Curtin said in a statement.
The barometer of current economic conditions fell to 87.5 from 89, while the gauge of consumer expectations tumbled to 61.7 from 70.2, its weakest since November 2011.
Thirty percent of consumers expected the pace of economic growth would worsen in the coming year, up from 22 percent the previous month, while 38 percent expected the unemployment rate to increase, up from 27 percent.
Still, the damage to buying plans has so far been minimal, the survey found. The index of buying conditions for durable goods eased just slightly to 139 from 140.
The one-year inflation expectation held steady at 3.3 percent and the five-to-10-year inflation outlook edged down to 2.9 percent from 3 percent. “
http://www.cnbc.com/id/100557749

This FDI thing is a pitiful joke. Monetary type people take great stock in misleading numbers like FDI, GDP, GNP, etc., with a cavalier disregard for the underlying realities. Almost all of the "Foreign Direct Investment" in Bulgaria 2005-2008 was risk capital involved in speculative real estate investments, and other speculative investments to exploit consumption, like malls. Very little was "real" investment, the kind that builds factories, trains and employs workers, makes products, puts them in boxes, exports them out of the country to foreign buyers. That is real "foreign direct investment". But, you know that, don't you George Zheliazkov? Want to buy a mall? I can get one for you, cheap. Maybe you'd also like some office space?