Small Businesses Face Toughest Challenges Ahead of Bulgaria’s Euro Adoption in 2026
Small and medium-sized enterprises in Bulgaria are expected to face the greatest difficulties once the euro becomes the country’s official currency in 202
Photo: Stella Ivanova
Preliminary data shows a significant decline in foreign direct investments in Bulgaria for the first half of 2024. The net flow of direct investments in the country from January to June 2024 was positive, totaling 387.8 million euros, or 0.4% of GDP. This represents a substantial decrease of 1.547 billion euros, or 80%, compared to the same period in 2023, which saw a positive flow of 1.935 billion euros, equating to 2.1% of GDP.
In June 2024, Bulgaria experienced a negative net flow of 148.5 million euros in direct investments, a stark contrast to the positive flow of 300.3 million euros recorded in June 2023, as reported by the Bulgarian National Bank.
The primary sources of positive net direct investment flows into Bulgaria for the first half of 2024 were the Netherlands, contributing 222.1 million euros, Austria with 160.8 million euros, and Cyprus at 147.5 million euros. On the other hand, the largest negative net flows were from Russia, totaling 190.2 million euros, and Poland, with 80.3 million euros.
The preliminary data also indicates that Bulgarian investments abroad amounted to a net flow of 256.6 million euros, or 0.3% of GDP, for January to June 2024. This is down from 367.9 million euros, or 0.4% of GDP, for the same period in 2023. In June 2024, the net flow of investments abroad was positive at 41.6 million euros, compared to a positive flow of 104.1 million euros in June 2023.
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