The foreign direct investments[1] (FDI) in the non-financial sector as of 31.12.2023 amounted to 32 566 million euro at current prices.
The largest volume of the foreign direct investments was in Industry sector - 13 527 million euro. Next by FDI volume was Service sector (Wholesale and retail trade; repair of motor vehicles and motorcycles; Transport, communication and services; Accommodation and food service activities) - 7 793 million euro.
In the sector Information and communication are made 1.5 percentage points more foreign direct investments compared to the previous year, and in the Construction sector, they decrease by 0.1 percentage points.
The expenditure on acquisition of tangible fixed assets[2] in 2023 in all sectors of the economy amounted to 33 586 million BGN at current prices.
The largest volume of investments in tangible fixed assets was in the sector of Industry - 9 053 million BGN, followed by Service sector (Wholesale and retail trade; repair of motor vehicles and motorcycles; Transport, communication and services; Accommodation and food service activities) with 7 749 million BGN.
In the structure of expenditure on acquisition of tangible fixed assets, an increase was observed in the investments made in the industrial sector, as their relative share increased by 1.0 percentage points compared to 2022 and a decrease in the Service sector (Wholesale and retail trade; repair of motor vehicles and motorcycles; Transport, communication and services; Accommodation and food service activities) by 2.1 percentage points.
During the reporting year, the structure of expenditure on acquisition of tangible fixed assets by kind was changed. The relative share of investments for buildings and construction equipment increased by 2.1 percentage points compared to the previous year and reached 36.8%. Investments for machines, production equipment and apparatus also increased by 0.3 percentage points, forming respectively 28.4% of the total volume of investments in of expenditure on acquisition of tangible fixed assets. At the same time, a decrease was observed in the purchase of land and other expenses by 1.2 percentage points and reached 7.1 and 14.0%, respectively, while there was no change in the case of means of transport compared to the previous year.
[1] Foreign direct investment is an investment, which includes a long-term relationship, referring to a significant degree of influence of a resident of a foreign economy (foreign direct investor) on the management of an enterprise - resident of the Bulgarian economy (investment enterprise). Direct investment comprises not only the initial transaction establishing the relationship between the investor and the enterprise but also all subsequent transactions between them.
The volume of the foreign direct investment in the investment enterprise is defined as a sum:
• Of the foreign share in the equity capital of the enterprise;
• Plus the amount of the unpaid part of long and short-term loans and trade credits granted by the foreign investor to the investment enterprise as of 31.12. of the surveyed year;
• Minus the amount of unpaid part of the long and short-term loans and trade credits granted by the investment enterprise to the foreign investor as of 31.12. of the surveyed year.
[2] The expenditure on acquisition of tangible fixed assets during the period under review includes the actual costs: land purchase and building construction, construction equipment and mechanisms through order and produced by own account, for delivery and installation of tangible fixed assets, for machinery, equipment and means of transport, for geological and hydrological prospecting, for research and design related to construction and other expenditure, connected with acquiring tangible fixed assets. The current maintenance cost of existing tangible fixed assets is not included in the volume of expenditure on acquisition of tangible fixed assets.
