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A Record 2007 For Foreign Investment In Financial Intermediation

Financial intermediation absorbed 1.741 billion euro in foreign direct investment (FDI) in 2007, up a solid 137 per cent year-on-year, central bank data shows.

The upside came from the capital hikes performed by local banks and insurance companies and the large volume of intercompany credits, said experts.

The biggest chunk of FDI - 37 per cent, was injected into real estate transactions, rental and business services. In nominal terms, it rose 41 per cent year-on-year to 2.158 billion euro.

Construction attracted 12.4 per cent of FDI with 706 million euro in 2007, up from 466.4 million euro a year ago.

Investment in the farming sector posted a whopping 229 per cent year-on-year growth to 50.8 million euro, mainly due to the low base. Farming still accounts for a mere 0.9 per cent of FDI.

Investment in the processing industry and in the production and distribution of electricity, heating, liquefied fuel and water recorded declines of 84 per cent and 64 per cent respectively.

Since these are preliminary figures, experts said they will most likely be revised upwards.

The central bank data shows that the processing industry attracted 128 million euro, down from 804 million in 2006, while power and fuel production attracted 88 million euro, down from 246 million euro in 2006.

Total FDI inflows rose 30.3 per cent to the record-setting 5.687 billion euro in 2007.
 
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