Foreign Direct Investments as of 31.12. and Expenditure on Acquisition of Tangible Fixed Assets - 2024 - preliminary data

1. Foreign direct investments as of 31.12.2024

The foreign direct investments (FDI) in the non-financial sector as of 31.12.2024 amounted to 33 861 million euro at current prices.

The largest volume of foreign direct investment was in the industrial sector - 14 432 million euro, followed by the services sector (Wholesale and retail trade; repair of motor vehicles and motorcycles; Transport, communication and services; Accommodation and food service activities) - 7 785 million euro.

At the same time, a significant change in the structure of FDI compared to the previous year was observed in the relative share of the industrial sector, which increased by 1.4 percentage points, while the services sector and the Professional, scientific, technical; Administration and support service activities sector registered a decrease of 1.2 and 0.7 percentage points, respectively (Figure 1).

Economic activities by section (NACE Rev. 2)

А - Agriculture, forestry and fishing

B, C, D, E - Manufacturing; Mining and quarrying and other industry

F - Construction

G, H, I - Wholesale and retail trade; repair of motor vehicles and motorcycles; Transport, communication and services; Accommodation and food service activities

J - Information and communication

L - Real estate activities

M, N - Professional, scientific, technical; Administration and support service activities

O, P, Q - Public administration, defense, Education, Human health and social work activities

R, S, T, U - Education, human health and social work activities; arts, entertainment and recreation; other activities

2. Expenditure on acquisition of tangible fixed assets in 2024

In 2024, expenditure on acquisition of tangible fixed assets in all sectors of the economy amounted to 37 189 million BGN at current prices.

The largest volume of investments in tangible fixed assets was made in the Industry sector - 9 828 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 7 969 million BGN.

In the structure of expenditure on fixed assets by economic activities, the largest increase was observed in the Information and communication and Construction sectors, with their relative shares increasing by 5.0 and 1.3 percentage points respectively compared to 2023 (Fig. 2)

Economic activities by section (NACE Rev. 2)

А - Agriculture, forestry and fishing

B, C, D, E - Manufacturing; Mining and quarrying and other industry

F - Construction

G, H, I - Wholesale and retail trade; repair of motor vehicles and motorcycles; Transport, communication and services; Accommodation and food service activities

J - Information and communication

K - Financial and insurance activities

L - Real estate activities

M, N - Professional, scientific, technical; Administration and support service activities

O, P, Q - Public administration, defense, Education, Human health and social work activities

R, S, T, U - Other services

In the reporting year 2024, a change was also registered in the structure of expenditure on the acquisition of fixed assets by type. The relative share of investments made in machinery, production equipment and apparatus increased by 3.4 percentage points compared to the previous year, reaching 31.5%. At the same time, a decrease of 1.7 percentage points was observed in the purchase of buildings, construction facilities, and structures, down to 35.2% of the expenditure on fixed assets (Fig. 3).

Methodological notes

Foreign direct investment is an investment, which includes 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.

The expenditure on acquisition of tangible fixed assets during the period under review include 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.

Annex

Table 1

Table 2