Reporter, Lisa Preuveneers, says this is GOOD NEWS for investors. Attend a briefing or contact us to find out why
- Attended by HE Dr Lanchezar Matev Ambassador of the Republic of Bulgaria
- HE Steve Williams British Ambassador to Bulgaria
- Liliya Gelemerova, senior associate, The Risk Advisory Group plc
- John Davie, director international business development, Vector Management Ltd – real estate project managers in Bulgaria for ten years
Like many other countries after they entered the EU , it is predicted that Bulgaria, after a period of adjustment, will enjoy the kind of economic boom that Ireland experienced. Bulgaria has enjoyed 7 years of economic growth and has had a budget surplus for last 4 years. At 6.7%, Bulgaria’s growth is stronger growth than rest of the EU (5.6%). And Bulgarian banks are doing well; they are considered to be stable, predictable and reliable as they are not exposed to US sub prime market so.
All the speakers spoke frankly about the challenges facing the new EU member state; they outlined the short and longer term risks and challenges. Briefly these can be summed up as
- Economic reforms; need to speed up, enhance the flexibility of the labour market, narrow skills gap, strengthen R&D and support innovation
- Judicial reforms; reduce organised crime & corruption , there needs to be a more open business climate
- Demographics; population declining – like Ireland; this is likely to increase again. Urbanisation and emigration may lead to possible labour shortages
- Inflation; at 12% needs to come down. This is driving wages up and fuelling strong domestic demand
- Transport & infrastructure, currently not good enough to allow Bulgaria to benefit from its very good geographical location.
The good news is
Unemployment is down and there is a strong domestic demand for goods & services.
Recently introduced fiscal reforms will help counter some of the above. For example; the new low tax rates – personal & corporation tax down to 10% - will help reduce the black economy... and provide an incentive for further foreign investment.
EU grants are available and there are plenty of investment opportunities in Bulgaria; and not just in real estate... but retail, logistics, infrastructure… attend a briefing or contact us to find out more. |
