News

Font size: A A A

Bulgarian business to scale up investments in 2011

Friday, Nov 19, 2010

Bulgarian industrial plants expect to register a rise in investments in 2011 for the first time since 2006, according to a survey by the National Statistical Institute (NSI), carried out in October.

The companies anticipate an annual growth of 18 per cent in attracted funds in 2011, the bulk of which will go to utilities.

For the current year, industry representatives forecast a 26 per cent decline in investments, yet more optimistic than the 37 per cent slump expected in 2009.

Most of the funds in 2011, or a third of the total, are likely to be channelled into the improvement of existing products and the launch of new ones.

Another part will be used for replacing outdated equipment and further funds will be poured into expanding plants' capacities, equalling 25 per cent each of the anticipated investments.

A scanty 14 per cent of the earmarked money will be injected into environmental protection, security and other purposes.

Overall, business sentiment is buoyant, but still the majority of entrepreneurs are cautious in their outlooks on the impact of demand and earnings on their investments in modernisation.

Source: thesofiaecho.com