German-Bulgarian Chamber of Industry and Commerce presented a survey "The business environment in Bulgaria"
German-Bulgarian Chamber of Industry and Commerce (GBCIC) organized a press conference on April 29th, which presented the results of a survey "The business environment in Bulgaria." This year, GBCIC for the first time presents the results on factors of the business environment in Bulgaria in comparison with the overall results of all German foreign chambers in Central and Eastern Europe.
99 company-members of GBCIC were involved in the 2014 study. 77% of them are small and medium-sized businesses with up to 250 employees, 23% fall into the category of large enterprises.
According to the report, 47% of the surveyed companies assess the current economic situation in Bulgaria as satisfactory. Improvement in the economic situation of their own company in the current year compared to the previous one, is expected by 41% of them, while 6% fear worst results.
Estimates of enterprises in Bulgaria are rather optimistic with 49% of respondents believing that their exports will increase this year (only 5% fear decrease). 31% believe that investment costs in 2014 will increase, while 45% do not expect any change. 14% of respondents believe that they will part with some of the staff in 2014, while 41% anticipate opening new jobs.
To the question "Would you invest again in Bulgaria", 82% of surveyed companies respond positively. The relatively large share of companies would choose Bulgaria as their business destination again reflects in the investment statistics of Bulgarian National Bank: after in 2011 was first reported outflow of German direct investment (EUR -45.7 million), German direct investment in 2013 amounted to EUR 135.5 million. This is 12% of the total foreign direct investment in the country.
For the first time Bulgarian exports exceed the imports from Germany
Last year, Bulgaria's exports to Germany were worth EUR 2.683 billion - more than exports to any other country to which Bulgaria exported goods and services. German import in Bulgaria in 2013 equals to EUR 2.642 billion. According to the Federal Ministry of Economy and Energy, Germany, trade between Bulgaria and Germany in 2013 reached a new record of EUR 5.3 billion (up 11.3% yoy). For the first time Bulgarian exports exceed the imports from Germany. Certain contributions in this regard come by German investors in Bulgaria.
Expectedly large is the satisfaction in the "tax burden" where Bulgaria ranks first, and in the “tax system” (4th position). Low rates of corporation tax and income tax from 10% allow investors to generate capital relatively quickly.
Since 2005, GBCIC has participated each year in the study of the business environment of German Chambers of Central and Eastern Europe. The study clarifies the strengths and problematic countries in the region and is the basis for forecasts on future economic trends. All 16 mixed German Chambers conducted in parallel in February this year the survey with similar questions. Participants in the regional surveys in Central and Eastern Europe are a total of 1435 companies.
Source: German-Bulgarian Chamber of Industry and Commerce (GBCIC)