HomeIco

Home

 InternalIco

Internal
Deutsch|English
Insights Successfully investing in Bulgaria

Successfully investing in Bulgaria

PrintMailRate-it

​​last updated on 7 June 2024 | reading time approx. 3 minutes

  

​   

   

How do you assess the current economic situation in Bulgaria?

In recent years, Bulgaria has experienced dynamic economic development, which has been significantly impacted by the global economic turmoil. These disruptions were the result of the economic downturn during the COVID-19 pandemic, the geopolitical instability in Europe due to the military conflict between Russia and Ukraine and the subsequent economic sanctions against Russia. Nevertheless, the Bulgarian economy has proven resilient to a number of crises and is following the general global trends by gradually but steadily recovering to pre-pandemic levels and further reducing inflation.
  
Another important factor that has a significant impact on the country's economic development is Bulgaria's accession to the Schengen area by air and sea from 1 April 2024, and it is expected that border controls at the land borders will soon be abolished. This emphasises Bulgaria's desire to open up its relations with Europe and further facilitate trade with European partners.
  
In addition, one of the government's main goals is to introduce the euro in Bulgaria in the near future. Bulgaria's membership in the Eurozone has positive aspects and is seen as an inevitable perspective for the country's further integration into the Union. As a result, this will lead to a strengthening of the country's economic and social policy. To this end, however, the likelihood of economic turbulence should not be disregarded, and a targeted policy is currently being pursued to prepare the country's economy for the upcoming changes and to avoid any risks so that Bulgaria can join the eurozone as an equal member.
    

How would you describe the investment climate in Bulgaria? Which sectors offer the largest potential?

The service sector in Bulgaria contributes the most to the added value of the country's economy, followed by industry, while income from the agricultural sector is in last place.
  
The frontrunners in the services sector are “Information technology activities” and “Wholesale and retail trade”. A significant proportion of companies and employees in the service sector work in the “trade” and “tourism” sectors, which employ a smaller number of highly qualified specialists. The industrial sector, on the other hand, is characterised by the “generation, transmission and distribution of electricity”. The lower investment in fixed assets could partly explain why the number of companies and jobs in the service sector is higher than in industry.
  
Based on the current situation, the most attractive sectors for development and investment are likely to be information and communication technologies (this is the sector with the highest innovation intensity and the highest number of registered patents), the energy industry, agriculture and food processing as well as me­​-chanical and vehicle engineering. Not to be neglected are the areas of transport and logistics as well as health and pharmaceuticals, which have also seen steady growth in recent years.​
  

What challenges do German companies face during their business ventures into Bulgaria?

The lack of qualified workforce for the economy is one of the biggest challenges for companies in Bulgaria. However, employers have found a number of solutions to this problem, such as expanding in-house training, focusing on increasing digitalisation, raising wages above the market average and increasing cooperation with educational institutions. 
         

How does the new Bulgarian labour legislation on remote working strengthen health and safety in the workplace?​

Bulgarian legislation is constantly seeking to keep up to date and meet the needs of the country's developing economy. For this reason, it is important to point out a very significant change in the labour legislation regulating remote work, which has become so relevant for companies in recent years. The main part of the amendments to the Labour Code relates to improving the legislation in terms of meeting the requirements for ensuring healthy and safe working conditions when working remotely. The amendments improve the existing requirements by creating clear rules and defining the responsibilities of the employee and the employer.​

  

In your opinion, how will Bulgaria develop?

Bulgaria is expected to continue to follow global market trends, while at the same time strengthening its relations with its European partners. The satisfaction of companies with Bulgaria's membership in the European Union is undeniable, which is why the attitude of companies towards Bulgaria's accession to the Schengen area and expectations towards the introduction of the single European currency are positive. In addition, the latest trade and investment data confirm the positive attitude of investors and entrepreneurs towards Bulgaria, who see the country as a good place to do business.​

Insights
Internationalisierung 

Internationalisation – On to new shores

Contact

Contact Person Picture

Minko Karatchomakov

Partner

+359 2 8182 770

Send inquiry

How we can help

​Rödl & Partner in Bulgaria
Skip Ribbon Commands
Skip to main content
Deutschland Weltweit Search Menu