Political instability is a major challenge for German investors in Bulgaria

A number of German companies do business in Bulgaria in specific economic spheres, despite the military conflicts nearby and the political crisis inside the country

published on 10/24/24 9:15 AM

Author: Yoan Kolev

Photo: Pixabay

The German economy has been shrinking and the government expects a decline of 0.2% of GDP. Some of the main reasons for this include unresolved structural problems related to lack of energy security, excessive bureaucracy and shortage of skilled workers, as well as geopolitical uncertainty. In July, an additional Growth Initiative package of measures was adopted to stimulate the economy. Vice Chancellor Robert Habeck said it could boost Germany's growth rate by about half percent once fully implemented. It is assumed that in 2025 there will be growth again and it will be 1.1%, while in 2026 it will reach 1.6% of GDP.

What is the effect in Bulgaria of the turbulence experienced by one of the engines of the European economy?

Germany is a key trade partner of this country, as the annual exchange of goods has been growing and reaches 12 billion euros.

Sonia Miklai

Sonia Miklai

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According the General Manager of the German-Bulgarian Chamber of Industry and Commerce, Sonia Miklai, German companies that use the raw material deposits on Bulgarian territory also operate here and that is why their investments will continue in the long term. On the other hand, Bulgaria has potential, which it is already actively developing, related to the attraction of specialized companies in various spheres, aimed at robotics, information technologies, cyber security and others. Quite a few German companies know this and it is no accident that they have opened their offices in the country.

Moritz Seiler

The Head of the Economic Section at the German Embassy in Sofia, Moritz Seiler, told us more about the advantages that German investors find in Bulgaria compared to our neighbours in the Balkans: