Bulgaria Records Lowest Investment Levels in EU, EIB Report Reveals

EIB Survey Highlights Bulgaria's Investment Lag

Bulgaria continues to exhibit the lowest investment activity among European Union member states, according to the latest European Investment Bank (EIB) Group Investment Survey (EIBIS). The report, released on Tuesday, December 9, 2025, attributes this ongoing trend primarily to persistent geopolitical and domestic uncertainty.

The EIBIS, an annual survey encompassing approximately 13,000 firms across all EU member states and a sample from the United States, provides a comprehensive overview of corporate investment trends.

Key Findings on Investment Activity

The survey reveals that the share of Bulgarian firms actively investing stands at 71%. This figure is consistent with the EIBIS 2024 results but remains significantly below the EU average of 86%. Furthermore, only 3% of local firms anticipate increasing their investments, marking the lowest figure recorded over the past five waves of the EIBIS and aligning with the EU average of 4%.

Investment priorities for Bulgarian firms largely focus on replacement (39%) and capacity expansion (35%). Notably, over the next three years, 40% of Bulgarian companies plan to prioritize capacity expansion, a percentage higher than the EU average of 26%.

Persistent Obstacles to Investment Growth

The EIB report underscores several critical factors contributing to Bulgaria's subdued investment climate:

• Geopolitical Risks and Trade Tensions: Approximately seven out of ten Bulgarian firms involved in international trade are sensitive to geopolitical risks and trade tensions.
• Regulatory and Logistical Challenges: Changes in customs and tariffs, along with disruptions to logistics and transport, are cited as significant obstacles. Compliance with new regulations is identified as the most prominent hurdle for Bulgarian firms and the EU at large.
• Human Capital and Future Uncertainty: The availability of skilled staff remains the most pressing obstacle, concerning 86% of firms, followed by uncertainty about the future, which worries 82% of businesses.
• Domestic Governance Issues: Longer-term systemic issues include political instability, a lack of clear and consistent legislation, cumbersome administrative procedures, low institutional efficiency, and an absence of long-term strategic planning for investment activity.
• Financial Constraints: A higher proportion of Bulgarian firms, 14.2%, face financial constraints compared to the EU average of 6.1%.

Historical data also indicates a sharp decline in Foreign Direct Investment (FDI) after the 2008 global financial crisis, falling from an average annual rate of 14.1% of GDP between 2000 and 2008 to just 3.2% of GDP in the period from 2010 to 2019.

Cautious Optimism Amidst Challenges

Despite the prevailing challenges, Bulgarian firms show some signs of cautious optimism. Compared to the EIBIS 2024, businesses are more optimistic about their sector's prospects (16% versus 6%) and their access to external finance (18% versus 13%). However, attitudes towards the broader economic, political, and regulatory climate, while improving, still remain at low levels.

Interestingly, Bulgarian firms receive 1.5 times higher policy support for their financial investments than the EU average, benefiting more from grants and favorable bank financing. The EIB continues to support Bulgarian businesses in their efforts towards sustainable projects and green and digital transitions to enhance economic competitiveness and resilience.