In the latest rating by attractiveness for investment, Bulgaria comes second to Hong Kong in the world, Economy and Energy Minister Peter Dimitrov said in Varna on Sunday. There he took part in the Fifth Youth Social Forum 2008 on "Modern Dimensions of Social Justice. Prospects of Left-wing Policies" organized by the Federation of Young Socialists and the Centre for Strategic Studies.

In Dimitrov's words, this prestigious place means that part of the capital leaving Western Europe could come to Bulgaria.

"This gives us hope that there will be no drop in foreign investment but, on the other hand, most probably Bulgarian exports will shrink responding to the actual demand in Western Europe," he said.

Dimitrov believes that Bulgaria was placed second as a hot spot for investment due to several reasons. First, its tax policy which creates an attractive tax environment. Another reason is its good business climate. According to the rating of the Association of European Chambers of Commerce and Industry, Bulgaria places second after Denmark by business climate in the EU.

The global financial crisis cannot but have an impact on domestic economy as 60 per cent of Bulgaria's total export goes to the EU, Dimitrov said. A decline in consumption in the EU will by all means affect this country. The crisis pulls wages down. The prices of oil tend to go down; those of gas are expected to drop, too, but this would happen at least six months later. Food prices should follow suit but the business is not happy with the falling prices as it signals a slump in demand.

In Dimitrov's view, for Bulgarians it is most important that there is no substantial outflow of investment since this would lead to a loss of jobs. "This is our greatest concern but I hope it will not happen," he said.

Source: BTA