Bulgaria is expected to get rid of the negative effects of the global economic crisis and embark on the road of economic expansion by 2012. This is said in an analysis of GS Research and InvestNet.bg, authors of the so-called Investment Sentiment Index - an indicator of the development of the Bulgarian economy.

The index and the accompanying analysis are made on a quarterly basis and founded on surveys covering professional and institutional investors as well as representatives of non-governmental organizations. It reflects investors' current expectations for the development of the investment process in Bulgaria.

The index for 2012, based on a September 2010 survey, is 68.7 points, which reveals rather optimistic expectations, the analysis says. This is why 2012 should see a considerable increase of investment activity in Bulgaria.

The highest possible index is 100 points. If the index is over 50 points, this means that the investment sentiment improves, while an index of less than 50 points means that the investment sentiment deteriorates.

According to September 2010 data, the investment sentiment for 2011 initially fell down to 59.9 points but then rose up to 64 points. Regardless of the decrease, the index is still positive, which means that next year will be good for investments. Most investors are rather optimistic for 2011.

The figures for the fourth quarter show that the investment sentiment has risen by almost six points up to 52.1 points compared to the previous quarter. This may be interpreted as cautious optimism on the part of most investors. However, although the index for October-December 2010 is rising, the investment climate remains uncertain in the short term.

Source: BTA