More than 80% of the Swedish Companies in Bulgaria Plan Expansion of Operations in 2019

More than 80% of the Swedish companies in Bulgaria plan to invest in their business during the current year. This information is based on a survey made by Business Sweden and is conducted in collaboration with the Swedish Embassy. The companies plan to invest the majority of their capital in staff, digital technologies, production and office facilities.

The data was presented by H.Е. Louise Bergholm, the Ambassador of the Kingdom of Sweden to Bulgaria, during the Opportunities and challenges for the business in Bulgaria meeting, organised by the Bulgarian Chamber of Commerce and Industry (BCCI), the Swedish Embassy in Bulgaria and the Swedish-Bulgarian Chamber of Commerce.

Thirty-two Swedish subsidiaries in Bulgaria participated in the survey. Almost one third of them operate in the industry, while the others operate in the sectors of services, telecommunications, healthcare, transportation, constructions, etc. The majority of the companies offer B2B services for other companies.

In general, the Swedish business in Bulgaria has a positive attitude: 76% of the participants in the survey expect growth in their sector, and 84% are optimistic for 2020 as well. The report points out that the strong advantages of our country are the EU membership, the low income tax, the well-prepared employees and the competitive labour costs.

According to the Swedish companies (47%), the biggest challenge for growth in Bulgaria is the process of recruiting suitable employees. The analysis notes that the lack of people and the continuous growth of the economy could increase the remunerations in mid-term plan.

Almost half of the participants in the survey point that competition is also a challenge. At the same time, 40% consider the need for additional measures for relief of the administrative burden as another challenge.