Opportunities For The Strategic Investor Remain

Foreign direct investment flows to Bulgaria have been less impressive over the first four months of 2008, potentially confirming our view that there will be a deterioration in investment activity over the course of 2008 and 2009. That said, we maintain a long-term positive view for the Bulgarian economy and its ability to attract foreign investment. Financial incentives for high-tech manufacturing and service firms, a low-cost and skilled workforce, as well as a strategic position between Western Europe and the Middle East and Central Asia, will remain attractive to the strategic investor.

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