Labor costs continue to be among the positive factors for foreign investors "We know that salaries in Bulgaria are competitive and this is an asset, but in recent years we have observed a double increase in remuneration in some sectors. Over 50% of respondents answered that low salaries are not an advantage for Bulgaria", said Philipp Kupfer, commercial counselor at the Austrian Embassy in Bulgaria.
He presented the annual report on the business climate in our country through the eyes of Austrian business. At the end of 2024, 98 companies were surveyed.
The lack of highly qualified labor continues to be among the main problems among Austrian partners. Over 80 of the companies have indicated it as a problem. "10 years ago we started a dual education project. Austrian companies and taxpayers are paying for this project. There are already practical trainings, with 10 companies participating in this project and over 1,000 students, but we need more public support," Kupfer admitted.
Digitalization can help to address the problem of labor shortages, but not 100%. There are 100% automated companies, but there are also companies where manual work prevails.
"The best words that can be used to describe the business climate in the country would be "stability" and "continuity", leaning towards a certain amount of "optimism," commented Kupfer.
The economic climate worldwide has worsened. This is the opinion of 50% of the surveyed respondents. For Bulgaria, 40% are of the opinion that business conditions have worsened. Over 30% are of the opinion that this trend will continue both globally and locally. Eva 14% are of the opinion that we can expect an improvement in the business climate, whether in our country or globally.
The negative trends and expectations, of course, also have an impact on orders. In 29% of companies, there is a deterioration in this indicator. In 32%, there is no change, and in 37% there is growth, which is a touch of optimism against the background of the economic situation.
Over 65% of companies have not made any changes in terms of the number of employees. In 15%, staff reductions have been made, and in 17% - new appointments.
Over half of the companies have not changed the volume of investments. Almost equal - about 22% is the number of companies that have either made investments or reduced them. This is again proof that we are operating in an uncertain economic environment - both international and local.
"No change". This is how most companies answer the questions about whether they plan to change turnover, order intake, capacity utilization, number of employees and volume of investments. This is followed by companies that intend to increase these indicators. Fortunately, few are those that plan to reduce them.
Political and economic instability, bureaucracy, legal certainty are assessed as "very" or "rather" bad, which inevitably hinders business development.
Despite the prevailing negative attitudes, Austrian business is looking for Bulgarian partners. "I can state from our daily experience at Advantage Austria that interest in Bulgaria remains stable. "Austrian companies continue to look for Bulgarian partners, Bulgarian companies to work with, and even to invest in a subsequent stage," concluded Kupfer.