Since 1990 countries in Southeastern Europe have undergone significant improvements and growth in economic power and resources, attracting record foreign investments.

The countries from the region have better macroeconomic growth rate than the ones in Central Europe. In 2004 GDP growth reached 5.4 per cent, Banker newspaper reported.

Free trade agreements and regional energy markets further improve the interaction between Bulgaria and its neighbours. Since countries in Southeastern Europe want to integrate into the EU, they join forces to improve the investment climate, re-construct political and legal sectors to ensure stability.

With its huge markets and highly qualified labour force, the region attracts record foreign investments, Southeastern Europe Investment Guide 2006 published by the Bulgarian Economic Forum shows. Direct foreign investments reached 14 billion euro in 2004 and 20 billion euro in 2005.

The direct foreign investments to GDP ratio shows Bulgaria and Croatia have been the absolute leaders for the past ten years. Investors' interest in Bulgaria was further provoked by the country's EU integration process. It is expected after EU accession, investments will continue to flow but will not play as big part in the country's economy as EU funds will.

Investment deals in Bulgaria for 2004 were concentrated in the energy sector and the telecommunications branch.