Analysts in the property industry have insisted that Bulgaria is not suffering in the face of the global economic downturn.

According to Quest Bulgaria magazine, the eastern European country has been affected by external problems, partly because its economy is so reliant on foreign direct investment.

However, the publication stated that its rate of economic growth is still one of the highest in Europe and is likely to remain so for the foreseeable future.

"Bulgaria may be feeling the pinch, it is by no means suffering," it commented.

Quest Bulgaria highlighted the banking system as one area which is doing particularly well, describing it as "stable with an excellent liquidity status".

The publication added that since Bulgarian branches are increasingly having to rely on domestic sources of money, many are offering highly attractive rates to tempt more customers.

This follows a number of reports that the country is becoming more and more popular with Russian property investors.