INFORMATION ON CURRENT DEVELOPMENT
OF THE ECONOMY OF BULGARIA

The stabilization strategy of the Bulgarian Government is based on the introduction of a Currency Board in mid 1997, which combined with the support of the IMF made possible the economic recovery from the heavy crisis of the end of 1996 and the beginning of 1997.

As a result today Bulgaria is politically and economically stable /fixed rate: 2 lv.= 1 euro/, enjoys full membership in the European Union /the Treaty with the EU was signed on 25 April 2005 – full member of EU since 1 January 2007/ with competitive labour force in terms of both reasonable cost and high qualifications. NATO member since 2004.

Bulgaria lies at the center of South-eastern Europe and has access to a market available to 560 million consumers. Bulgaria guarantees protection of investors. ?ur country has concluded more than 100 agreements on mutual protection of investments and avoiding double taxation.

Basic Country Data

Area: 110,910 sq. km. / 42,822 square miles;
Population:  in 2009 - 7 600 000; 
Economy (2009): 63.6% services; 30.4% industry and 6.0% agriculture;
University degrees: 15% of population;
Native language: Bulgarian;
Popular Foreign languages in Bulgaria: English, German, French, Spanish, Russian;
Religion: 83% Eastern Orthodox;
Government: Parliamentary democracy;
Currency: BGN pegged to EUR at 1.95583:1;
Affiliations: EU, NATO, WTO.

Macroeconomic indicators of Bulgaria in the last five years are:

  • Real GDP growth: - 5.0% /2009/ with total GDP in 2009 – EUR 33.9 bln; 6% /2008/, 6.2% (2007);  6.3% /2006/; 6.2 % /2005/; 6.6% /2004/;
  • Inflation: 0.6% /2009/; 12.3% /2008/; 8.4% /2007/; 7.3% /2006/; 5% /2005/;    6.1% /2004/;
  • Unemployment: 10.3% /March 2010/; 9.1% /2009/; 6.3%/2008/; 7% /2007/; 9.1% /2006/; 
  • Foreign Direct Investments: Euro 3213 mln /2009/; Euro 6697 mln /2008/; Euro 9052 mln /2007/; Euro 6222 mln /in 2006/; Euro 3152 mln /2005/;
  • Bulgarian Export /FOB/: Euro 12000 mln /2009/; Euro 15200 mln /2008/; USD 21500 mln /2007/; USD 14920 mln /2006/; USD 11821 mln /2005/; USD 9888 mln /2004/;
  • Bulgarian Import /CIF/: Euro 14 mln /2009/; Euro 21000 mln /2008/; USD 24500 mln. /2007/; USD 22897 mln /2006/; USD 18331 mln /2005/ USD 14379 mln. /2004/;
  • Tourism: Bulgaria has attracted  about 5.5 mln foreign tourists in 2009.

Priority Economic Sectors of Bulgaria: IT & Hi-Tech; Energy; Tourism

Bulgaria is the New IT Industry Destination

cost effectiveness and skill

  • Outstanding HUMAN CAPITAL;
  • Most competitive COST OF LABOR in EU;
  • Lowest corporate and personal INCOME TAX LEVELS;
  • IT sector is TOP ECONOMIC PRIORITY of the Bulgarian government;
  • STRATEGY for competitiveness of IT to be adopted soon;
  • No VAT for software exports.

Energy Sector Overview

  • Positioning of Bulgaria as a reliable base for the transit of oil, natural gas and electric power and as a regional dispatching cent?r;
  • Biggest exporter of electricity on the Balkans;
  • Available power generation capacity– about 10000 ?W;
  • Trend towards greater energy independence through development of local energy resources.

Tourism in Bulgaria – about 5.5 mln. foreign tourists have visited Bulgaria in 2009.

  • Well-positioned international tourist destination – between the 10 most popular tourist destinations all over the world.
  • Rare combination of natural environment and climatic conditions for year-round tourism.
  • Wide range of products: Beach/Recreation, Winter Sports, Spa/Health, Culture/Museum/Monasteries, Nature/Activity, Touring, Conferences.
  • One of the few European tourist destinations with a strong growth in the last few years.