BULGARIA
One of the two newest EU members
A Balkan country with spectacular mountains and the Black sea coastline
Total area: 111, 000 sq km (roughly the size of Tennessee)
Population: 7.2 million
Government type: Parliamentary democracy
Administrative division: 28 provinces
Capital + other major cities: Sofia (1.3 million) + Plovdiv (706,413), Varna (456,915), Burgas (417,810), Stara Zagora (358,342)
Currency: lev (BGL)
Languages: Bulgarian 84.5% (official), Turkish 9.6%, Roma 4.1%, other 1.8%
Ethnicity: Bulgarian 83.9%, Turk 9.4%, Roma 4.7%, other 2% (including Macedonian, Armenian, Tatar, Circassian)
Religion: Bulgarian Orthodox 82.6%, Muslim 12.2%, other Christian 1.2%, other 4%
President: (Mr.) Rosen PLEVNELIEV (since 22 January 2012)
Prime Minister:(Mr.) Boyko BORISSOV (since 27 July 2009)
Date of EU accession: 1 January 2007 |
 |
MACROECONOMIC OVERVIEW
Selected economic indicators, Bulgaria, 2005 - 2012
| |
|
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012* |
| GDP |
|
|
|
|
|
|
|
|
|
| Real GDP growth |
% |
6.4 |
6.5 |
6.4 |
6.2 |
-5.5 |
0.4 |
1.7 |
1.4 |
| GDP at current prices |
€ bn |
23.25 |
26.48 |
30.77 |
35.43 |
34.93 |
35.05 |
38.48 |
|
| Foreign trade |
|
|
|
|
|
|
|
|
|
| Exports |
€ bn |
9.43 |
16.21 |
18.30 |
20.63 |
16.59 |
20.70 |
25.60 |
|
| Imports |
€ bn |
12.94 |
20.86 |
24.37 |
27.89 |
19.68 |
21.38 |
25.34 |
|
| Balance |
€ bn |
-3.51 |
-4.65 |
-6.07 |
-7.26 |
-3.09 |
-0.68 |
0.26 |
|
| Prices |
|
|
|
|
|
|
|
|
|
| CPI - average inflation rate |
% |
6.0 |
7.4 |
7.6 |
12.0 |
2.5 |
3.0 |
3.4 |
|
| Employment |
|
|
|
|
|
|
|
|
|
| Registered unemployment |
% |
10.1 |
9.0 |
6.9 |
5.6 |
6.8 |
10.2 |
11.2 |
|
| Average monthly gross wage |
€ |
165 |
184 |
220 |
277 |
314 |
344 |
|
|
| Exchange rates |
|
|
|
|
|
|
|
|
|
| BGN/USD average |
|
1.66 |
1.49 |
1.33 |
1.39 |
1.36 |
1.47 |
1.39 |
|
| Currency board fixed rate: BGN/EUR |
|
1.95583 |
1.95583 |
1.95583 |
1.95583 |
1.95583 |
1.95583 |
1.95583 |
|
Source: Eurostat, 2011; * - forecast
Bulgaria, one of the two newest EU members, has made impressive strides towards long-term stability and sustained growth since a major economic downturn in 1996. Unfortunately, Bulgaria still remains significantly poorer than other EU member countries. Its 2008 GDP per capita reached only 20% of the EU average.
The Bulgarian economy experienced robust growth between 2000 and 2008. The country is considered one of the most stable markets in South-Eastern Europe. Bulgaria's very attractive tax system (10% corporate tax) and the lowest salaries in the EU have been helping to pull in large volumes of foreign direct investment. The country was also affected by the global financial crisis, experiencing a GDP decline by 5.5% in 2009. In 2010, its economy started to grow again, and the unemployment rate has been growing - exceeding 11% in 2011 (from under 6% at the end of 2008).
Bulgaria is highly praised for prudent fiscal policies it had to launch prior to its EU accession in 2007. The 2009 budget deficit amounted to only 0.7% (smallest in the EU). The country's bank system remains stable, enjoying very high liquidity.
KEY SECTORS
The key well-functioning sectors include engineering and electrical engineering, metallurgy, electronics, transportation (production of ships, trains, tractors, and trams), petroleum and chemical, pharmaceutical, textile, and food industries.
A trend of reducing the number of employees in agriculture and growing employment in the industry and service sectors has been observed in recent years; it resulted from restructuring of the economy and employment shift toward high performance sectors.
The industry accounts for slightly under 30% of GDP. The country's dominant industries are mining and energy. Bulgaria's exports of its abundant natural resources in, for instance, copper, lead, zinc and coal combined for 11.4% of total exports in 2008. Over 40% of Bulgaria's energy is generated from coal. Energy production accounts for 18.2% of the country's overall industrial GDP, and Bulgaria is Southeast Europe's primary exporter of electricity.
Bulgaria is the fastest growing textile and clothing producer in Europe; the textile industry generates 19% of industrial production and 24% of industrial exports. Food production accounts for 18.4% of total industrial production; the key sub-sectors include meat processing, dairy, canning, sugar and sugar products manufacturing, vegetable oil production, wine production, brewing, fish processing, tobacco production and milling.
EasyLink provides professional expertise in strategic market research, market intelligence, competitive intelligence, market size analysis and market potential evaluation, competitive landscape and distribution structure study, identification of new customers and potential partners etc. Please contact us to discuss how we can assist your business objectives in export, marketing or sourcing.
We are experienced experts in matchmaking projects involving the search, identification, screening and pre-selection of business partners in Central & Eastern Europe, ranging from distributor search to profiling of prospective customers and identifying specific business opportunities; we assist our clients with sourcing in emerging markets and low-cost markets in the CEE region.
EasyLink has a unique track record in international trade promotion. With local consultants in all key markets in Central & Eastern Europe, EU markets and some overseas markets, we provide customized market research, develop trade opportunities with prospective partners and new customers, and assist clients with strategic advice for their export, marketing and sourcing needs.
MARKETS 