Bulgarian Economy
Following its break with Communism in 1989, Bulgaria now enjoys
high economic growth at an average rate of 4% since 2000.
Foreign investors are increasingly focusing their attention on
Bulgaria where some of the most exciting real estate prices are
still on offer. Whilst the country's infrastructure continues to
be developed at a rapid pace in anticipation of EU membership in
January 2007, investors' confidence is riding high. Tourism
figures have increased by 50% over the past 4 years, greatly
contributing to the country's economic boom.
Main Industries
The leading industries are machine manufacture, metal working,
food processing, engineering and the production of chemicals,
textiles, and electronics. Bulgaria produces many mineral
resources, including bauxite, copper, lead, zinc, coal, brown
coal (lignite), iron ore and oil and natural gas.
Economic Growth
Nearly all the industries were state controlled during Communist
days, so the aftermath saw a resulting stagnant economy, causing
a shocking 40% drop in the standard of living, and shortages of
food, energy and consumer goods. This contributed to an enormous
foreign debt. Market reforms were therefore set in motion in the
1990s along with the launch of a huge privatisation programme,
in an attempt to begin stabilising the economy.
Since then, with the aid of World Bank funding, Bulgaria has
enjoyed a steady growth and by 2004 it was experiencing record
breaking economic growth. Meanwhile, unsurprisingly the trade
deficit has skyrocketed.
In 1997, Bulgaria pegged its currency, the lev, to the German
Deutschemark and later to the euro. Since then, Bulgaria has
managed to keep inflation at below 5% while maintaining a budget
deficit close to zero and a debt at around 60 % of gross
domestic product (GDP).
Because of its relatively poor economy, Bulgaria will be obliged
to receive EU funds after membership.
Politics
The Bulgarian Socialist Party, established in August 2005
dominates Bulgaria's new Cabinet. National Movement, Simeon II,
and the Movement for Rights and Freedoms are its coalition
partners.
Under the new Cabinet, Bulgaria is now taking drastic and speedy
measures to qualify it for its accession to the European Union,
and is trying to make up for lost time wasted during the recent
Cabinet negotiations.
In June 2005 The European Commission sent a warning letter
reminding Bulgaria of its need to pay special attention to 5 of
the 29 spheres under consideration for reform. These covered
agriculture, justice and internal order, environmental
protection, the law on association, and free access to services.
Foreign Minister, Ivailo Kalfin, and the new Cabinet are
accepting most of the EU-related laws and if the National
Assembly works efficiently, reforms will be sped up sufficiently
in readiness for 2007.
Corruption in public administration, a currently weak judiciary
and the presence of organised crime remain some the largest
challenges for Bulgaria today. Agriculture
The difficult transition from Communism to a market economy in
the 1990s forced many Bulgarians to return to agriculture for a
living.
Today agriculture accounts for more than 20% of the gross
national product (GNP) and employs about the same percentage of
the workforce. Main crops are wheat, oil seeds, corn, barley,
vegetables, and Oriental tobacco. Grapes and other fruit, as
well as roses, are grown, and wine and brandy are also produced.
Bulgaria is home for Bacillus Bulgaricus a number one yogurt in
the world, which is believed to be the main factor for the long
life of the Bulgarians.
Bulgaria is a renowned producer and exporter of wine to more
than 70 countries worldwide. Bulgaria boasts are 12 wineries
producing some excellent wines: Gamza (red wine with a similar
taste to Burgundy), Mayrud (rather like a Bordeaux in taste) and
Melnik (similar to M