Bulgaria Economy
Bulgaria's economy contracted dramatically after 1989 with the loss of the market of the Council for Mutual Economic Assistance (COMECON) member states, to which the Bulgarian economy had been closely tied. The standard of living fell by about 40%, but it regained pre-1990 levels in June 2004. In addition, UN sanctions against Yugoslavia and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged in 1994 when the GDP grew and inflation fell. During 1996, however, the economy collapsed due to lack of international economic support and an unstable banking system. Since 1997 the country has been on the path to recovery, with GDP growing at a 4 – 5% rate, increasing FDI, macroeconomic stability and EU membership.
Mall of Sofia with the only IMAX cinema in the Balkans
Tourism has always been a big industry in the country, and still booming: one of the 130 hotels in Slanchev Bryag, one of the most popular resorts in Eastern EuropeThe former government, elected in 2001, pledged to maintain the fundamental economic policy objectives adopted by its predecessor in 1997, i.e., retaining the Currency Board, practising sound financial policies, accelerating privatisation, and pursuing structural reforms. Economic forecasts for 2005 and 2006 predict continued growth in the Bulgarian economy. The annual year-on-year GDP growth for 2005 and 2006 is expected to total 5.3% and 6.0%, respectively. Industrial output for 2005 is forecast to rise by 11.9% year-on-year, and for 2006 — by 15.2% year-on-year. Unemployment for 2005 is projected at 11.5% and for 2006 — at about 9%. As of 2006 the GDP structure is: agriculture- 8.0%; industry-26,1%; services- 65.9%.
Agricultural output has decreased since 1989 but production is growing in the recent years. Farming is more important than stock-breeding. The prevalence of mechanisation is higher than most other Eastern European countries but there is lack of modern equipment. There are more than 150,000 tractors, 10,000 combines, alongside aeroplanes and other equipment. Production of the most important crops is: wheat-4,120,000 t; sunflower- 1,080,000 t; maize- 2,120,000 t; grapes- 500,000 t; tobacco- 79,000 t; tomatoes- 530,000 t; barley- 1,180,000 t; potatoes- 650,000 t; peppers- 213,000 t; cucumbers- 110,000 t; cherries- 75,000 ; watermelons- 420,000 t; cabbage- 340,000 t; apples- 150,000 t; plums-150,000 t; strawberries- 52,000 t.
Industry is of great importance for the economy. Although Bulgaria is not very rich in reserves of coal, oil, and gas, the country is a major producer of electricity and the most important exporter in the whole region due to the Kozloduy Nuclear Power Plant with a total capacity of 3,760 MW. A second plant, the Belene Nuclear Power Plant with a capacity of 2,000 MW is under construction. There is a $1,400,000,000 project for construction of an additional 670 MW for the 500 MW Maritza Iztok 1 TPP (see Energy in Bulgaria).
The production of steel and pig iron is concentrated in Kremikovtsi and Pernik. There is also a third metallurgical base in Debelt. In production of steel and steel products per capita the country is first in the Balkans.
Ferrous metallurgy is very important. The largest refineries for lead and zinc are in Plovdiv (the biggest refinery between Italy and the Ural mountains), Kurdzhali and Novi Iskar; for copper in Pirdop and Eliseina; for aluminium in Shumen. In production of many metals per capita, Bulgaria is first in South Eastern Europe and among the first in Europe and the world.
About 14% of the total industrial production is related to machine building and 24% of the people are employed in this field. Its importance decreased since 1989 but is growing again now. Electronics and electrical equipment production is very well developed. The largest centres are Sofia, Plovdiv and the area around, Botevgrad, Stara Zagora, Varna and many others. These plants produce household appliances, computers, CDs, telephones, medical and scientific equipment. Many of the factories producing transportation equipment do not work with full capacity. There are plants producing trains (Burgas, Dryanovo), trams (Sofia), trolleys (Dupnitsa), buses (Botevgrad), trucks (Shumen), motocars, automotive assembly plant in Lovech. The main centre of agricultural machinery is Ruse. Shipbuilding is concentrated in Varna, Burgas and Ruse. Arms production is mainly developed in central Bulgaria (Kazanlak, Sopot, Karlovo).
The property market has been boosted recently by foreigners seeking additional homes. These buyers come from right across Europe but the largest number are British, encouraged by comparatively cheap property and because the country is more accessible through low cost air travel.
Mall of Sofia with the only IMAX cinema in the Balkans
Tourism has always been a big industry in the country, and still booming: one of the 130 hotels in Slanchev Bryag, one of the most popular resorts in Eastern EuropeThe former government, elected in 2001, pledged to maintain the fundamental economic policy objectives adopted by its predecessor in 1997, i.e., retaining the Currency Board, practising sound financial policies, accelerating privatisation, and pursuing structural reforms. Economic forecasts for 2005 and 2006 predict continued growth in the Bulgarian economy. The annual year-on-year GDP growth for 2005 and 2006 is expected to total 5.3% and 6.0%, respectively. Industrial output for 2005 is forecast to rise by 11.9% year-on-year, and for 2006 — by 15.2% year-on-year. Unemployment for 2005 is projected at 11.5% and for 2006 — at about 9%. As of 2006 the GDP structure is: agriculture- 8.0%; industry-26,1%; services- 65.9%.
Agricultural output has decreased since 1989 but production is growing in the recent years. Farming is more important than stock-breeding. The prevalence of mechanisation is higher than most other Eastern European countries but there is lack of modern equipment. There are more than 150,000 tractors, 10,000 combines, alongside aeroplanes and other equipment. Production of the most important crops is: wheat-4,120,000 t; sunflower- 1,080,000 t; maize- 2,120,000 t; grapes- 500,000 t; tobacco- 79,000 t; tomatoes- 530,000 t; barley- 1,180,000 t; potatoes- 650,000 t; peppers- 213,000 t; cucumbers- 110,000 t; cherries- 75,000 ; watermelons- 420,000 t; cabbage- 340,000 t; apples- 150,000 t; plums-150,000 t; strawberries- 52,000 t.
Industry is of great importance for the economy. Although Bulgaria is not very rich in reserves of coal, oil, and gas, the country is a major producer of electricity and the most important exporter in the whole region due to the Kozloduy Nuclear Power Plant with a total capacity of 3,760 MW. A second plant, the Belene Nuclear Power Plant with a capacity of 2,000 MW is under construction. There is a $1,400,000,000 project for construction of an additional 670 MW for the 500 MW Maritza Iztok 1 TPP (see Energy in Bulgaria).
The production of steel and pig iron is concentrated in Kremikovtsi and Pernik. There is also a third metallurgical base in Debelt. In production of steel and steel products per capita the country is first in the Balkans.
Ferrous metallurgy is very important. The largest refineries for lead and zinc are in Plovdiv (the biggest refinery between Italy and the Ural mountains), Kurdzhali and Novi Iskar; for copper in Pirdop and Eliseina; for aluminium in Shumen. In production of many metals per capita, Bulgaria is first in South Eastern Europe and among the first in Europe and the world.
About 14% of the total industrial production is related to machine building and 24% of the people are employed in this field. Its importance decreased since 1989 but is growing again now. Electronics and electrical equipment production is very well developed. The largest centres are Sofia, Plovdiv and the area around, Botevgrad, Stara Zagora, Varna and many others. These plants produce household appliances, computers, CDs, telephones, medical and scientific equipment. Many of the factories producing transportation equipment do not work with full capacity. There are plants producing trains (Burgas, Dryanovo), trams (Sofia), trolleys (Dupnitsa), buses (Botevgrad), trucks (Shumen), motocars, automotive assembly plant in Lovech. The main centre of agricultural machinery is Ruse. Shipbuilding is concentrated in Varna, Burgas and Ruse. Arms production is mainly developed in central Bulgaria (Kazanlak, Sopot, Karlovo).
The property market has been boosted recently by foreigners seeking additional homes. These buyers come from right across Europe but the largest number are British, encouraged by comparatively cheap property and because the country is more accessible through low cost air travel.
Info from - http://en.wikipedia.org/wiki/Bulgaria
