Economic structure of Bulgaria at a glance

Bulgaria has a strategic location in the center of Southeastern Europe and the main roads of Europe to the Middle East and Asia pass through

• Bulgaria is strategically located and provides access to the following markets:
  • South-East Europe – a 122 million inhabitant, high growth market
  • EU – Bulgaria offers the lowest cost , zero tariff access to a 500 million inhabitant market
  • CIS, Middle East and North Africa
• Bulgaria offers a combination of political and macroeconomic stability and incentives for doing business:
  • Stable parliamentary democracy; EU, NATO and WTO member
  • Bulgaria’s currency is fixed to the Euro under a currency board arrangement
  • Lowest tax rate and one of the lowest labor costs in the EU coupled with special incentives for investors
  • EU funding – more than €8 bn in EU funds over the next years

Source: Bulgarian National Bank, Eurostat, sovereign rating companies’ websites

• The Bulgarian economy reported sustained growth of over 6% for the period 2000-2008

• The economy stabilized in 2011 with real GDP growth of 1.7%, which is
  projected to rise to 2.8% in 2012

• Bulgaria is the country with the second-lowest debt in the EU: 17.0% of GDP

• Currency stability resulting from the currency board introduced in 1997

• Bulgaria is the only European country whose credit rating was increased by Moody’s

GDP Growth: Bulgaria

Source: Bulgarian National Bank

GDP Breakdown (2011)

Source: Bulgarian National Statistical Institute

• The World Bank ranks Bulgaria sixty-fifth position in the world regarding GDP per capita (purchasing power) to $13.780
• The contribution of the sector “Services” to the GDP has increased more than 2 times in the last 20 years

Industry, gross output by subsectors, 2011 (%)

Source: Bulgarian National Bank

Budget deficit levels are minimal and tamed by a low public debt

•  Bulgaria continues to boast one of the lowest budget deficits in the region and the European Union

•  The government imposed fiscal consolidation and structural reforms, privatization of unprofitable assets and a more conservative budget for 2012

•  Bulgaria has one of the lowest public debts in Europe, following the consistent reduction policy of the last three governments

•  In response to the financial crisis, Parliament passed a strict debt ceiling in 2010

General government deficit/surplus in % of GDP,

2007-2011 average

Source: Eurostat

Average government debt (2005-2010)

•  More than 80% of the FDI come from the EU countries

•  Before the crisis, investments were mainly in the sectors of real estate and finance, while in the last two years the tendence is for their redirection in production

FDI by host country, 1996-2011 (€ mln)

Source: Bulgarian National Bank

FDI flows by industry, 1996-2011 (€ mln)

Source: Bulgarian National Bank

Main trade partners, 2010 (€ mln)

Source: Eurostat