Key Facts
- GDP (ppp) per CAPITA
- $10,700 (2006 est.)
- Inflation Rate
- 6.5% (2006 est.)
- Population
- 7,322,858 (July 2007 est.)
- Country Risk Ratings
- A4
- Ease of Doing Business
- 46/178
- Global Competitiveness
- 79/131
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Bulgaria
Northern Bulgaria attained autonomy in 1878 and all of Bulgaria
became independent from the Ottoman Empire in 1908. Having fought on
the losing side in both World Wars, Bulgaria fell within the Soviet
sphere of influence and became a People's Republic in 1946.
Communist domination ended in 1990, when Bulgaria held its first
multiparty election since World War II and began the contentious
process of moving toward political democracy and a market economy
while combating inflation, unemployment, corruption, and crime. The
country joined NATO in 2004 and the EU in 2007.
Capital City: Sofia (+2 GMT)
Chief of State: President Georgi PURVANOV
Head of Govt.: Prime Minister Sergei STANISHEV
Currency: Lev
Main Cities: Plovdiv, Varna
Major Languages: Bulgarian
Calling Code: 359
Voltage: 110/220V
Stock Exchanges: Bulgarian Stock Exchagne
Primary Religions: Bulgarian Orthodox
Main Airports
Bourgas (BOJ), Sofia (SOF), Varna (VAR)
U.S. Embassy
16 Kozyak Street, Sofia
tel: [359] (2) 937-5100
Statistics
- GDP: purchasing power parity:
- $71.54 billion (2005 est.)
- GDP - real growth rate:
- 5.5% (2005 est.)
- GDP - per capita: purchasing power parity:
- 9,600 (2005 est.)
- Inflation rate (consumer prices):
- 5% (2005 est.)
- Labor force:
- 3.34 million (2005 est.)
- Exports:
- $11.67 billion f.o.b. (2005 est.)
- Exports - partners:
- Italy 12.8%, Germany 11.1%, Turkey 9.9%, Greece 6.1%,
Belgium 5.9%, France 4.3%, US 4.1% (2005)
- Imports:
- $15.9 billion f.o.b. (2005 est.)
- Imports - partners:
- Germany 14.6%, Russia 12.2%, Italy 9.8%, Turkey 6.7%, Greece
6.5%, France 4% (2005)
- Population:
- 7,385,367 (July 2006 est.)
- Population growth rate:
- -0.86% (2006 est.)
- Population Below Poverty Line:
- 13.4% (2002 est.)
- Major Industries:
- electricity, gas, water; food, beverages, tobacco; machinery
and equipment, base metals, chemical products, coke, refined
petroleum, nuclear fuel
- Employing Workers: 100*
- Registering Property: 65*
- Enforcing Contracts: 52*
- Closing a Business: 64*
- *2006 World Bank rank out of 175 countries
- Starting a Business
The table below shows the number of steps and the amount of
time needed to start a business, on average
| Indicator |
Bulgaria |
Region |
| Procedures (number) |
9 |
9.4 |
| Time (days) |
32 |
32 |
Bulgaria Risk Assessment
Country Rating
Rating: A4
A somewhat shaky
political and economic outlook and a relatively volatile business
environment can affect corporate payment behaviour. Corporate
default probability is still acceptable on average.
Risk Assessment
Economic growth remained strong in
2007, driven mainly by domestic demand with foreign direct
investment and the expansion of credit spurring investment. Job and
wage growth fuelled private consumption. Continued strong import
growth, however, particularly of capital goods, led to a further
widening of the trade deficit. Corporate payment behaviour has
remained generally satisfactory with some sectors, like agriculture
and construction, presenting above average risk.
The strong growth should continue in
2008. Investment should continue to grow at a satisfactory rate due
notably to fund transfers from the European Union. Private
consumption should remain buoyant. There should be little easing of
inflation, however, due to the strong domestic demand and wage
pressure, which could keep the country from joining the euro zone
before 2012.
Fiscal policy has remained prudent
but the extent of the current account deficit has led to an increase
in private foreign debt and greater dependence on foreign capital.
That deficit seems difficult to sustain in view of the country's
rigid exchange rate system (currency board) with foreign direct
investment expected to slow from 2008. That situation may ultimately
only unwind at the price of a sharp growth slowdown.
The risk of governmental instability
will not jeopardise the major economic policy options. The
possibility of early elections being held before the June 2009
scheduled date would not, however, facilitate implementation of new
reforms, notably those concerning the business environment.
STRENGTHS
- Accession to the European Union
has been a stimulatory factor and triggered a catch-up dynamic
in the country.
- Prudent fiscal policy and active
debt management have resulted in a considerable reduction in
sovereign default risk.
- The banking sector has been
consolidated.
- The country benefits from a
skilled labour force.
- Buoyant investment and increased
capital goods imports augur well for growth in the future.
WEAKNESSES
- The current level of external
financing needs will be difficult to sustain in the medium term.
- Foreign debt has grown
considerably under the effect of rising private debt.
- Maintaining a steady inflow of
foreign capital will require implementation of new reforms and
improvements in the business environment.
- Dissension within the centrist
coalition in power has delayed reform implementation.
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