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flag Bulgaria Bulgaria: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Bulgaria experienced a strong growth starting from 1996. Successive governments showed a commitment to establishing tax and economic reforms, but they did not manage to control inflation and the current account deficit. During this time, Bulgaria was attracting a lot of FDI; however, the country has been badly hit by the financial crisis of 2008. As a member of the EU since 2007 and therefore subject to certain economic criteria, Bulgaria has since introduced a series of measures aimed at improving its economy and reducing its public deficit.

Today enjoying relative financial stability and having one of the lowest debts on the continent, of only 16% of GDP, since its entrance into the EU, Bulgaria has continues its rapid transition, which was however restrained by the 2011 European crisis. The Bulgarian authorities have now made fiscal governance a priority and the government has implemented an austerity plan to deal with the consequences of the crisis, capping state expenditure, limiting the fiscal deficit to 3% and lowering the public debt.

The country faces many other challenges, including problems of corruption within the administration, a weak judicial system and the spreading of organized crime.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 48.5747.70e54.2757.7260.77
GDP (Constant Prices, Annual % Change) -5.50.22.53.03.7
GDP per Capita (USD) 6,4216,3567,2437,7428,192
General Government Balance (in % of GDP) -0.2-0.90.50.81.0
General Government Gross Debt (in % of GDP) 15.617.4e17.8e20.520.7
Inflation Rate (%) 2.53.0e3.8e2.92.9
Unemployment Rate (% of the Labor Force) 6.910.310.29.58.8
Current Account (billions USD) -4.34-0.470.890.33-0.91
Current Account (in % of GDP) -8.9-1.01.6e-1.5-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Traditionally an agricultural country, Bulgaria is now considerably industrialized. The country has a skilled and inexpensive workforce. Nearly a third of the population works in the industrial sector. Bulgaria's main mineral resources include bauxite, copper, lead, zinc, coal, lignite (brown coal), iron ore, oil and natural gas.

Industry still depends on heavy manufacturing sectors (metallurgical, chemical, machine building), which were developed during the socialist period. However, the most dynamic sectors are textile, pharmaceutical products, cosmetic products, and now, the mobile telephone industry and software industry.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 7.1 35.2 57.6
Value Added (in % of GDP) 5.4 30.3 64.3
Value Added (Annual % Change) 3.0 3.5 0.9

Source: World Bank - Last Available Data.

 

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Monetary Indicators 20062007200820092010
Bulgarian Lev (BGN) - Average Annual Exchange Rate For 1 USD 1.561.431.341.411.48

Source: World Bank - Last Available Data.

 

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Indicator of Economic Freedom

Score:
64.9/100
Position:
Moderately free
World Rank:
55/179
Regional Rank:
25/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Since joining the European Union, Bulgaria has experienced considerable growth of its trade, despite its large trade balance and recurring deficits. More peripheral than Romania, Bulgaria is less dependent on other European countries, which nevertheless still represent 50% of its exports and imports. The Bulgarian government has a proactive European attitude and trade remain critical to the development of the country.

Bulgarian exports go mainly to Italy, Turkey, Belgium, Greece, the United States and France. Bulgaria mainly exports semi-processed goods and unprocessed products. The country's main imports are  food products, fuel, energy and capital goods from Germany, Italy, Russia, Greece, France and Austria. The rise in energy prices has made Russia the leading supplier of Bulgaria, followed by Germany and Italy.

Bulgaria's foreign trade was indirectly affected by the global economic crisis, insofar that Bulgaria's main partner countries, which are in majority European countries, reduced their orders. The current difficulties of the EU economies further worsen this situation, although Bulgarian exports have shown resistance and they are stagnating rather than regression. The case in point was Greece, which was severely affected by the financial crisis and, therefore, strongly reduced its imports from Bulgaria. Considering the country's strengths, Bulgarian foreign trade should resume growth in 2012, depending on the economic improvement of its European partners.

 
Foreign Trade Indicators 20072008200920102011
Imports of Goods (million USD) 29,96136,90823,53925,34132,114
Exports of Goods (million USD) 18,51822,36216,31820,62027,976
Imports of Services (million USD) 4,9005,9145,0184,1694,174
Exports of Services (million USD) 6,5127,8716,8226,8357,643
Imports of Goods and Services (Annual % Change) 9.64.2-21.51.0-
Exports of Goods and Services (Annual % Change) 6.12.4-10.311.2-
Imports of Goods and Services (in % of GDP) 79.278.755.962.5-
Exports of Goods and Services (in % of GDP) 59.558.248.059.6-
Trade Balance (million USD) -10,572-12,624-5,775-3,217-
Trade Balance (Including Service) (million USD) -8,972-11,570---
Foreign Trade (in % of GDP) 138.6136.9103.9122.1-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 10.6%
Italy 9.7%
Romania 9.2%
Turkey 8.5%
Greece 7.9%
See More Countries 54.0%
Main Suppliers
(% of Imports)
2010
Russia 16.1%
Germany 11.7%
Italy 7.4%
Romania 7.0%
Greece 6.0%
See More Countries 51.9%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 10.9%
Copper, refined, and copper alloys, unwrought ...Copper, refined, and copper alloys, unwrought (excl. copper alloys of heading 7405) 6.6%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.4%
Wheat and meslinWheat and meslin 2.2%
Electrical energyElectrical energy 2.2%
See More Products 75.8%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 12.1%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.3%
Copper ores and concentratesCopper ores and concentrates 4.1%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.9%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.1%
See More Products 72.4%

Source: Comtrade, Last Available Data

 
 

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Sources of General Economic Information

Ministries
Ministry of Economy (in Bulgarian)
Ministry of Finance
Statistical Office
National Statistical Institute
Central Bank
Bulgarian National Bank
Stock Exchange
Bulgarian Stock Exchange
Search Engines
Servers
Dir
Gyuvetch.bg
Search.bg
Economic Portals
Bulgaria business portal

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Political Outline

Executive Power
President is the chief of the state and is directly elected for a 5-year term. President is the commander-in-chief of the armed forces. President nominates the Prime Minister who is elected by the National Assembly. Prime Minister as Chairman of the Council of Ministers holds the executive powers and is also the head of the government. Prime Minister nominates the Council of Ministers.The Council of Ministers is the principal organ of the executive branch. The Council of Ministers must resign if the National Assembly passes a vote of no confidence in the Council or the Prime Minister.
Legislative Power
Bulgaria has a unicameral parliament. The members of the parliament (called National Assembly) are elected for 4-year-terms by popular vote. A political party or coalition must garner a minimum of 4% of the vote in order to enter the National Assembly. Parliament is responsible for enactment of laws, approval of the budget, scheduling of presidential elections, selection and dismissal of the prime minister and other ministers, declaration of war, deployment of troops outside of Bulgaria, and ratification of international treaties and agreements. Bulgarian citizens enjoy considerable political rights.
Main Political Parties
Bulgaria has a multi-party system, where no single party generally has a chance of gaining power alone. Thus political parties work with each other to form coalition governments. However, the major political parties in the country are:
- BSP (Bulgarian Socialist Party)- socialist, draws its support from rural areas, earlier Bulgarian Communist Party;
- MRF (Movement for Rights and Freedoms)- centrist, liberal , formed mainly from the Turkish ethnic minority;
- SNM (National Movement Simeon II)- liberal, centred around the former king Simeon Saxe-Coburg;
- UtdDF (United Democratic Forces)- an alliance of anti-communist parties;
- ATAKA (Attack Coalition) - a group of nationalist parties, opposes ethnic minorities, advocates stronger ties with Russia.
Current Political Leaders
President: Rossen PLEVNELIEV (since 22 January 2012) – Independant
Prime Minister: Boyko Borisov (since July 2009) – GERB
Next Election Dates
Presidential: 2016
 

Indicator of Freedom of the Press

World Rank:
81/179
Evolution:
10 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
2/7

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

 

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