Innovative property investments
Investment Property in Bulgaria
Buying Guide
Economic Overview
Traumatic 90s
The Bulgarian economy is still, to a certain extent, a work in progress: it's well-nigh impossible for anyone brought up in an affluent Western society to understand the trauma experienced by Eastern European economies during the transition from communism, but simple figures can be illuminating: the fall of communism led to a contraction in the Bulgarian economy of some 40% in 1990 and 1991, accompanied by a fall by a similar percentage in the standard of living experienced by the average Bulgarian, as determined by relative purchasing power.
Pre-1990 economic levels were only reached once again as recently as 2004; this protracted delay came about thanks in large part to an economic collapse in 1996 which almost brought the country to its knees.
A bright millennium
Recent years, however, have seen a much rosier picture take shape.
The drive towards EU membership has resulted in significant financial support from the Union's banking institutions and this, coupled with natural growth in trade and industrial output (with the latter predicted to have risen in 2006 by over 15%) has led to extremely healthy growth almost across the board.
Although final figures will not be released for some time, GDP growth for 2006 is expected to exceed 6%; total GDP stood at over 71 billion USD in 2005, equalling per capita GDP of some 9,900 USD.
Unemployment, which skyrocketed immediately after the fall of the Iron Curtain, is expected to fall below 10% in 2007.
Diverse economic base
Bulgaria's historic economy was primarily agriculture-based and real industrialisation only came to the country under communism (although significant advances were made following World War I).
However, in recent years there has been a marked shift away from both agriculture and industry towards the provision of services; the service sector now accounts for just under 66% of GDP, with industry contributing 26% - still a very respectable proportion - and agriculture a mere 8%.
Key facts
- Economic collapse in 1996 has been followed by steady economic growth
- GDP growth for 2006 is expected to exceed 6%
- Total GDP stood at over 71 billion USD in 2005, equalling per capita GDP of some 9,900 USD
- Unemployment, which skyrocketed after the fall of the Iron Curtain, is expected to drop below 10% in 2007
- Agriculture now contributes a mere 8% to the economy, now dominated by a growing service sector (just under 66% of GDP) and industry (26%)
Downloadable Reports and Documents
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