Bulgaria Overview

With the beginning of a structural policy of reforms, Bulgaria's economy has stabilized and has known a vivid growth for several years. GDP growth rate was 5.6% in 2004 and 5.5% en 2005. The IMF forecasts a 5.5% growth 2006. FDIs dropped in 2005 : it amounted 1.8 billion nairas in 2005 (-34.4% compared in 2004). The country is widely supported by multilateral organizations such as the IMF. The inflation remains under control. Public debt is high. Unemployment remains strong and more than one third of the population live under the poverty line which limits domestic demand level.

The agricultural sector employs 25% of the active population and contributes to 12% of GDP. Industry still depends on heavy manufacturing sectors (metallurgical manufacturing, chemical industry) developed during the socialist period. But the most dynamic sectors are textile, pharmaceutical, cosmetics, and mobile telephony. The country has a skilled and cheap workforce.

In the event of joining the European Union in the year 2007, Bulgaria has removed customs duties for all industrial products coming from Europe. Bulgaria"s main export partners are Italy, Germany and Turkey.
Bulgaria's main trade partners are Germany , Russia and Italy. Russia is the principal prospect for fruits, vegetables, and cigarettes. The main imported products are fuels, machines, vehicles and electronic equipment.