A growing economy full of potential

Since the fall of communism and the break-up of the COMECON economic system, Bulgaria’s economy has been through turbulent times. The transition from a socialist to a market-oriented economy has been beset by instability, structural fragility, a lack of public confidence in economic reforms and high levels of unemployment.

However, recent developments suggest that Bulgaria is making the necessary steps required for full economic recovery and is now becoming an increasingly attractive market once again. When joining the EU in 2007 Bulgaria's ecconomy soared until the world crisis  in 2008, the country did not realise the effects imediately and will continue to manage the ecconomy with a new government and expect the first 2 quarters of 2010 to be the "worst over" followed by a long sustained recovery. Bulgaria is currently seeking to join the EU currency in 2012 and is trying very hard to meet all the conditions to make that change.

Key Indicators for Bulgaria (December 2009)

History

The 1996–97 period saw Bulgaria carry out a series of pro-reform policies supported by the introduction of a currency board regime – agreed to with the IMF and the World Bank. Several rounds of mass privatisation – which began in January 1996 and continued in spring 1997 – and a three-year $800 million loan granted by the IMF helped stabilise the economy and finally moved it forward.  The election of the Union of Democratic Forces (UDF) to government in April 1997 brought about the following reform policies:

• privatisation or liquidation of state-owned institutions
• liberalisation of the agricultural policies and the development of a land market
• improvement of the country’s social insurance programmes
• introduction of anti-crime and corruption policies including the introduction of contract enforcement