Economic and Political Development of Economic and Political Development of BulgariaBulgaria

International Open Seminar, VUZF UniversityInternational Open Seminar, VUZF University

30/11/201230/11/2012

19891989• November 10, 1989- the

beginning of modern democratic reforms in the country- The „Transition„

• March 1990 – Andrei Lukanov announces moratorium on external debt payment

19891989--199519951989 1995

GDP per capita

2,450 USD 1,554 USD

GDP growth rate

- 3 % 2.9 %

Inflation rate

6 % 62.1 %

Unemployment rate

- 15.7%

Minimum wage

- -

FDI inflow - 90.4 m. USD

• The Economic crisis strongly affected the country

• Corruption is a major issue

Source: NSISource: NSI

1995- 20001995- 2000• February, 1996- The

Hyperinflation cripples the country; Bulgaria experienced hyperinflation after a socialist party was elected in 1994

 • January, 1997- Mass street

protests against the Government, Parliament is attacked and strikes continue until February 4th, 1997

• February 12th, 1997- Stefan Sofiyanski manages a Caretaker Government

• July 1st, 1997- Bulgaria implemented a currency board exchange regime that has restored macroeconomic stability

2000- 20052000- 2005• April, 25th 2005 – Bulgarian

government signed the European Union Treaty of Accession

• January, 1st 2007 – Bulgaria became a full member of the European Union

•After the 1996 crisis the economy took the path of recovery

•March, 29th 2004 – Bulgaria joined NATO

2005-20082005-20082005 2008

GDP per capita 3 733 usd 6 798 usd

GDP growth rate 6,4% 6,2%

Inflation rate 5,0% 12,3%

Unemployment rate 10,1% 5,6%

Minimum wage BGN 150 BGN 220

FDI inflow 4.3 b. EUR 10 b. EUR

• Sustainable economic development (6 % average growth rate)

• Increase in the construction, real estate and finance industries

• The decrease of the unemployment rate lead to an increase of the household’s purchase power

Source: NSISource: NSI

2009-20112009-20112009 2011

GDP per capita 6 403 usd 7 158 usd

GDP growth rate -5,5% 1,7%

Inflation rate 2,8% 4,2%

Unemployment rate 6,8% 12%

Minimum wage BGN 240 BGN 270

FDI inflow 3.4 b EUR 1.8 b. EUR

• The impact of the global financial crisis slowed down economic growth

• Slow absorption of EU funding

• FDI are declining due to the unfavorable global economic environment

• However, innovation potential of the Bulgarian economy may bring back economic growth

Source: NSISource: NSI

ConclusionConclusion• The Bulgarian tourism industry is

already a successful international player in global tourism, which is appropriate for a beautiful, well-resourced country with fascinating history and traditions.

• Bulgaria is a beautiful country, with many natural advantages: a pleasant climate, spectacular Black Sea coastline with excellent beaches, picturesque mountainous regions.

• It has always been, and remains, a country of transit between Europe and Asia, which has retained a strong sense of national identity whose folklore has been enriched rather than diminished by the experience of occupying forces.

• Tourism is an important industry for Bulgaria, particularly during the transition from command to market economy, where it has the potential to attract increasing amounts of foreign currency to contribute to the prosperity of the country.