Bulgaria: Black Sea Bonanza

Bulgaria is located in Southeastern Europe, borderingcent growth since 2000 and has begun to attract
the Black Sea, between Romania and Turkey.significant amounts of FDI.
Bulgaria's location is strategic because it is near theTourism has always been a big industry in the
Turkish Straits; Bulgaria also controls key land routescountry, and is still booming: one of the 130 hotels in
from Europe to Middle East and Asia. Bulgaria has aSlanchev Bryag, one of the most popular resorts in
population of 7,385,367 (2006) and a populationEastern Europe. The government has pledged to
growth rate of 0.86 per cent (2006), with 68.7 permaintain the fundamental economic policy objectives,
cent between 15-64 years old.i.e. retaining the Currency Board, practising sound
Backgroundfinancial policies, accelerating privatisation, and pursuing
The Bulgars, a Central Asian Turkic tribe, mergedstructural reforms. Economic growth continued in
with the local Slavic inhabitants in the late 7th century2005 and 2006.
to form the first Bulgarian state. In succeedingAgricultural output has been growing in recent years.
centuries, Bulgaria struggled with the ByzantineFarming is more important than stock-breeding. The
Empire to assert its place in the Balkans, but by theprevalence of mechanisation is higher than most
end of the 14th century the country was overrun byother Eastern European countries. There are more
the Ottoman Turks. Northern Bulgaria attainedthan 150,000 tractors, 10,000 combines, alongside
autonomy in 1878 and all of Bulgaria becameaeroplanes and other equipment.
independent from the Ottoman Empire in 1908.Industry is of great importance for the economy.
Bulgaria became a People's Republic in 1946. BulgariaBulgaria is a major producer of electricity though it is
held its first multiparty election in 1990 with the fall ofnot very rich in reserves of coal, oil and natural gas.
communism. It has moved towards democracy and aA second plant, the Belene Nuclear Power Plant with
free market economy ever since. The country joineda capacity of 2,000 MW is under construction. There
NATO in 2004 and the EU in 2007. Bulgaria acceptsis a $1.4 billion (£718 million) project for
compulsory ICJ jurisdiction.construction of an additional 670 MW for the 500
EconomyMW Maritza Iztok 1 TPP.
Bulgaria entered the European Union on 1 JanuaryIn production of steel and steel products per capita
2007. The government is committed to economicthe country is first in the Balkans. Ferrous metallurgy
reform and responsible fiscal planning. Minerals,is very important.
including coal, copper, and zinc, play an important roleProperty Market
in industry. In 1997, macroeconomic stability wasThe property market has been boosted recently by
reinforced by the imposition of a fixed exchange rateforeigners seeking additional homes. These buyers
of the lev against the German D-mark - the currencycome from right across Europe but the largest
is now fixed against the Euro, and the negotiation ofnumbers are British, encouraged by comparatively
an IMF standby agreement. Low inflation and steadycheap property and because the country is more
progress on structural reforms have improved theaccessible through low cost air travel. The future for
business environment; Bulgaria has averaged 5.1 perthis particular country is bright indeed.