Bulgarian Economy:
Bulgaria
| Copyright 2007 |
Bulgaria became its own country in the late 1980’s after the collapse of the COMECON system
it enjoyed with the Soviet Union and other countries under the iron curtain. After breaking away
from the Soviet Union, the economy in Bulgaria fell dramatically as its main form of trading was
with Soviet block countries, this was further exacerbated by the UN sanctions on Iraq and
Bulgaria’s neighbour Serbia which caused even more hardship.
it enjoyed with the Soviet Union and other countries under the iron curtain. After breaking away
from the Soviet Union, the economy in Bulgaria fell dramatically as its main form of trading was
with Soviet block countries, this was further exacerbated by the UN sanctions on Iraq and
Bulgaria’s neighbour Serbia which caused even more hardship.
It took six years before the Bulgarian economy saw any kind of improvement and this was only
a small one. In 1994 Bulgaria finally saw a positive impact on its economy as the yearly GDP
grew by 1.4%. After 1994 the economy improved for a year and saw inflation decrease by 66%
before the whole economy collapsed due to political mismanagement.
It was not until 1997 that real reform occurred when a package was agreed with the World
Bank and International Monetary Form which finally saw the economy stabilise in a confident
manner after nearly a decade. Since 1997 till the current day the economy has grown from
strength to strength and has seen Bulgaria forge trade and investment partners throughout
Europe.
a small one. In 1994 Bulgaria finally saw a positive impact on its economy as the yearly GDP
grew by 1.4%. After 1994 the economy improved for a year and saw inflation decrease by 66%
before the whole economy collapsed due to political mismanagement.
It was not until 1997 that real reform occurred when a package was agreed with the World
Bank and International Monetary Form which finally saw the economy stabilise in a confident
manner after nearly a decade. Since 1997 till the current day the economy has grown from
strength to strength and has seen Bulgaria forge trade and investment partners throughout
Europe.
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The economy is now growing at a rate of about 5% per year and Bulgaria has become a
member of the European Union that will see further trade with European countries to occur.
Bulgaria will move from the Lev and adopt the Euro between 2010 and 2012 which will tie the
country more closely to its European neighbours and make trade even easier.
member of the European Union that will see further trade with European countries to occur.
Bulgaria will move from the Lev and adopt the Euro between 2010 and 2012 which will tie the
country more closely to its European neighbours and make trade even easier.
