Bulgaria economy

Bulgarian Industry

Video notes

Lucy

Ina

Ema

Economy in history

Energy

Mining & Minerals

Service & Tourism

Socialism era:

  • Industrialized
  • Private market became regulated
  • Tourism in the Blacksea coast and mountain regions
  • Low capital, labor productivity
  • Contracted after 1987

Post Socialism (1990s):

  • Transformed from highly centralized economy to a market based economy
  • Protests against the government, inflation 1996
  • High economic growth because of the EU expectations and the intoduction of new currency board

1888-1945:

  • State in recovery
  • Strong industralization
  • Military bound to Germany in 1930
  • After the second world war, the economy suffered a decline due to Germany’s loss

Agriculture, Forest, & Fishing

Manufacturing & Construction

Significant industry during socialist era

Slow and steady growth since early 2000s

Biochemicals and computers - majorly produced in the 1980s

The industry growth ceased - 1990s

began growing again - early 2000s

Biochemicals and computers started being majorly produced - 1980s

Food & tobacco processing suffered after the loss of Societ markets

uneven performance of individual manufacturing

2000-2008:

  • Bank landing, investments → growth
  • Contraction of GDP, increase in unemployment 2008

2010 - 2012:

  • EU debt crisis
  • increased income inequality and accelerated outward migration,

Tourism in socialist era - development of Black Sea resorts

Pandemic:

  • Economic conditions were favorable
  • Growing consumption
  • Growth expansion in the first quarter of 2020

Tourists mainly from Russia

Tourism and revenue from tourism has increased in the post-socialist era and has a steady increasing trend

Tourists now - mainly from Greece, Romania, and Germany

38th in the world for tourism

revenue from services has more than doubled since the end of socialism

Bulgaria's unemployment rate is below average

Areas impacted by the demographic emigrant crisis:

  • Healthcare
  • High education
  • High tech

97th in the world as an oil producing country

Relies mostly on imported oil and gas

Domestic production of energy - mostly coal and hydro powered sources, as well as nuclear

Energy conservation practices have developed in Bulgaria

Government corruption:

  • High levels Bribery
  • The most corrupt state in the EU
  • Far exceed the EU average
  • 85% of businesses see corruption as a problem
  • Funding of political parties
  • No punishment for the corrupted people

steady increase in renewable sources of energy

has declined since the end of socialism

Lack of modern equipment and funding → many deposits untouched

Sectors:

  • Primary: 5.1%
  • Secondary: 27.5%
  • Tertiary: 67.4%
    The increasing share of the tertiary sector is a sign for developing of the country

Accounts for less than 5% of Bulgaria’s GDP

Common deposits: iron ore, manganese ore, copper ore, chromium ore, gold ore

Trading:

  • Partners: Russia, China, Turkey, EU countries
  • Imports: copper ore, petroleum oil, medicaments, motor cars, petroleum gasses
  • Exports: oil, natural gas, copper, medicaments and wheat

Bulgaria is still one of the top mining countries in Europe

has been decreasing since the end of socialism

Main crops: wheat, corn, barley

Main produce exports: tomatoes, cucumbers, peppers

Main industrial crops: sugar beets, sunflowers, tobacco

Bulgaria is the world leader of rose oil export

Wine export - grown since the end of socialism

The fish farming industry expanded in the early 2000s

Command economy

owned by government

Less incentives to be efficient

Main problems are inefficient, shortages, less choice and freedom, bureaucratic

Examples are the Soviet Union and Cuba

More equitable distribution of resources

Price controls

Statistics Definition

click to edit

Inflation - the rate by which the average costs of services is increasing over time

Unemployment rate - the portion of the population that is not working

Labor force - the portion of the population that can work or is looking for a job

GDP per capita - GDP divided by population

Gross Domestic Product - the cost of all values produced in a country in a year

Free market economy

  • owned by private sector
  • prices are determined by supply and demand
  • likely to lead to income and wealth inequality
  • efficient and cut costs
  • Examples are Hong Kong, Singapore
  • have problems with inequality, monopoly, and market failure

Bulgaria's economic situation

The overall score for Bulgaria's economic freedom is 69.3 according to four categories: Rule of Law, Government Size, Open Markets, and Regulatory Efficiency.