Bulgaria economy
Bulgarian Industry
Video notes
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
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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.