Economy development
In Bulgaria history of economy can be distinguished, such factors as the growth of small and medium-sized enterprises, and the changes in the agricultural economy. A decrease of importance of agriculture is a characteristic phenomenon confirming all structural changes in the Bulgarian economy. The participation of this sector in added value of 2005 was 7.7% [12.5% in 2002]. The regress of the income generated by agriculture is compensated by the growth of added value generated by services and industry sectors. The participation of services in the added value in 2005 was 63.9% [59.7% in 2002], and the participation of industry – 28.4% [27.8% in 2002]. A quickly developing sector of small and medium size enterprises is an important segment of the economy. Its participation in the GNP in 2005 was over 50%, and over 70% in employment. Effective struggle with inflation within restrictive monetary and fiscal policy resulted in a fast reduction of interest rates. A relatively quick overcoming of the 1996–1997 crisis was possible thanks to the stabilizing currency board mechanism, foreign credit aid, great progress in introduction of structural reforms and acceleration of the privatization processes.
In 2007 the Bulgarian economy had growing up time in connection with accession to the European Union. GDP was at 6% and still it is predicted to be in near future on the same level. Driver of growth are investments, and the dynamics of individual consumption, which is in the vicinity of the dynamics of GDP. The consequence of the revitalization is systematic drop in the unemployment rate to around 8%, and the sharp increase in prices of consumer goods and services approximately on level 6-7%. The increased of gross domestic product is reflected in data on current account, which record a significant deficit (about 15% of GDP). Significant feature of Bulgaria is a very favorable situation in public finances, where the central budget recorded a surplus high, and low nominal interest rates.In the coming years is expected to maintain positive trends in the economy. Engine of economic growth will be investment, the current account continues to remain a huge deficit, and inflation will be more than 5% per annum.
