Transcript Macroeconomic data

Economic and Political Development of Bulgaria
International Open Seminar, VUZF University
30/11/2012
1989
• November 10, 1989- the
beginning of modern
democratic reforms in the
country- The „Transition„
• March 1990 – Andrei
Lukanov announces
moratorium on external debt
payment
1989-1995
• The Economic crisis
strongly affected the country
• Corruption is a major issue
1989
1995
2,450 USD
1,554 USD
GDP growth
rate
-3%
2.9 %
Inflation rate
6%
62.1 %
Unemploym
ent rate
-
15.7%
Minimum
wage
-
-
FDI inflow
-
90.4 m. USD
GDP per
capita
Source: NSI
1995- 2000
• February, 1996- The
Hyperinflation cripples the
country; Bulgaria experienced
hyperinflation after a socialist
party was elected in 1994
• January, 1997- Mass street
protests against the Government,
Parliament is attacked and strikes
continue until February 4th, 1997
• February 12th, 1997- Stefan
Sofiyanski manages a Caretaker
Government
• July 1st, 1997- Bulgaria
implemented a currency board
exchange regime that has restored
macroeconomic stability
2000- 2005
• After the 1996 crisis the
economy took the path of
recovery
• March, 29th 2004 –
Bulgaria joined NATO
• April, 25th 2005 – Bulgarian
government signed the European
Union Treaty of Accession
• January, 1st 2007 – Bulgaria
became a full member of the
European Union
2005-2008
• Sustainable economic
development (6 % average
growth rate)
• Increase in the construction,
real estate and finance
industries
• The decrease of the
unemployment rate lead to an
increase of the household’s
purchase power
2005
2008
3 733 usd
6 798 usd
GDP growth rate
6,4%
6,2%
Inflation rate
5,0%
12,3%
Unemployment
rate
10,1%
5,6%
Minimum wage
BGN 150
BGN 220
4.3 b. EUR
10 b. EUR
GDP per capita
FDI inflow
Source: NSI
2009-2011
• The impact of the global
financial crisis slowed down
economic growth
• Slow absorption of EU
funding
• FDI are declining due to the
unfavorable global economic
environment
• However, innovation
potential of the Bulgarian
economy may bring back
economic growth
2009
2011
6 403 usd
7 158 usd
GDP growth rate
-5,5%
1,7%
Inflation rate
2,8%
4,2%
Unemployment
rate
6,8%
12%
Minimum wage
BGN 240
BGN 270
FDI inflow
3.4 b EUR
1.8 b. EUR
GDP per capita
Source: NSI
Conclusion
•
Bulgaria is a beautiful country, with
many natural advantages: a pleasant
climate, spectacular Black Sea
coastline with excellent beaches,
picturesque mountainous regions.
•
It has always been, and remains, a
country of transit between Europe and
Asia, which has retained a strong
sense of national identity whose
folklore has been enriched rather than
diminished by the experience of
occupying forces.
•
Tourism is an important industry for
Bulgaria, particularly during the
transition from command to market
economy, where it has the potential to
attract increasing amounts of foreign
currency to contribute to the
prosperity of the country.
•
The Bulgarian tourism industry is
already a successful international
player in global tourism, which is
appropriate for a beautiful, wellresourced country with fascinating
history and traditions.