ECONOMY
Bulgaria has a strong agricultural sector, in which the main products are wheat, maize, barley, sugar beet, grapes and tobacco, although its relative importance has declined in recent years. Attar (oil) of roses is exported from the Valley of Roses near Kazanluk to perfumers across the world. The country is also one of the world’s leading wine exporters. Mineral deposits include coal, iron ore, copper, manganese and zinc. Coal, supplemented by gas supplied by pipeline from the Russian Federation, meets most of the country’s energy requirements. Manufacturing industry is concentrated in engineering, metals, chemicals and petrochemicals and, more recently, electronics and biotechnology. Bulgaria is a major producer of bulk carriers and forklift trucks. In the service sector, tourism and road transport are both important foreign exchange earners. In general, Bulgaria has suffered the usual problems experienced by centrally planned economies adjusting to market conditions. Successive governments have followed the path taken by other former Communist governments, under which most of industry and agriculture was privatized, trade liberalized and reforms of the fiscal and banking systems instituted. However, some key privatizations (tobacco, telecoms, banking) have already - or are - experiencing difficulties, possibly threatening the stability of the government. The value of the Bulgarian Lev was fixed to the Deutschmark by the currency control board created in 1997; it is now linked to the Euro. The economy grew at a healthy 4.3 per cent in 2004; inflation has been brought down to single figures. In 1990, Bulgaria joined the IMF, which has had a major influence on the country’s economic policy, along with the World Bank and the European Bank for Reconstruction and Development. Bulgaria has applied to become a full member of the EU and expects to join in 2007. The Russian Federation, Germany, Italy and Greece are Bulgaria’s major trading partners. |
