Bulgaria: Country and Foreign Investment
Economy and Currency
High inflation and economic mismanagement plagued Bulgaria during the 1990s as the country struggled to shake off the hangover of the collapse of the Soviet bloc. Political troubles in the Balkans and the first Gulf War also affected Bulgaria. Economic reforms were introduced in the latter part of the 1990s and the creation of a Currency Board kept inflation in check.
Bulgaria joined the European Union in 2007 and high levels of foreign investment came into the country. The country’s low tax base is aimed at encouraging business and personal economic growth. GDP per capital was USD13,800 in 2011, with GDP growth estimated at 1.7%. Industry and services make up more than 90% of the economy. Inflation was running at an estimated 4.2% in 2011.
The Bulgarian currency is the Lev (BGN), which is pegged to the Euro at EUR1 = BGN1.95583.