Economic Factors In Bulgaria

It is important to be fully aware of the economic climate of the country in which you plan to invest. Find out below why Bulgaria is offering an ideal investment environment.

Bulgaria, a former Communist country and a recent new member of the European Union, has experienced great recovery over recent years while the government is fully committed to further economic reform and fiscal planning.

• In 1997, macro-economic stability was reinforced by the imposition of a fixed exchange rate of the lev against the German Deutsch mark and the negotiation of an IMF standby agreement.
• Foreign property ownership legislation is in line with the rest of Europe, benefiting purchasers of investment property in Bulgaria. This will have a positive impact on prices in the future..
• Low inflation and steady progress on structural reforms have improved the business environment. Bulgaria has averaged 4% growth since 2000 and has attracted significant amounts of foreign direct investment, particularly in the property sector.
• Many large multinational corporations have established bases in the capital city of Sofia, including the likes of Porsche, Mitsubishi, Ernst & Young, Ericsson, Pricewaterhouse Coopers, Carlsberg and Johnson & Johnson, creating a strong demand for quality accommodation.
• Unemployment figures are down to an all time low at between 1 and 2%.
• As part of a 3 year agreement with the International Monetary Fund (IMF), Bulgaria received considerable financing to the tune of $860million towards stabilisation of the economy, and a further $500 million from the World Bank for various other domestic projects, further strengthening the economic climate.
• Between 2007 and 2009 Bulgaria will receive 4.6 billion euro from the EU, the highest amount ever for any accession country.
• Following considerable investment afforded Bulgaria during the late 1990s, the country has emerged as one of South Eastern Europe’s most robust economies, going way beyond expectations and moving ahead of other nations in this region.
• Figures released by the World Bank indicate GDP growth in Bulgaria averages at 4% today. This figure continues to grow and will certainly be the highest growth anywhere in Eastern Europe - significantly higher than, for example, Hungary, Poland and the Czech Republic, that are also undergoing economic reforms.
• The international community now views Bulgaria in a dramatically improved economic light and ever increasing numbers of property purchasers and investors are now doing business in Bulgaria.
• Efforts to reduce inflation have succeeded, as it now stands at close to 0%.
• The Bulgarian government is driving forward privatisation plans at a great pace.
• The World Bank director for Bulgaria & Romania has now confidently proclaimed Bulgaria as “a good place for investment”, highlighting the fact that in just three years, the country has risen from being the World Bank’s lowest rated country in this Eastern region, to being the highest but one.
• Bulgaria property prices remain encouragingly low, making it a potentially lucrative investment property arena. A luxury 2 bedroom off-plan apartment in a key location fetches between 80,000 and 100,000 euros in 2007.

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