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The section presents figures and tables for Business fact sheet and real estate sector.
Business Fact Sheet
Political and economic data
- Territory - 110,994 sq km
- Population - 7.85 million
- GDP, 2003 - $ 19.9 billion
- Political system: parliamentary republic
- Stable political environment & low country risk
- EU member since January 2007; NATO member since May 2004
- Consistent record of macroeconomic stability
- 2003 real GDP growth of 4.3%
- 2003 year-end inflation of 2.3%
- Strategic geographic position as a bridge between Europe and Asia
- Highly educated and skilled work force
- 2nd in international IQ tests (MENSA International)
- Significant percentage of English speakers
- Europe's most competitive wage levels
- Monthly average gross salary of € 149
- Free movement of capital
- No restrictions on after-tax repatriation of profits
- Free trade opportunities within a market of over 550 million consumers
The next graph shows the foreign direct investments in Bulgaria:
Major investment incentives
- Corporate tax rate - 19.5% (down to 15% in 2005) and 0% in areas of high unemployment
- VAT exemption for imports for investment projects over € 5 million
- Annual depreciation rate of 30% for machinery & equipment & 50% for software and hardware
- Substantial asset discount compared to the rest of Europe
- Opportunity to buy land through a company registered in Bulgaria with up to 100% foreign ownership
- Institutional support for priority investment projects
- Adoption of International Accounting Standards
- 51 treaties for avoidance of double taxation
- 55 agreements on mutual protection and promotion of foreign investment
General macro-economic indicators for Bulgaria for the period between 2000 and 2005
| General economic indicators |
2000 |
2001 |
2002 |
2003 |
2004 |
2005E |
| GDP (EUR bn) |
13.7 |
15.2 |
16.5 |
17.6 |
19.4 |
21.1 |
| GDP growth (%) |
5.4 |
4.1 |
4.9 |
4.5 |
5.6 |
5.2 |
| GDP per capita (EUR) |
3.274 |
3.704 |
4.109 |
4.398 |
4.901 |
5.329 |
| Population (m) |
8.2 |
8.0 |
7.9 |
7.8 |
7.7 |
7.7 |
| Unemployment (eoy, %) |
18.0 |
17.9 |
16.3 |
13.5 |
12.2 |
10.6 |
| Average monthly gross wage (avg, EUR) |
115 |
123 |
132 |
140 |
154 |
162 |
| Export (EUR m) |
5.253 |
5.714 |
6.063 |
6.668 |
7.994 |
9.611 |
| Import (EUR m) |
6.533 |
7.493 |
7.755 |
8.868 |
10.712 |
13.010 |
| FDI (EUR m) |
1.103 |
903 |
980 |
1.851 |
2.278 |
2.200 |
| FDI (% of GDP) |
8.1 |
5.9 |
5.9 |
10.5 |
11.7 |
9.5 |
| Inflation (avg, %) |
10.3 |
7.4 |
5.8 |
2.3 |
6.1 |
4.4 |
| Budget deficit (% of GDP) |
-1.0 |
-0.9 |
-0.7 |
0.0 |
1.7 |
-0.3 |
| Government debt (% of GDP) |
85.8 |
69.9 |
55.9 |
48.4 |
43.5 |
41.0 |
| EUR/BGN exchange rate – pegged at |
1.95583 |
1.96 |
1.96 |
1.96 |
1.96 |
1.96 |
| USD/BGN exchange rate (annual avg) |
2.12 |
2.18 |
2.08 |
1.73 |
1.57 |
1.56 |
| Base interest rate (avg, %) |
3.97 |
4.59 |
4.00 |
2.70 |
2.60 |
n.a. |
Sources: Bulgarian National Bank, National Statistics Institute, Employment Agency, Ministry of Finance ;Estimates by Agency for Economic Analysis and Forecasts (as of 29.08.2005), InvestBulgaria Agency and Economist Intelligence Unit
Comparative table between economical indicators for Bulgaria and other European countries
| Bulgaria and other European countries |
GDP
(USD bn),
2004 |
Average GDP
growth,
2003 - 2005E |
Average
inflation,
2003 - 2005E |
Corporate
tax rate,
2005 |
Labour costs
(USD/hour),
2005E |
Average labour
cost growth,
2004 - 2006E |
| Bulgaria |
24 |
5.3% |
4.3% |
15% |
1.1 |
2.33% |
| Italy |
1,678 |
0.5% |
2.3% |
33% |
21.4 |
0.65% |
| Turkey |
302 |
6.5% |
14.0% |
33% |
2.4 |
0.85% |
| Russia |
582 |
6.9% |
12.5% |
24% |
1.7 |
5.70% |
| Romania |
70 |
6.2% |
12.0% |
16% |
1.4 |
5.59% |
| Greece |
206 |
4.1% |
3.4% |
30% |
13.7 |
1.46% |
| EU-15 |
12,094 |
2.0% |
1.8% |
n.a. |
28.3 |
0.90% |
Source: Economist Intelligence Unit, Eurostat
Bulgaria factsheet: Real estate sector
Real Estate Market Index (REMI) - the national index for real estate sector indicating the increase in property sales in Bulgaria.
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