Economic situation in Bulgaria

GDP at the end of Q3 (third quarter) of 2006 reached 6.7% year-on-year.

The inflation in Bulgaria was 2.2% in September 2006, but rose to 6.5% in December 2006. This last value is equal to the one for the Q4 of 2005.

Unemployment rate continued to decrease steadily throughout 2006 and at the end of Q4 reached values of 9.1%. This percentage is much lower for Sofia and major cities.

The consumption rose in 2006, this being supported by the fact that consumer bank loans increased by 4.4% (reaching EUR 2.349 billion) against Q1 of 2006.

Foreign direct investment also increased in 2006. FDI in 2006 are estimated to EUR 3.6 billion compared with EUR 2.3 billion in 2005. The share of real estate investment is 35% of the 2006 total or EUR 1.2 billion.