Bulgaria: country overview

23 May 2012
by Ina Dimireva -- last modified 30 May 2012

Bulgaria, a former Communist country that entered the EU on 1 January 2007, averaged more than 6% growth from 2004 to 2008, driven by significant amounts of foreign direct investment.

Year of EU entry: 2007

Member of Schengen area:No

Political system: Republic

Capital city: Sofia

Total area: 111 910 km²

Population: 7.6 million

Currency: lev

Listen to the official EU language: Bulgarian

Map of Bulgaria Located in the heart of the Balkans, Bulgaria offers a highly diverse landscape: the north is dominated by the vast lowlands of the Danube and the south by the highlands and elevated plains. In the east, the Black Sea coast attracts tourists all year round.

Founded in 681, Bulgaria is one of the oldest states in Europe. Its history is marked by its location near Europe’s frontier with Asia. Some 85% of the population are Orthodox Christians and 13% Muslims. Around 10% of the population are of Turkish origin while 3% are Roma.

The Bulgarian National Assembly (a single chamber parliament) consists of 240 members who are elected for a four-year period.

Bulgaria’s main exports are light industrial products, foods and wines, which are successfully competing on European markets.

Economy overview

Successive governments have demonstrated a commitment to economic reforms and responsible fiscal planning, but the global downturn sharply reduced domestic demand, exports, capital inflows, and industrial production. GDP contracted by 5.5% in 2009, stagnated in 2010, despite a significant recovery in exports, and grew approximately 2.2% in 2011. Despite having a favorable investment regime, including low, flat corporate income taxes, significant challenges remain. Corruption in public administration, a weak judiciary, and the presence of organized crime continue to hamper the country's investment climate and economic prospects.

Source: CIA - The World Factbook