Bulgaria: Facts & Stats

ECONOMY

Industry:

Bulgaria is an industrialized nation with a developed heavy and light manufacturing industry. In 2007 industry accounted for 31.7% of GDP. This makes industry the second largest sector of the economy after services.

Energy is one of the most important sectors in the Bulgarian economy, it accounts for 18,2% of total industrial production and employs 10.9% of the workforce in the secondary sector. Bulgaria is the primary exporter of electricity in South-eastern Europe as well as a major transit country for Russian oil and gas. Coal is the only natural fuel found in the country. The largest deposit is Maritsa Iztok in Stara Zagora Province which contains 2.9 billion tons. The rate of coal extraction is currently 27,000,000 t per annum, ranking 19th in the world and 6th in the EU. There are small deposits of oil and natural gas, mainly in the north of the country.

Industries whose market prospects show promise in the 21st century include the manufacture of electrical equipment; telecommunications equipment and services; computers, software, and information technology; medical equipment; automotive parts and service equipment; agricultural equipment; building materials; chemicals; and, to some extent, metallurgy.

Agriculture:

In 1998, the total arable land area covered 4,511,000 ha, of which 4,312,000 ha were seasonal crops and 199,000 ha were permanent crops. About 18% of the cultivated area is irrigated. The average annual agricultural growth rate was –2.1% for 1980–90 and –0.4% for 1990–2000. By 2000, agricultural output was only two-thirds of what it was in 1990. In 2000, agriculture accounted for 15% of GDP. That year agriculture engaged about 7.5% of the economically active population.

The principal grain-growing areas are the Danube tableland and southern Dobrudja. Bulgaria is a major supplier of grapes, apples, and tomatoes to Europe and the former Soviet Union. Potatoes and paprika are also important crops. Production in 1999 included (in thousands of tons): grapes, 550; apples, 150; tomatoes, 490; and potatoes, 478. About 52,000 tons of tobacco was also produced that year.

Research & Development:

Bulgaria is currently spending 0.5% of GDP, with the public sector contributing almost all of these funds. In Bulgaria, public R&D investment, as % of GDP, is already high, but private R&D investment is lacking. To promote R&D five key policy options are proposed:

• increase the share of competitive R&D funding;
• encourage public-private partnerships in R&D;
• re-evaluate the roles of the Bulgarian Academy of Science and the National Center for Agrarian Studies;
• encourage university research;
• enhance industry financed R&D.

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