Bulgaria, a former Communist country striving to enter the European Union in 2007, has experienced great recovery over recent years and the government is fully committed to economic reform and responsible fiscal planning.

The main components of the reform program continue to be restructuring of the state-owned enterprises, the financial and banking sector reform, the liberalization of agricultural and energy sectors, the adoption of the health insurance system, the pension system reform, and the administrative reforms in the public sector.

Tourism is the fastest growing sector in the Bulgarian economy with excellent opportunities for foreign investment with high return on investment ratios. Other sectors having strategic position in the Bulgarian economy are mechanical and electrical engineering and telecommunications.

Find out here why Bulgaria is offering an ideal environment in which to invest:

• 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.

• A bill was passed by the government in April of 2005 laying out the intention of foreign property ownership legislation in line with the rest of Europe and changes will be enforced in 2007 with EU membership. This will be of benefit to the foreign investor, making the buying process easier and it 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.

• 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. On top of this initial allocation, the World Bank has continued to subsidise Bulgarian projects to the tune of $1.54 billion.

• With the 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 between 1998 & 2004 as between 4 and 5%. These figures continue to grow, as in 2004, growth had reached 5.3% and 2005/2006 figures suggest growth at 6%. This will certainly be the highest growth anywhere in Eastern Europe and significantly higher than, for example, Hungary, Poland and the Czech Republic, who are also undergoing economic reforms.

• The international community now views Bulgaria in a dramatically improved economic light.

• 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.

• After ongoing efforts, the World Bank director for Bulgaria & Romania has now confidently claimed 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.