Bulgaria

C

Manufacturing

In 1939 manufacturing and construction together represented about one quarter of total production; in the mid-1990s the two sectors accounted for more than 35 per cent of the country’s gross domestic product (GDP), but by 2005 this figure had dropped back to 31.6 per cent. The metalworking and chemical industries, as well as the food processing, tobacco-processing, and machinery-manufacturing enterprises, are among the newer, more productive areas. Textiles are the oldest manufacture of Bulgaria and, except for cotton goods, largely use domestic raw materials. The manufacture of building materials, including cement, brick, and glass, is well developed. Leather goods and leather and rubber footwear are well-established manufactures but are not yet equal to demand. Metallurgical and metalwork industries are largely dependent on imports of raw materials. The ores mined domestically, however, are also domestically refined and fabricated into manufactures. Machine-building and engineering industries are being expanded, especially in the light electrical equipment sector. A famous Bulgarian product is attar of roses, which is used as a base for perfume.

D

Energy

In 2003 52.06 per cent of Bulgaria’s electricity was generated in thermal plants fired by coal, lignite, and petroleum products. The country’s first nuclear power station was opened at Kozloduy in 1974, and within ten years nuclear facilities accounted for almost one third of electricity output. In December 2002 this plant was decommissioned as part of the deal intended to pave the way for EU membership. In the mid-1990s Bulgaria had an installed electricity-generating capacity of about 10.7 million kW, and by 2003 annual electricity production was some 31.75 billion kWh.

E

Currency and Banking

The monetary unit of Bulgaria is the lev of 100 stotinki (1.51 leva equalled US$1; early 2007). The lev was revalued in July 1999 so that 1,000 old leva equalled one new lev. The Bulgarian National Bank is the bank of issue and handles government funds and nationalized enterprises. All banks were nationalized in 1947 but after the reforms started in 1992, a private banking sector emerged. The crisis in the banking system in 1996 resulted in the collapse of 14 of the country’s 35 banks, including 5 owned by the state. By mid-1997 state ownership accounted for 73 per cent of the banks; foreign and private banks 11 per cent each; with the remaining 5 per cent in the process of bankruptcy or liquidation.

F

Commerce and Trade

Most Bulgarian foreign trade is with the republics of the former USSR and other Eastern European countries. Russian long-term plans are to build new transit oil pipelines carrying oil from central Asia through Bulgaria and Greece to the Aegean Sea. In the West, Italy and Germany are the main trade partners.

Exports in 2003 were valued at about US$7,540 million. The chief exports were machinery, food products, tobacco, non-ferrous metals, cast iron, leather products, and textiles. Yearly imports in the same period were valued at about US$10,901 million. The principal imports were oil, natural gas, machinery, transport equipment, steel, cellulose, and timber.

G

Labour

In 1990 sweeping changes occurred in the labour movement in Bulgaria. In February the Central Council of Trade Unions declared its independence from the Communist Party and changed its name to the Executive Committee of Independent Trade Unions. In March the National Assembly legalized strikes and the once-underground labour organization Podkrepa held its founding congress.