Bulgaria has undergone a significant transformation over the past three decades. It has moved from a highly centralized, planned economy to an open, market-based, upper-middle-income economy securely anchored in the European Union (EU).
Bulgaria’s EU accession in 2007 raised expectations that living standards would rapidly rise and match average EU levels in a relatively short time span. By 2022, convergence reached 62% of the average GDP per capita in the EU in purchasing power parity terms but the country remains the poorest EU member state. Following a series of external crises—including the global financial crisis, the European debt crisis, the COVID-19 pandemic and Russia’s invasion of Ukraine—foreign investment inflows dried up and reform progress slowed, dampening the pace of convergence toward average EU incomes.
To reach average EU income levels in the next 15 years, ambitious reforms and policies would be required to spur economic growth. These include addressing institutional and governance weaknesses, ensuring fair competition to boost firms’ efficiency and private sector expansion, along with investing in skills. In parallel, persistent inequalities, including income inequality and inequalities of opportunities would need to be addressed.
Bulgaria’s economy “brightened” in 2022, according to the composite index of the Bulgarian Industrial Capital Association (BICA). The annual Economy in the Light survey, which measures the legal part of the Bulgarian economy, shows that the index has reached its highest level in the history of the survey.
The share of the informal economy in Bulgaria is still high compared to the northern countries of the European Union, but is approaching the average level of the southern countries of the bloc.
The capital of Bulgaria is Sofia and the country is divided into 28 territorial provinces. More than 72% of the Bulgarian population lives in the urban areas. Bulgaria is a small open economy. The GDP composition by sector is more than 63% for services, 31% for industry and more than 5% for agriculture. The country has a stable currency, maintained by a currency board, which has pegged the Bulgarian Lev to the Euro at the rate of 1.96.
Bulgaria is also a member of the World Trade Organisation (WTO) and its main trading partners are member states of the European Union. Exports to Germany, Italy, Greece, Romania, Belgium and France account for two-thirds of overall exports to the EU. Bulgaria’s main trading partners from outside of the EU are Turkey, Russia, Serbia, and the Republic of Macedonia. Key exports include apparel, iron and steel, footwear, machinery and equipment; while imports are primarily machinery and equipment, fuels, minerals, raw materials, metals and ores, chemicals and plastics.
In general, Bulgarians are very hospitable, friendly and helpful, although they may seem more serious than most Europeans at first. Many of them speak foreign languages and appreciate foreign visitors, so they can be really good company. Bulgarians also accept foreigners well as business partners, as they consider them to be experienced and trustworthy.
More than 50% of Bulgarians perceive that numbers of immigrants in Bulgaria are quite low and do not represent a threat to their jobs. However, there are also major concerns that immigrants will compete for jobs and may contribute to crime escalation, as well as overwhelm the social security system. The impact of immigrants on national culture is not considered to be a threat to Bulgarian society and Bulgarians foster the preservation of their customs and traditions. Bulgarians have high levels of intolerance towards the Roma people, homosexuals, and immigrants to a lesser extent.
Successful business requires good knowledge of the foreign country culture. You have to be prepared to encounter different attitudes and beliefs that influence the business decisions. This section is intended to provide the basic ‘ground rules’ for doing business in Bulgaria.
Education is the fundamental right of every citizen in Bulgaria. Every child is mandatory to go to school from pre-school till the age of 16. The standard of education in Bulgaria is quite high.
The education system in Bulgaria is opening up to the world and the needs of a knowledge based economy. The teaching of foreign languages is introduced from an early age in kindergartens and schools. Most educational institutions have good computer facilities and broadband Internet connection. The academic staff is being enriched by young specialists who are educated abroad. Bulgarian universities are opening up to foreign students. Courses that are taught in English are being introduced in many universities.
The public transportation network is well developed in Bulgaria and you can reach most Bulgarian cities and villages by bus. There are bus lines that are operated by both private companies and the state, whose schedules can be found at bus stations in the major cities. International bus routes connect Bulgaria to the majority of European cities. You can buy a ticket from company offices, the carriers themselves, bus stations, tourist agencies, as well as on the internet. Bulgarian State Railways provides both passenger and freight services, connecting cities and towns across the country. Train tickets are available to buy at the railway stations and it is preferable to be at the station at least 40 minutes before the departure of the train.
Local transportation outside the capital city is usually by bus or trolley-bus. The price varies in the different cities; however, the bus or trolley ticket is rarely above 1 Lev (0.50 euro). Taxis are expensive, with a base rate of 1 Lev per journey and a distance charge of 0.79 Leva per kilometre in the capital city. In the rest of the country, where the distances travelled by taxi are shorter, prices are higher. Bulgaria has four international airports, in Sofia, Varna, Plovdiv and Burgas. Sofia airport has two terminals and can be reached from the center by bus, taxi or car.
There are no specific taboos in Bulgaria. However, Bulgarians have a fairly conservative attitude towards homosexuality. There is no legal recognition of same-sex couples in Bulgaria. Discrimination based on sexual orientation is forbidden in the areas of employment, housing, education and the provision of goods and services. Bulgarians compare favourably to other European countries in terms of racial attitudes. There are people of Cuban and African descent in the country and they may provoke more interest in regions outside the capital, Sofia.