Bulgaria

A Country with Fertile Lands and a Long History: Bulgaria

Bulgaria, with its fertile plains and valleys, is surrounded by Romania to the north, Yugoslavia to the west, the Black Sea to the east, and Greece and Turkey to the south. The Balkan Mountains divide Bulgaria into north and south. The Danube River, which forms the Romania-Bulgaria border, is the country's most important river. The Maritsa River is among its most significant waterways. In short, this verdant Balkan country, known for its rivers, fertile lands and geography, is equally renowned for its historical character and for having hosted numerous civilizations over centuries. This period, beginning in the Neolithic age, gave way to the Thracians, Greeks and Romans in subsequent centuries. Later, with the emergence of the Bulgarian State, the country entered the Imperial period. The First Bulgarian Empire, while hosting Slavic peoples in the Middle Ages, became an important center of culture and commerce for them. After the collapse of the Second Bulgarian Empire, a new period began in the Balkans lasting 500 years, and these lands came under Ottoman rule. With the Russo-Turkish War of 1878, the Third Bulgarian State was established. Bulgaria, experiencing numerous disputes with its neighbors, formed an alliance with Germany during World War II. As part of the Eastern Bloc in 1946, Bulgaria was a single-party socialist state. In 1989, when the ruling Communist Party permitted multi-party elections, Bulgaria entered democracy and the market economy.

With the collapse of the Eastern Bloc, Bulgaria lost its market in the Soviet Union and saw its national income decline by 70 percent, facing a severe economic crisis.

Bulgaria attempted to overcome this difficult period through conservative economic reform packages and, unlike Poland and Russia, avoided implementing shock economic packages. After transitioning to a market economy, Bulgaria failed to successfully implement reforms, and the economic crisis beginning in the 1990s caused the Lev to lose value against the Dollar. As a result, external debts could not be repaid, and significant disruptions emerged in domestic and foreign trade. By February 1997, with increased government spending, rising interest rates, depreciation of the Lev and particularly the approach of elections, the country entered a period of hyperinflation. Looking generally at Bulgaria's economic policy structure, its private sector is moderately developed and open to external markets. In July 1997, agreements were signed with the IMF, a currency board was established and the Lev was pegged to the Deutsche Mark. Macroeconomic stability was achieved and growth resumed in 1998. Looking at the Communist period, Bulgaria's basic source of income was built on agriculture. The agricultural sector was supported substantially by heavy industry, armaments and steel sectors. However, with the end of the Communist period, facilities inherited from the Communist era became outdated, failed to meet EU standards and lacked productive working conditions, so these sectors could not keep pace with a competitive environment. Moreover, agriculture lost its former importance, and as young people emigrated particularly to European countries, the country's youth population declined. Thus, rather than producing agriculture, the country turned to imports.

From Communism to EU Membership

Bulgaria joined the EU in 2007. With EU membership, economic performance increased and average GDP growth between 2004-2007 was 6.1 percent. Thanks to investments and capital flowing into the country, this rate reached 30 percent in 2008. Looking generally at Bulgaria's economic policy structure, its private sector is moderately developed and open to external markets. According to some data, Bulgaria's economy reached 77th place by purchasing power in 2015. Looking at the present day, the most important sectors forming the foundation of the economy are energy, mining, metallurgy, agriculture, machine industry and tourism.

World Leader in Rose and Rose Oil Production

Bulgaria leads the world in rose and rose oil production. 70-80 percent of the world's rose oil is produced there. Especially roses grown in the Kazanlak region are used in producing rose oil, which is a component of most perfumes. It is known that 1,000 rose flowers are needed to produce 1 gram of rose oil, which is used in the creation of the most popular perfumes. Bulgaria's main trading partners include Germany, Russia, Italy, Greece, Romania and Turkey. Products it particularly exports include mineral fuels, iron and steel, machinery, textiles and footwear. Products it imports include chemicals, plastics and metals. Turkey is among Bulgaria's five main trading partners. Turkey's share in Bulgaria's foreign trade is approximately 8 percent. In recent years, our exports to Bulgaria have reached USD 1.7 billion and our imports USD 2.3 billion, with total bilateral trade volume reaching approximately USD 4 billion. Turkish investments in the country are around USD 2 billion and approximately 1,500 Turkish companies operate in Bulgaria. At the same time, the value of projects completed and ongoing by Turkish contracting firms has reached USD 1.2 billion. With Bulgaria's accession to the EU in 2007, the Common EU Customs Tariff is applied in trade with third countries. In trade of industrial products between Bulgaria and Turkey, within the scope of the Customs Union, no customs duty is charged. While tariffs applied in imports of industrial products under the Customs Union Agreement between Turkey and Bulgaria are set to zero, other tax applications on imports are in effect. While tariffs applied in imports of industrial products under the Customs Union Agreement are set to zero, other tax applications on imports are in effect. Special Consumption Tax is charged at different rates for petroleum products, tobacco products, alcohol and alcoholic beverages, coffee and automobiles.

About Bulgaria

• Bulgaria is one of Europe's oldest countries and was even established before the Roman Empire. • The Varna Necropolis Treasure, estimated to be approximately 6,000 years old, contains the world's oldest gold. • Bulgaria's national instrument is the gaida. Scotland, Ireland and Bulgaria are the only 3 countries in the world that use the gaida in their traditional music. • In 1972, the world's oldest gold treasure was discovered near Varna. • Sofia is Bulgaria's capital and economic center. Sofia was founded 7,000 years ago at the intersection of two important trade routes. It is also Europe's second oldest city. • In 1976, UNESCO declared the ancient Bulgarian calendar to be the most accurate calendar in the world. • Bulgaria has the world's largest IMAX 3D cinema.

Source https://www.cokilgincbilgiler.com https://www.ekonomi.gov.tr