1. Economic and Political Development of Bulgaria International Open Seminar, VUZF University 30/11/2012

2. 1989
November 10, the beginning of modern democratic reforms in the country- The „Transition„
March 1990 – Andrei Lukanov announces moratorium on external debt payment

3. 1989-1995 The Economic crisis strongly affected the country
GDP per capita
2,450 USD
1,554 USD
GDP growth rate
- 3 %
2.9 %
Inflation rate
6 %
62.1 %
Unemployment rate -
15.7%
Minimum wage
FDI inflow
90.4 m. USD
The Economic crisis strongly affected the country
Corruption is a major issue
Source: NSI

4.
February, The Hyperinflation cripples the country; Bulgaria experienced hyperinflation after a socialist party was elected in 1994
January, Mass street protests against the Government, Parliament is attacked and strikes continue until February 4th, 1997
February 12th, Stefan Sofiyanski manages a Caretaker Government
July 1st, Bulgaria implemented a currency board exchange regime that has restored macroeconomic stability

6. 2000- 2005 After the 1996 crisis the economy took the path of recovery
March, 29th 2004 – Bulgaria joined NATO
April, 25th 2005 – Bulgarian government signed the European Union Treaty of Accession
January, 1st 2007 – Bulgaria became a full member of the European Union

7. 2005-2008 Sustainable economic development (6 % average growth rate)
Increase in the construction, real estate and finance industries
The decrease of the unemployment rate lead to an increase of the household’s purchase power
2005
2008
GDP per capita
3 733 usd
6 798 usd
GDP growth rate
6,4%
6,2%
Inflation rate
5,0%
12,3%
Unemployment rate
10,1%
5,6%
Minimum wage
BGN 150
BGN 220
FDI inflow
4.3 b. EUR
10 b. EUR
Source: NSI

8.
The impact of the global financial crisis slowed down economic growth
Slow absorption of EU funding
FDI are declining due to the unfavorable global economic environment
However, innovation potential of the Bulgarian economy may bring back economic growth
2009
2011
GDP per capita
6 403 usd
7 158 usd
GDP growth rate
-5,5%
1,7%
Inflation rate
2,8%
4,2%
Unemployment rate
6,8%
12%
Minimum wage
BGN 240
BGN 270
FDI inflow
3.4 b EUR
1.8 b. EUR
Source: NSI

9. Conclusion
Bulgaria is a beautiful country, with many natural advantages: a pleasant climate, spectacular Black Sea coastline with excellent beaches, picturesque mountainous regions.
It has always been, and remains, a country of transit between Europe and Asia, which has retained a strong sense of national identity whose folklore has been enriched rather than diminished by the experience of occupying forces.
Tourism is an important industry for Bulgaria, particularly during the transition from command to market economy, where it has the potential to attract increasing amounts of foreign currency to contribute to the prosperity of the country.
The Bulgarian tourism industry is already a successful international player in global tourism, which is appropriate for a beautiful, well-resourced country with fascinating history and traditions.