Is Bulgarian economy collapsing?

The economic status of any particular market is a vital component to consider when setting up administrative offices in such a market since it determines its suitability as an investment destination. Therefore, foreign businesses that aspire to open offices in Bulgaria are privileged to enter into a market that has witnessed a steady growth of its economy over the years, especially after the end of the communist era that had a negative impact its economic growth.

According to reports by the European Union, the Bulgarian economy grew by 0.6 percent and 0.9 percent in 2012 and 2013 respectively. The same reports indicate that this economy will grow by 1.7 percent in 2014, 2.9 percent in 2015, and 3.4 percent in 2016. Economic analysts argue that this steady growth of the Bulgarian economy was facilitated by exports and recovery in the European Union. In addition to this, the current Bulgarian government has a strong commitment towards stimulating economic growth through social protection for the poor and encouraging investment. Moreover, Bulgaria is one of the economies across the globe that consistently maintain low inflation rate. For the last five years, this economy has maintained a low inflation rate of 5 percent and below. For example, in 2014, the inflation rate is capped at 1.6 percent. This in turn has seen this country maintain low interest rates. For example, between 2005 and 2014, the average interest rate stood at 1.72 percent. Therefore, foreign businesses setting up their administrative offices in Bulgaria can take advantage of the low interest rate and low inflation rate.

Apart from focusing on economy growth, the Bulgarian government is also committed to economy development, especially with respect to technology and other infrastructural developments. Recent World Bank reports points to the fact that this country is collaborating with the World Bank in order to upgrade its road infrastructure. In this case, the Bulgarian government point of focus is to increase accessibility to different areas and enhance service delivery. For instance, in the already completed phases, the travel time between various destinations has reduced considerably. This implies that businesses that set up their administrative offices in Bulgaria will have the opportunity to access a wider market in this economy.

Speaking from a general perspective, Bulgaria has a relatively stable economic environment that is favorable for business growth. Notably, the Bulgarian economy has withstood different challenges over the last 20 years. In the 1990s, this economy was set on a growth path and ever since, it has remained stable despite the political challenges during this period. In a more recent case, Bulgaria was among the least affected economies by the 2007/08 economic crisis that shook many economies within the European Union and other parts of the globe. Additionally, the Bulgarian economy remained relatively stable amid the Eurozone crisis in early 2009, which had adverse effects on countries such as Greece, Ireland, Spain, Portugal and Cyprus. With this in mind, this economy remains as a destination of choice with respect to foreign companies seeking to invest in Europe.