Confederation of

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Confederation of
Republic of
Switzerland
Bulgaria
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Recent Developments of Bulgaria
Georgi Shivarov Vice President BIA
Bulgarian Industrial Association www.bia-bg.com
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GDP growth,
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Year-end inflation rate,
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Unemployment rate,
18.00
17.88
13.52
16.27
17.5
12.2
2002
2004
2000
2001
2003
Bulgarian Industrial Association www.bia-bg.com
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Bank Loans (incl. for households)
Mln. BGN
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Recent Development Trends
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Basic economic indicators

• Seven consecutive years Bulgaria has sustainable
  positive growth of the GDP
• Bulgaria received 3 times in 2004 the new
  investment credit ratings in foreign and local
  currency
• Open economy well integrated in global economy
• Employment rate is 52.5 or 10 lower than the
  average for EU (62.5)

Bulgarian Industrial Association www.bia-bg.com
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Priority product groups (USD mln)
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Key commodities in 2004
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Key commodities in 2004
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Top 10 biggest Bulgarian partners in foreign trade
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Bilateral trade with Switzerland

• 0,9 of total export form Bulgaria to
  Switzerland and
• 17th position in world list

• 1,2 of total import form Switzerland to
  Bulgaria and
• 18th position in world list for 2004

• Export to Switzerland increases by 24,7 in
  2004 compared to 2003

• Import from Switzerland increases by 42,4
  in 2004 compared to 2003

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FOREIGN DIRECT INVESTMENT INFLOW IN BULGARIA BY
COUNTRIES IN USD MILLION (1992- 2004)
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Swiss Investments to Bulgaria
Total 330,5 M USD Switzerland ranks 11th among
the other investors
mln
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ANNUAL SALARY BY SECTORS, AVERAGE 2003 (Euro)
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FDI in Bulgaria mln.
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FDI Flows by Industry (January - December 2004)
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Investment incentives

• VAT exemption of equipment imports for investment
  projects over 5 million
• Annual depreciation rate of 30 for machinery and
  equipment 50 for software and hardware
• Opportunity to buy land through a company
  registered in Bulgaria with up to 100 foreign
  ownership
• 0 capital gains tax
• The highest bracket for personal income tax is
  only 29 (24 in 2005)
• Infrastructure subsidy for investment projects
  over 50 million

Bulgarian Industrial Association www.bia-bg.com
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Short-term risks

• Constantly rising prices of petrol and natural
  gas
• Trade balance deficit
• Decommissioning of the NPP Kozloduy blocks
• Green investments Certification of management
  and environmental systems in enterprises
• Investments in occupational safety and health at
  work

Bulgarian Industrial Association www.bia-bg.com
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Recent Developments of Bulgaria
Georgi Shivarov Vice President BIA
Bulgarian Industrial Association www.bia-bg.com