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INVESTMENT CLIMATE IN BULGARIA
 
Predictability


Five year average GDP growth of 5.3%;
Budget surplus, low inflation, currency peg to EUR;
90% private economy;
EU accession in 2007, NATO member;
Investment grade rating BBB+ by S&P & Fitch;
Foreign direct investment at 16.7% of GDP (EUR 4.1 bn in 2006).
 
Quality
Quality of human capital:
  - Education levels among Europe top 5%;
  - 7% of workforce has engineering degrees;
  - English language studied by 70% of students;
  - Motivated and entrepreneurial attitude.
Quality of business environment:
  - Strong institutional support for foreign   investors by IBA;
  - No restrictions to capital flows.
Quality of life:
  - Ample opportunities for all-season outdoor
  recreation;
  - Diverse cultural heritage and art activities;
  - World renown food and beverages.
 
Competitiveness
Highly qualified and engineering work force;
10% corporate tax rate;
Tax exemptions and investment incentives for qualified investment;
Among lowest operational cost in a European market economy;
Duty free trade covering markets with over 550 m customers;
61 Double Taxation Treaties and 66 Agreements on the mutual protection and promotion of foreign investment.
 
COMPARISON BETWEEN BULGARIA AND EUROPE
GDP
2006
(USD bn)
Average GDP
growth,
2004 - 2006
Average
inflation,
2004 - 2006
Corporate
tax rate, 2007
Labour costs
(USD/hour), 2007
Average wages
growth,
2004 - 2006

Bulgaria

31 5.7% 6.1% 10% 2.5 1.2%
EU-25 14,518 2.3% 2.2% 28% 24.32 1.7%
Hungary 112 4.4% 4.8% 25% 8.67 2.8%
Italy 1,854 1.0% 2.1% 33% 23.89 0.9%
Romania 115 6.7% 9.2% 16% 4.97 9.5%
Russia 979 6.8% 11.1% 24% 2.71 12.2%
Turkey 394 7.2% 8.8% 20% 2.63 0.8%
Source: Economist Intelligence Unit (EIU)
 
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