In the last week of July the Bulgarian government announced plans to introduce a flat tax on personal income in 2008. The government said the new rate, which will be among the lowest in a region where flat taxes have become popular, will encourage foreign investment and help shrink the country's informal economy. Labour organisations, however, believe the new rate will, in fact, leave poorer sectors…
The EU is expected to provide billions of euros to assist the development of Bulgarian agriculture between 2007 and 2013. These funds are sorely needed by a sector which is currently battling with recent setbacks, reduced state funding and a number of new challenges brought on by EU accession. Speaking at the opening of the 15th international agricultural fair in Dobrich, the executive director…
As Bulgaria's teachers' union ends the fourth week of its strike, a political crisis looms for the government. On October 11, police cordoned off the streets of central Sofia as approximately 50,000 teachers from across Bulgaria took part in the country's largest strike for ten years. At the core of the teachers' demands are wage increases of nearly 100% by July and a greater proportion of national…
Despite a slowdown in lending in September, Bulgarian banks have so far enjoyed a profitable year. Data released by the Bulgarian National Bank (BNB) showed that the country's banks posted profits of $636m in the first nine months of 2007, a 60% increase on last year's figure. Bank assets in September 2007 totalled $38.4bn, a year-on-year increase of 34%. In addition, the bank's reserves have risen…
As access to credit becomes more difficult across Europe and the European Central Bank is forced into drastic action to stave off the threat of recession, the Bulgarian credit market has remained remarkably strong. The question remains, however, whether the credit crunch will exert a delayed effect on Bulgaria or whether the country could actually benefit from western Europe's economic problems. In…
The rollout of Bulgaria's most comprehensive WiMax network to date is a boost to businesses looking for greater media convergence, and could be the key to offering internet services to previously disconnected rural areas. However, the technology is still in its early stage, and price barriers may mean it will be some time before the service truly takes off. On February 12 Sofia-based Max Telecom…
The European Commission (EC) decided to indefinitely suspend funding to Bulgaria due to serious concerns about corruption and organised crime. The decision on July 23 to "withdraw the accreditation of the two implementing agencies concerned, namely the central financing and contracting unit and the implementing agency at the ministry of regional development and public work", as an EC report termed…
With Foreign Direct Investment (FDI) down in the first half of the year, a large portion of European funding on hold and sovereign ratings outlook on negative, concerns are growing that Bulgaria's economy faces tougher times ahead. While there are indeed serious challenges, fundamentals remain solid. FDI in Bulgaria totalled 2.078bn euros ($3.066bn) in the six months of this year, down 18% from 2.537bn…
The tourism industry in Barbados is confident it is protected against the threat of falling visitor numbers in the Caribbean, although the forecast is mixed for one of the country's largest revenue earners. In 2007, tourism accounted for $172m of the country's $1.15bn Gross Domestic Product (GDP) - almost 15% of the total, according to figures from the country's central bank. By comparison, Barbados'…
Though Bulgaria was sidetracked by the economic slowdown, the country fared better in 2008 than many of its neighbours and fellow members of the EU, maintaining higher levels of growth, seeing a fall in inflation and recording solid rates of foreign direct investment (FDI). According to official figures published by the state news agency, Bulgaria's gross domestic product (GDP) grew by 7% in the…
