5 Interesting Facts About Bulgarian Economy
By TLB Contributing Financial Writer: Andrew
Bulgaria is a country that has a great culture and history. Many traders around the world seek to find out about this country because it has great prospects for business. While the foreign exchange market is not a huge sector in the country, it does not mean that it is not possible to enjoy currency exchange in the country. Anybody with a forex demo account (also known as “демо сметка форекс” in Bulgaria) can be able to learn about the trade and engage in the business from within the country. On the economic side, Bulgaria has a lot going on. This country has experienced major economic shifts since the 1990’s. Here are some 5 interesting facts about the Bulgarian economy.
Trade plays a huge role in the economy
The Bulgarian economy benefits immensely from trade. Statistics have shown that both the export and import sectors of the economy contribute to the majority of the country’s GDP. Bulgaria mainly exports clothing, machinery, equipment, and footwear among other things. As for the main imports of the country, chemicals, plastics, and raw materials account for the majority of the commodities.
There is a huge demand for skilled labor
Bulgaria has been among the poorest countries in Europe for a significant amount of time. This has resulted in poorly developed or inadequate labor. The country has been making strides but its labor market continues to be under-equipped. Emigration has also contributed to the loss of critical skills needed to develop the country.
The economy has the highest potential for growth in Europe
Ever since it embraced a free market economy, Bulgaria has experienced growth and received a lot of foreign investment. Still, the country is yet to see its full potential. There are a lot of opportunities for investment that exist in the country. Since it is also one of the poorest countries in Europe, there is a huge room for growth and development.
The Bulgarian income tax is among the lowest in the world
For over a decade, Bulgaria has had among the lowest income tax policies in the world. In Europe, Bulgaria has the lowest taxes on income owing to its flat tax rate of 10%. This is both great for human development and bad for growth. While the people are able to spend much of their income on consumption, the government could do much better with bigger tax revenues.
Bulgaria does not use the Euro
Bulgaria entered the EU market in 2007 but it is yet to start using the euro as its currency. The Bulgarian currency, the lev, is still used in the country and it is the only other currency in the EU used alongside the euro. There are plans to shift to the euro but so far, nothing substantial has happened towards that end. The lev is by itself a key currency in eastern Europe.
There are indeed many other interesting details about the Bulgarian economy. Having such a huge potential for development, Bulgaria presents a great opportunity for investment. The economy has been growing in the recent years and economic pointers show that the trend is set to continue.
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