Until 1947 Bulgaria was predominantly agricultural, with virtually no heavy industry. In Communist Bulgaria following World War II, all industrial enterprises were nationalized and operated under a series of five-year economic plans, modelled after the Soviet system, with financial aid from the USSR. Heavy industry was the government’s highest priority. Privatization and other market reform measures were begun after 1992. Since the mid-1950s new resorts have been developed along the Black Sea, partly by private individuals, in an attempt to attract foreign visitors. The pace of privatization has been erratic and characterized by delays, inefficiencies, and corruption, and plans have been announced to find buyers for large enterprises still under state control. The enterprises include pharmaceutical and chemical manufacturers, the national air carrier, a tourist resort on the Black Sea, the monopoly-holding telecommunications company, and the largest oil-refinery in the region. A radical plan was also unveiled to liquidate the enterprises should they remain unsold after 15 months. In 2003, the country’s GNP was US$16,637 million, equivalent to US$2,130 per head (World Bank figures). In 2003 exports were valued at US$7,540 million although imports amounted to US$10,901 million.

A. Agriculture, Forestry, and Fishing

Bulgarian Tobacco

Bulgarian Tobacco
Tobacco is one of the chief crops of Bulgaria. Harvested tobacco is hung in sheds to dry before it is sent to market. By the early 1990s, some 60,000 tonnes of tobacco were harvested each year.
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Collectivization of agriculture in Bulgaria was begun in the early 1950s; in the late 1980s most farmland was under the control of the country’s collective and state farms. Private holdings were limited to a small size, but accounted for more than one quarter of total agricultural output. Land reforms in the early 1990s redistributed land that had been collectively farmed during the communist era and fallen into disuse during the period of transition. The policy of returning the land to its pre-collective owners in small areas averaging less than 2.5 hectares, with only a small number receiving proper titles to the land, precluded leasing to professional farmers and the establishment of a market in land. Further reforms are proposed to allow leasing of unlimited areas of land and the participation of foreigners in bidding for leases at auction. The chief crops are wheat, rye, corn, barley, oats, cotton, tobacco, grapes, tomatoes, sugar beet, potatoes, and cabbage. In 2004 some 3.30 million tonnes of wheat, 1,400,000 tonnes of corn, and 60,000 tonnes of tobacco were harvested. In 2003 the livestock population included some 19.1 million poultry, 2.07 million sheep, 1.03 million pigs, and 668,311 cattle.

The principal Bulgarian timber areas are in the vicinity of the Rila, Rhodope, and Balkan mountains. In the early 1990s about 3.5 million cu m (124 million cu ft) of timber were produced each year.

The fishing industry, which began to expand in the 1960s and 1970s, produced a catch of about 8,140 tonnes in 2001 (in 1980 it had been 126,412 tonnes). Canning and processing plants are located at Varna and Burgas, on the Black Sea coast.

B. Mining

Coal furnishes the bulk of Bulgaria’s mineral production. Total annual coal production was about 25.8 million tonnes in 2002. Oil was discovered in 1951; in 2002 about 365,250 barrels of crude oil were produced. Production of iron ore was about 120,000 tonnes in 2003. Copper, zinc, lead, and natural gas are also commercially exploited.

C. Manufacturing

In 1939 manufacturing and construction together represented about one quarter of total production; in the mid-1990s the two sectors accounted for more than 35 per cent of the country’s gross domestic product (GDP), but by 2003 this figure had dropped back to 30.7 per cent. The metalworking and chemical industries, as well as the food processing, tobacco-processing, and machinery-manufacturing enterprises, are among the newer, more productive areas. Textiles are the oldest manufacture of Bulgaria and, except for cotton goods, largely use domestic raw materials. The manufacture of building materials, including cement, brick, and glass, is well developed. Leather goods and leather and rubber footwear are well-established manufactures but are not yet equal to demand. Metallurgical and metalwork industries are largely dependent on imports of raw materials. The ores mined domestically, however, are also domestically refined and fabricated into manufactures. Machine-building and engineering industries are being expanded, especially in the light electrical equipment sector. A famous Bulgarian product is attar of roses, which is used as a base for perfume.

D. Energy

In 2002 48.08 per cent of Bulgaria’s electricity was generated in thermal plants fired by coal, lignite, and petroleum products. The country’s first nuclear power station was opened at Kozloduy in 1974, and within ten years nuclear facilities accounted for almost one third of electricity output. In December 2002 this plant was decommissioned as part of the deal intended to pave the way for EU membership. In the mid-1990s Bulgaria had an installed electricity-generating capacity of about 10.7 million kW, and by 2002 annual electricity production was some 32.71 billion kWh.

E. Currency and Banking

The monetary unit of Bulgaria is the lev of 100 stotinki (1.5079 leva equalled US$1; early 2005). The lev was revalued in July 1999 so that 1,000 old leva equalled one new lev. The Bulgarian National Bank is the bank of issue and handles government funds and nationalized enterprises. All banks were nationalized in 1947 but after the reforms started in 1992, a private banking sector emerged. The crisis in the banking system in 1996 resulted in the collapse of 14 of the country’s 35 banks, including 5 owned by the state. By mid-1997 state ownership accounted for 73 per cent of the banks; foreign and private banks 11 per cent each; with the remaining 5 per cent in the process of bankruptcy or liquidation.

F. Commerce and Trade

Most Bulgarian foreign trade is with the republics of the former USSR and other Eastern European countries. Russian long-term plans are to build new transit oil pipelines carrying oil from central Asia through Bulgaria and Greece to the Aegean Sea. In the West, Italy and Germany are the main trade partners.

Exports in 2003 were valued at about US$7,540 million. The chief exports were machinery, food products, tobacco, non-ferrous metals, cast iron, leather products, and textiles. Yearly imports in the same period were valued at about US$10,901 million. The principal imports were oil, natural gas, machinery, transport equipment, steel, cellulose, and timber.

G. Labour

In 1990 sweeping changes occurred in the labour movement in Bulgaria. In February the Central Council of Trade Unions declared its independence from the Communist Party and changed its name to the Executive Committee of Independent Trade Unions. In March the National Assembly legalized strikes and the once-underground labour organization Podkrepa held its founding congress.

H. Transport

Bulgaria is largely dependent on railways for transport, with about 4,318 km (2,683 mi) of track in use as of 2002. The country is also served by about 37,077 km (23,039 mi) of roads. A major event in the development of transport in Bulgaria was the opening of the Ruse-Giurgiu road-and-rail bridge over the River Danube in 1954; it is the chief bridge of its type connecting Bulgaria and Romania. In the mid-1990s there was a ratio of 4.7 people per vehicle.

The River Danube is a major artery of commerce. Of the dozen Danube ports, Ruse, Svishtov, Lom, and Vidin have the greatest importance. Much of the Bulgarian freight and passenger traffic uses the Danube and the Black Sea. The port of Burgas on the Black Sea, one of the few profitable state-owned industries, is expected to become the main transit point to service the increased traffic resulting from the Caspian oil industry and the developing economies of central Asia, and there are plans to develop new quays and terminals over the next 18 years.

Balkan Bulgarian Airlines, the national airline, serves the major cities of the country, including Vrazhdebna International Airport at Sofia.

I. Communications

In the mid-1990s about 2.9 million telephones were in operation in Bulgaria, and some 5 million radios were in use in 1997. Television started on an experimental basis in 1954 and was officially inaugurated in 1959. By the mid-1990s more than 20 television stations were in operation, and it was estimated that in 2000 3.7 million television sets were in use.

Until recently, all Bulgarian periodicals were published either by the government or by government-approved organizations, and reflected government policy. In 1999 52 dailies were being published. The leading dailies early in 1992 were Workers’ Cause, formerly the official organ of the Communist Party, and Democracy, both published in Sofia.