Nestled at the crossroads of Europe and the Middle East, Bulgaria offers a wealth of trade and investment opportunities in a diverse and dynamic economy. Since joining the European Union in 2007, the country has made significant strides in enhancing its business environment, fostering industry strengths, and undertaking major projects that position it as a key player in the region's trade landscape.
Economic Background:
With a population of ca 6.5 million, Bulgaria boasts a resilient economy with a GDP of approximately EUR 100 billion. Since the beginning of the market reforms in 1997 and the introduction of a currency board (fixing the Bulgarian Lev to DM and then to EURO), GDP has grown to threefold in real terms. Due to its steady economic growth and outstanding macroeconomic parameters (among which second lowest Debt/GDP ratio in EU), Bulgaria is expected to join the Eurozone in 2025.
Bulgaria has a very open economy with foreign trade contributing to approximately 65% of GDP. Its main trading partners are the European Union, which accounts for around two-thirds of its trade, followed by Turkey, Serbia and Ukraine.
Industry Strengths:
Bulgaria's industry strengths are in its skilled workforce, highly competitive land and production costs, and the EU's lowest corporate and income flat taxes of 10%. The major sectors attractive to foreign investors are ICT and machine building.
The country's IT and technology industry has garnered international recognition for its innovation and talent pool. It has grown dramatically over the past decade, becoming an important part of the country’s economy. It is estimated that ICT contributes around 7% of Bulgaria’s gross domestic product (GDP) and employs around 120 thousand people.
Machine building is another major industrial sector of Bulgaria, producing a wide range of machinery and equipment for various industries such as automotive, electronics, agriculture, and construction. The sector produces ca 10% of GDP and employs ca 70 thousand people, thus playing a crucial role in the country's growing high value-added economy.
Additionally, Bulgaria's well-established agricultural sector, tourism industry, and energy projects present ample opportunities for trade partnerships and investment ventures.
Major Projects:
Bulgaria has undertaken significant infrastructure and energy projects that enhance its trade capabilities and elevate its economic profile. Noteworthy projects include the construction of highways and transportation networks that connect Bulgaria to neighbouring countries and facilitate cross-border trade. Furthermore, the country's energy projects, such as the development of renewable energy sources, natural gas pipelines, and advanced nuclear energy capacity contribute to Bulgaria's energy security and sustainability objectives. These projects not only boost infrastructure development but also open avenues for trade collaboration in key sectors.
Progress Since EU Membership:
EU membership has facilitated access to a single market of over 500 million consumers, creating opportunities for Bulgarian businesses to expand their reach and enhance competitiveness. Furthermore, EU funding programs and initiatives have supported Bulgaria's economic growth, infrastructure projects, and innovation endeavours. As a full-fledged member of EU and NATO, Bulgaria continues to benefit from the advantages of free trade, regulatory harmonization, and cooperation with other EU countries.
Trade and Investment Opportunities:
Bulgaria offers a wide range of trade and investment opportunities across various sectors. Since long, a multitude of UK companies, such as Astra Zeneca, Shell, BAT, Mott MacDonald, DS Smith, etc., have established a position on the market. From trade in goods and services to joint ventures and investment projects, the country presents a favourable environment for business growth and collaboration. Key areas of interest for trade and investment include technology, manufacturing, agriculture, tourism, and renewable energy. By exploring these opportunities and engaging with local partners, UK businesses can capitalize on Bulgaria's economic potential and establish mutually beneficial partnerships.
Conclusion:
With a strategic location on the crossroad between Europe and Asia, skilled workforce, and favourable business climate, Bulgaria serves as a gateway to economic prosperity in Southeast Europe. By tapping into the country's trade potential and leveraging its strengths, UK businesses can forge valuable connections, expand their market presence, invest in vibrant high growth companies and benefit from lucrative opportunities.
Written by Evgeni Kanev Ph.D., Managing Partner, M&A advisory Maconis LLC (maconis.com)
To help businesses make contacts in Bulgaria, we are holding our first International Online Business Mixer with the British Bulgarian Business Assocation.
In a world where connections matter more than ever, our Business Mixer lets you engage with a diverse section of businesses internationally and make meaningful connections conveniently from your desk. This is a great opportunity to learn more about businesses and trade activities, and exchange business contacts with local stakeholders.
About the British Bulgarian Business Association (BBBA)
The BBBA was launched in January 2015. It enjoys the full support from the British Embassy, and its mission is to promote business relations between the United Kingdom and the Republic of Bulgaria. At the present time it has succeeded in attracting over 230 members from all areas of British and Bulgarian Business. It serves as a platform for fostering economic and trade relations between the UK and Bulgaria, providing support and resources to businesses seeking opportunities in both markets.
Date: Wednesday 30th October 9.30am - 11.00am 
Platform: Zoom
Cost: FREE for Members. Non-Members £20.00