Part 136

Economy - overview: One of the poorest countries of central Europe, Bulgaria has slowly continued the process of moving from its old command economy towards a market-oriented economy. Slow advancement on economic reforms pitched the economy into crisis in 1996, marked by a banking system in turmoil, a depreciating currency, inflation of 311% and contracting production and foreign trade. Foreign exchange reserves dwindled to extremely low levels ($518 million), while dramatically hiked interest rates added to the domestic debt burden and stifled growth. GDP fell by 10% in 1996, after experiencing 2.6% growth in 1995. Privatization of state-owned industries stagnated, although the first auction of a mass privatization program was undertaken in late 1996. Lagging progress on structural reforms led to postponement of IMF disbursements under a $580 million standby loan agreed to in July. In November 1996, the IMF proposed a currency board as Bulgaria's best chance to restore confidence in the lev, eliminate discretionary spending, and avoid hyperinflation. The government has pledged to sell some of the country's most attractive state assets to the highest foreign bidders in 1997. The Bulgarian economy is projected to have another year of negative growth (minus 5%), and inflation near 700% in 1997, assuming introduction of a currency board in July of 1997.

GDP: purchasing power parity - $39.9 billion (1996 est.)

GDP - real growth rate: -10% (1996 est.)

GDP - per capita: purchasing power parity - $4,630 (1996 est.)

GDP - composition by sector: agriculture: 12.6% industry: 35.7% services: 51.7% (1994)

Inflation rate - consumer price index: 311% (1996)

Labor force: total: 3.57 million (1996 est.) by occupation : industry 41%, agriculture 18%, other 41% (1992)

Unemployment rate: 12.5% (1996 est.)

Budget: revenues: $3 billion expenditures : $4.1 billion, including capital expenditures of $NA (1996 est.)

Industries: machine building and metal working, food processing, chemicals, textiles, construction materials, ferrous and nonferrous metals

Industrial production growth rate: -6.5% (1996 est.)

Electricity - capacity: 12.09 million kW (1994)

Electricity - production: 36.07 billion kWh (1994)

Electricity - consumption per capita: 4,491 kWh (1995 est.)

Agriculture - products: grain, oilseed, vegetables, fruits, tobacco; livestock

Exports: total value: $4.2 billion (f.o.b., 1996 est.) commodities : machinery and equipment 12.8%; agriculture and food 21.9%; textiles and apparel 14%; metals and ores 19.7%; chemicals 16.9%; minerals and fuels 9.3% (1995) partners: OECD 50.0% (EU 37.2%); CIS and Central and Eastern Europe 32.4%; Arab countries 5.8%; other 11.8% (1995)

Imports: total value: $4.1 billion (c.i.f., 1996 est.) commodities: fuels, minerals, and raw materials 30.1%; machinery and equipment 23.6%; textiles and apparel 11.6%; agricultural products 10.8%; metals and ores 6.8%; chemicals 12.3%; other 4.8% (1995) partners : OECD 45.5% (EU 38.1%); CIS and Central and Eastern European countries 41.1%; Arab countries 1.8%; other 11.6% (1995)

Debt - external: $9.3 billion (1996 est.)

Economic aid: NA

Currency: 1 lev (Lv) = 100 stotinki

Exchange rates: leva (Lv) per US$1 - 483.4 (1996), 70.7 (1995), 54.2 (1994), 27.1 (1993), 23.3 (1992)

Fiscal year: calendar year

@Bulgaria:Communications

Telephones: 2,773,293 (1993 est.)

Telephone system: almost two-thirds of the lines are residential; 67% of Sofia households have telephones (November 1988 est.) domestic: extensive but antiquated transmission system of coaxial cable and microwave radio relay; telephone service is available in most villages international : direct dialing to 36 countries; satellite earth stations - 1 Intersputnik (Atlantic Ocean Region); Intelsat available through a Greek earth station

Radio broadcast stations: AM 20, FM 15, shortwave 0

Radios: NA

Television broadcast stations: 29 (Russian repeater in Sofia 1)