In 2022, the sector with the highest number of companies registered in Bulgaria is Services with 200,853 companies, followed by Retail Trade with 173,189 companies.
Industry and construction Much of Bulgaria's communist-era industry was heavy industry, although biochemicals and computers were significant products beginning in the 1980s. Because Bulgarian industry was configured to Soviet markets, the end of the Soviet Union and the Warsaw Pact caused a severe crisis in the 1990s. After showing its first growth since the communist era in 2000, Bulgaria's industrial sector has grown slowly but steadily in the early 2000s. The performance of individual manufacturing industries has been uneven, however. Food processing and tobacco processing suffered from the loss of Soviet markets and have not maintained standards high enough to compete in Western Europe. Textile processing generally has declined since the mid-1990s, although clothing exports have grown steadily since 2000. Only in recent years electronics and electric equipment production has regained higher levels. The largest centres include
Sofia,
Plovdiv and the surrounding area,
Botevgrad,
Stara Zagora,
Varna,
Pravets and many other cities.
Household appliances,
computers,
CDs,
telephones,
medical and scientific equipment are being produced. In 2008, the
electronics industry shipped more than $260 million in exports, primarily of components, computers and consumer electronics. Many factories producing transportation equipment still do not operate at full capacity. Plants produce trains (
Burgas,
Dryanovo), trams (
Sofia),
trolleys (
Dupnitsa), buses (
Botevgrad), trucks (
Shumen),
motor trucks (Plovdiv,
Lom, Sofia, Lovech). Lovech has an automotive assembly plant.
Rousse serves as the main centre for agricultural machinery. Bulgarian arms production mainly operates in central Bulgaria (
Kazanlak,
Sopot,
Karlovo). Construction output fell dramatically in the 1990s as industrial and housing construction declined, but a recovery began in the early 2000s. The sector, now dominated by private firms, has resumed the foreign building programs that led to prosperity in the communist era. The Glavbolgarstroy firm has major building projects in Kazakhstan, Russia, and Ukraine as well as domestic contracts. One of the biggest Romanian investments in Bulgaria is in the construction/retail industry, namely the Budmax brand of construction supply stores (owned by
Arabesque).
Energy Bulgaria relies on imported oil and natural gas (most of which comes from
Russia), together with domestic generation of electricity from coal-powered and hydro plants, and the Kozloduy nuclear plant. Bulgaria imports 97% of its
natural gas from Russia. The economy remains energy-intensive because conservation practices have developed slowly. The country is a major regional electricity producer. Bulgaria produced 38.07 billion kWh of electricity in 2006 (in comparison,
Romania, which has a population nearly three times larger than Bulgaria, produced 51.7 billion kW·h Most of Bulgaria's conventional power stations will require large-scale modernization in the near future. Bulgaria has some 64 small hydroelectric plants, which together produce 19 percent of the country's power output. Despite that, there were attempts to restart the project. Belene, planned in the 1980s but then rejected, was revived by the safety controversy at Kozloduy. was completed on 3 June 2011. Bulgaria ranks as a minor oil producer (97th in the world) with a total production of 3,520 bbl/day. Prospectors discovered Bulgaria's first
oil field near
Tyulenovo in 1951.
Proved reserves amount to .
Natural gas production halted in the late 1990s. Proved reserves of natural gas amount to 5.663 bln. cu m. The
LUKOIL Neftochim oil refinery is Bulgaria's largest refining facility with annual revenues amounting to more than 4 billion leva (2 billion euro). have seen a steady increase in electricity production from renewable energy sources such as wind and solar power. Wind energy has large-scale prospects, with up to 3,400 MW of installed capacity potential. Bulgaria operates more than 70
wind turbines with a total capacity of 112.6 MW, and plans to increase their number nearly threefold to reach a total capacity of 300 MW in 2010. From 2010 to 2017, the import of waste for
energy production increased for almost five times. Since 2014, the
European Commission financed the installation of a plant for
cogeneration of heat and electricity from
refuse-derived fuel to be located in
Sofia. In 2017, the Bulgaria's Ministry of Environment and Waters reported to the
Basel convention that Bulgaria had imported "69,683 tonnes of waste for incineration in a form of RDF, SRF, pretreated mixed waste and mixed contaminated plastics." As of March 2021, the total amount of tons of waste annually imported is substantially unknown.
Services and tourism Although the contribution of services to gross domestic product (GDP) has more than doubled in the post-communist era, a substantial share of that growth has been in government services, and the qualitative level of services varies greatly. The Bulgarian banking system, which was weak in the first post-communist years, was fully reformed in the late 1990s, including stronger oversight from the National Bank of Bulgaria and gradual privatisation. In 2003, the banking system was fully privatised, and substantial consolidation began making the system more efficient in 2004. Several smaller banks grew substantially between 2004 and 2006. These processes increased public confidence in the banks. Although the system still requires consolidation, loan activity to individuals and businesses increased in the early 2000s. The insurance industry has grown rapidly since a market reform in 1997, with the help of foreign firms. An example is the Bulgarian Insurance Group (BIG), a pension-fund and insurance management company owned by the Dutch-Israeli TBI Holding Company and the European Bank for Reconstruction and Development (EBRD). The introduction of health and pension insurance plans has expanded the private insurance industry. A series of reform laws in the early 2000s enabled the Bulgarian Stock Exchange to begin regular operation. As of 2005, stock market activity was limited by lack of transparency, although the growth rate increased beginning in 2004. After a decline in the 1990s, in the 21st century the tourism industry has grown rapidly. In 2016 some 10 million foreigners visited Bulgaria, up from 4 million in 2004 and 2.3 million in 2000. This trend is based on a number of attractive destinations, low costs, and restoration of facilities. Most of the industry had been privatised by 2004. Infrastructure items such as recreation facilities and booking services require improvement. Development of Bulgaria's retail sales sector was slow until the early 2000s, when a large number of Western-style outlets began to appear, and Sofia developed as a retail center. By 2006, several major European retail chains had opened stores, and others planned to enter the Bulgarian market. Bulgaria has attracted considerable investment from foreigners buying property either for their own use or for investment. In 2006, more than 29% of property deals were signed by foreigners, more than half of whom were British citizens. Various companies, such as
Bulgarian Dreams, actively marketed Bulgarian properties to buyers overseas. In 2007 Bulgaria was visited by 5,200,000 tourists, ranking 39th in the world. Tourists from Greece, Romania and Germany account for 40% of visitors. Significant numbers of
British (+300,000),
Russian (+200,000),
Serbian (+150,000),
Polish (+130,000) and
Danish (+100,000) tourists also visit Bulgaria. Most of them are attracted by the varying and beautiful landscapes, well-preserved historical and cultural heritage, and the tranquility of rural and mountain areas. In Easter of 2018 it was reported that around 90% of tourists in Varna, one of Bulgaria's largest tourism locations, came from Romania. Main destinations include the capital
Sofia, coastal resorts Sunny Beach,
Albena,
Sozopol,
Sveti Vlas; winter resorts
Bansko,
Pamporovo,
Chepelare and
Borovetz.
Arbanasi and
Bozhentsi are rural tourist destinations with well-preserved ethnographic traditions. Other popular attractions are the 10th century
Rila Monastery and the 19th century
Euxinograd château.
Agriculture, forestry, and fishing In the communist era, Bulgaria's agriculture was heavily centralized, integrated with agriculture-related industries, and state-run. In the postcommunist era, the process of restoring agricultural land to private owners has been in a form that ensures productivity has been slow. Bank investment and insecurity in the land market contributed to slow development in the 1990s. By 2004 some 98 percent of the workforce and output of Bulgaria's agricultural sector was private, including a number of large private cooperative enterprises. A significant amount of food also is produced for direct consumption by non-farmers on small plots, which are an important support for parts of the population. In 2000 and 2003, droughts limited agricultural production, and floods had the same effect in 2005. Bulgaria's main field crops are wheat, corn, and barley. The main industrial crops are sugar beets, sunflowers, and tobacco. Tomatoes, cucumbers, and peppers are the most important vegetable exports. Production of apples and grapes, Bulgaria's largest fruit products, has decreased since the communist era, but the export of wine has increased significantly. The most important types of livestock are cattle, sheep, poultry, pigs, and buffaloes, and the main dairy products are yogurt, cow and sheep cheese. Bulgaria is the world's 13th largest
sheep milk producer and is the 15th largest producer of
tobacco and 13th largest producer of
raspberries in Europe. Specialized equipment amounts to some 25,000
tractors and 5,500
combine harvesters, with a fleet of light aircraft. near
Slivnitsa. About 43% of Bulgaria's land is arable. In 2004, an estimated one-third of Bulgaria's land mass was covered by forests, of which about 40 percent was conifers. Between 1980 and 2000, the forested area increased by 4.6 percent. In 2002 a total of 4,800 tons of timber was harvested, 44 percent of which was fuel wood and 20 percent, pulpwood. Although nominal state timber standards are very strict, in 2004 an estimated 45 percent of Bulgaria's timber harvest was logged illegally because of corruption in the forest service. Some 7.5 percent of forests are protected from all uses, and 65 percent are designated for ecological and commercial use. In 2005, about 70 percent of the total forest resource was rated economically viable. Production of the most important crops (according to the
Food and Agriculture Organization) in 2006 (in '000 tons) amounted to:
wheat 3301.9;
sunflower 1196.6;
maize 1587.8;
grapes 266.2;
tobacco 42.0;
tomatoes 213.0;
barley 546.3;
potatoes 386.1;
peppers 156.7;
cucumbers 61.5;
cherries 18.2;
watermelons 136.0;
cabbage 72.7;
apples 26.1;
plums 18.0;
strawberries 8.8.
Mining and minerals Bulgaria's mining industry has declined in the post-communist era. Many deposits have remained underdeveloped because of a lack of modern equipment and low funding. Mining has contributed less than 2 percent of GDP and engaged less than 3 percent of the workforce in the early 2000s. Bulgaria has the following estimated deposits of metallic minerals: 207 million tons of iron ore, 127 million tons of manganese ore, 936 million tons of copper ore, 238 million tons of chromium ore, and 150 million tons of gold ore. Several of Bulgaria's minerals are extracted commercially; 80 percent of mining is done by open-pit excavation. Iron extraction at Kremikovtsi and elsewhere is not sufficient to support the domestic steel industry, but copper, lead, and zinc deposits fully supply the nonferrous metallurgy industries. A British firm has exploratory gold mines at Dikanyite and Gornoseltsi, and a domestic copper and gold mine operates at Chelopech. About 50 nonmetallic minerals are present in significant amounts. Substantial amounts of uranium are present in the Rhodope Mountains, but no extraction has occurred in the last 10 years. and, along with related industries, employs 120,000 people. The rising global prices of
gold, lead and copper in 2010, as well as investments in
zinc and coal production, have boosted economic growth in the mining sector after the
Great Recession. As of 2010, Bulgaria ranks as the 19th largest
coal producer in the world, 9th largest
bismuth producer, 19th largest
copper producer, and the 26th largest
zinc producer. In Europe, the country ranks fourth in gold production and sixth in coal production. The "Elatsite" copper mine and reprocessing facility, built during
Vulko Chervenkov's rule, takes its place as one of the largest in South-Eastern Europe. It extracts 13 million tonnes of ore annually, producing about 42,000 tonnes of
copper, 1.6 tonnes of
gold and 5.5 tonnes of
silver. Ferrous
metallurgy has major importance. Much of the production of
steel and
pig iron takes place in
Kremikovtsi and
Stomana steel in
Pernik, with a third metallurgical base in
Debelt. In production of steel and steel products per capita the country heads the
Balkans. the fate of Kremikovtsi steel factories has come under debate because of serious pollution in the capital, Sofia. The largest refineries for
lead and
zinc operate in
Plovdiv,
Kardzhali and
Novi Iskar; for
copper in
Pirdop and
Eliseina (now defunct); for
aluminium in
Shumen. In production of many metals
per capita, such as zinc and iron, Bulgaria ranks first in
Eastern Europe.
Infrastructure railcar of the
Bulgarian State Railways. Bulgaria's largely antiquated rail transport system is gradually being modernized. Bulgaria's national road network has a total length of , of which are paved. The
motorways in Bulgaria, such as
Trakia,
Hemus,
Struma and
Maritsa, are being improved and elongated to a total length of as of November 2015. Railroads are a major mode of freight transportation, although highways carry a progressively larger share of freight. Sofia and Plovdiv are major air travel hubs, while Varna and Burgas are the principal maritime trade ports. Since 2000, a rapid increase in the number of Internet users has occurred – from 430,000 they grew to 1,545,100 in 2004, and 3.4 million (48% penetration rate) in 2010. In 2017, the Internet users in Bulgaria are 4.2 million people (59.8% penetration rate). Bulgaria had the 3rd fastest Average Broadband Internet Speed in the world, after Romania and South Korea, in 2011. In 2017, Bulgaria ranks 27th in the world in the Mean Download Speed chart with 17.54 Mbit/s, ranks 31st in the world in the Average Monthly Broadband Cost chart with $28.81, and holds the 18th position in the world in the Speed/Cost Ratio with as much as 0.61.
Science and technology In 2010, Bulgaria spent 0.25% of its GDP on scientific research, which represents one of the lowest scientific budgets in Europe. Chronic underinvestment in the sector since 1990 forced many scientific professionals to leave the country. As a result, Bulgaria's economy scores low in terms of innovation, competitiveness and high added value exports. Nevertheless, Bulgaria ranked 8th in the world in 2002 by total number of
ICT specialists, outperforming countries with far larger populations, and it operates the only supercomputer in the Balkan region, an IBM
Blue Gene/P, which entered service in September 2008. The
Bulgarian Academy of Sciences (BAS) is the leading scientific institution in the country and employs most of Bulgaria's researchers in its numerous branches. The principal areas of research and development are energy,
nanotechnology,
archaeology and medicine. Bulgaria has deployed its own experiments on various missions, such as the
RADOM-7 dosimeters on the
International Space Station and
Chandrayaan-1 and the space
greenhouse (a Bulgarian invention) on the
Mir space station. In 2011, the government announced plans to reboot the space program by producing a new microsatellite and joining the
European Space Agency. In June 2017, Bulgaria launched
BulgariaSat-1, its first
geostationary communications satellite.
BulgariaSat-1 is a geostationary communications satellite operated by
Bulgaria Sat and manufactured by
SSL, based on the space-proven
SSL 1300 satellite platform. BulgariaSat-1 is the first in the history of the country geostationary communications satellite at the Bulgarian orbital position, and it is designed to provide Direct-to-Home (DTH) television service and data communications services to the Balkans and other European regions. In this way, Bulgaria will be among other European countries with their satellites, namely Belarus, France, Greece, Italy, Luxembourg, Norway, Russia, Spain, Sweden, Turkey and the United Kingdom. Due to its large-scale computing technology exports to
COMECON states, in the 1980s Bulgaria became known as the
Silicon Valley of the
Eastern Bloc. ==Labour==