The Cost of Living in Bulgaria and the Economy

Prior to the current global turbulence, the Bulgarian economy was showing sustained growth and long term stability. Since the total collapse of the economy in 1996 due to lack of internal support and an unstable banking system, the Bulgarian economy has made slow and steady recovery.

From 1997 the GDP was growing at 4-5% a year and attracted substantial foreign investment. This reached a peak in 2007 when Bulgaria joined the EU with investments of 6 billion Euros. Bulgaria is classified as an ‘upper middle income country’ by the World Bank.

The unit of currency in Bulgaria is the Lev with plans to change to the Euro after 2010.

The labour force in Bulgaria is comprised of:

Agriculture 7%
Industry 36.3%
Services 56.6%
Unemployment stands at 6.51%

Inflation which was incredibly high has been steadily decreasing in the last couple of years. The main industries in Bulgaria are electricity, gas, water, food and tobacco, machinery and equipment, base metals and nuclear fuel. Expected to join the Euro zone after 2010, forecasters are predicting accelerated growth over the next few years due to social reforms.

Bulgaria has a uniform income tax of 10% for all. Corporate income tax is also 10%, the lowest in Europe. This provides a very attractive business climate for investors and could encourage growth in the future.

Some Examples of average prices for goods/products in Bulgaria

Electricity 0.10 euro/kwh
Water 0.50 euro/m3
Internet – LAN 15 euro/month
Telephone 4 euro/month, plus 90 euro one off payment
Fuel 0.7 euro/litre
Diesel 0.5 euro/litre
Gas 0.4 euro/litre
Dinner for 2 in a restaurant 10 euro
Bulgarian wine from 1-6 euro/bottle - 0.75ml

Bulgarian Food

Chicken 2.5 euro/kg
English bacon 4 euro/kg
Salami 1.6 euro/kg
Sirloin 7.39 euro/kg
Cheese 1.4 euro/kg
Milk 0.5 euro/litre
Olive’s 1.7 euro/kg
Mushrooms with sauce 2.4 euro/kg
Rice 0.4 euro/kg
Pasta 0.5 euro/kg
Jam 0.4 euro/kg
Coffee 0.4 – 5 euro/0.1kg
Bread 0.3 euro/0.8 kg
Whiskey 8 euro/litre

Daily goods for sale in Bulgaria

Deodorant 1.2 euro/50ml
Shower gel 1.2 euro/250ml
Soap 0.4 euro/0.1kg
Shampoo 1.5 euro/250ml
Toothpaste 0.5 euro/50ml
Washing powder 0.3 euro/0.5kg

Wages in Bulgaria