Economy
Real GDP growth (2001): 4.8%.
Inflation rate (2001): 7.4%.
Unemployment rate (2001): 17.5%.
Natural resources: Bauxite, copper, lead, zinc, coal and timber.
Official exchange rate: Lev per $1 U.S.--1.9 (Jan. 2003); 2.17 (2001 avg.)

Bulgaria Economy
Bulgaria's economy contracted dramatically after 1989 with the collapse of the COMECON system and the loss of the Soviet market, to which the Bulgarian economy had been closely tied. The standard of living fell by about 40%. In addition, UN sanctions against Yugoslavia and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged when GDP grew in 1994 for the first time since 1988, by 1.4% and then by 2.5% in 1995. Inflation, which surged in 1994 to 122%, fell to 32.9% in 1995. During 1996, however, the economy collapsed due to shortsighted economic reforms and an unstable and decapitalized banking system.

Under the leadership of former Prime Minister Ivan Kostov (UDF), who came to power in 1997, an ambitious set of reforms were launched, including introduction of a currency board regime, bringing growth and stability to the Bulgarian economy. Three-digit inflation in 1997 fell to 2.6% in 1999. GDP grew 3.5% in 1998, 2.4% in 1999, and due to an increase in investments and exports, the GDP rose to 5.8% in 2000.

In spite of the transition to a new government in July 2001, Bulgaria remains committed to the market reforms undertaken in 1997. The new government's economic team is young, energetic, and Western-trained. Recent measures introduced by Prime Minister Saxe-Coburg seek to reduce taxes, curtail corruption, and attract foreign investment. While economic forecasts for 2002 and 2003 predict continued growth in the Bulgarian economy, the government still faces high unemployment and low standards of living.
source: http://www.state.gov