GDP in billions dollars

Inflation

Positive inflation dynamics

During 2004, the major pro-inflationary factors were: excise tax increases, administrative prices increases and fuels prices dynamics

In 2003, average inflation was 2.3%, below the end-year inflation of 5.6%

In 2004, annual inflation in Bulgaria is 4 %. In March and June there was deflation

Source: European Commission, Deutsche Bank, National Statistics Institutes

Unemployment

Unemployment is still somewhat high (12.2% - end 2004), but in line with other converging economies, and now lower than Croatia, Poland and Slovakia

ØUnemployment rate on annual basis decreased by 4.5 percentage points in 2004 compared to the highs of 2000

The unemployment rate stepped down as a result mainly of the interplay of the labor market upswing in private sector and the implementation of the government’s active labor market measures underway. Hidden employment is widespread in the booming construction sector

Unemployment rate %

*At December 2004 the unemployment rate was 12.2%

Foreign Direct Investment

Strategic investors drive FDI up by 50% to 100%

                                  FDI inflow in Bulgaria 1995-2004F, USD m

Trade Balance in billions dollars

Credit Ratings

Since late 2001 the international credit rating agencies have affirmed the economic progress and foreign policy achievements of Bulgaria through several rating upgrades
Bulgaria received for the first time an investment rating on June 24, 2004 by Standard & Poor’s and on August 4, 2004 by Fitch