Capital City: Sofia
	It is %T:%M %A in Sofia

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Economic trends

In spite of change in governments, Bulgaria has remained committed to the market reforms started in 1997. This has stabilized the economy and lead to a sustained growth for several years now. In October 2002 the European Commission declared that Bulgaria had a "Functioning Market Economy." Bulgaria records a GDP growth rate of arround 6% each year, confirmed by the last IMF forecast. But inflation is rising (from 5% in 2005 to 8.2% 2007). After rising above 13% of GDP in 2006, the current-account deficit will gradually decline in 2007-08. Unemployment still remains high (more than 10%). Bulgaria’s more than one-third of the population lives under the poverty line which restricts the domestic demand.

Main branches of industry

Traditionally an agricultural country, Bulgaria is now considerably industrialised. The agricultural sector contributes around 9% to the GDP and employs nearly 20% of the active population. The country has skilled and cheap workforce. Industry still depends on heavy manufacturing sectors (metallurgical, chemical, machine building) developed during the socialist period. But the most dynamic sectors are textile, pharmaceutical, cosmetics, and now mobile telephony. Bulgaria's main mineral resources include bauxite, copper, lead, zinc, coal, brown coal (lignite), iron ore, and oil and natural gas. There are many mineral springs in the country.

International trade

Bulgaria joined the EU in January 2007. However, under a safeguard procedure the European Commission will monitor closely Bulgaria's progress and could exclude Bulgaria from some of the benefits of the single market if progress does not match with the promises made in membership talks. The top three trade partners (both for export and import) are: Italy, Germany and Turkey. Bulgaria mainly exports mineral fuels & oils, copper, apparel & clothing accessories, iron & steel and machinery. While as, it mainly imports mineral fuels & oils, machinery, vehicles, and electric & electronic equipment.