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Business environment

Indicators evaluating the business environment in Bulgaria

Key Indicators /values for 2013/:
 Population /millions/

7,2

 GDP /US$ billions/

53,0

 GDP per capita /US$/

7 328,49

GDP /PPP/ as share /%/ of world total

0,12

Source: http://www.weforum.org/ – The Global Competitiveness Report 2014-2015

 

Main indicators characterizing the business environment in Bulgaria:
General Government Gross Debt

18,3% of GDP /value for 2013/

27,6% of GDP /value for 2014/

Corporate Income Tax

10%

Personal Income Tax

10%

Government Spending

38,7% of GDP /December of 2013/ *

* Fifth lowest value in EU / EU average – 49%

Source: http://ec.europa.eu/eurostat

Global Competitiveness Index /GCI/

For the period 2014-2015 Bulgaria occupies 54th  place in the world from total 144 countries involved.

Global Competitiveness Index

Score – 4,37 /period 2014-2015 edition/*

Score – 4,31 /period 2013-2014 edition/

Source: http://www.weforum.org/ – The Global Competitiveness Report 2014-2015

* The Global Competitiveness Report; values: Min – 2,79; Max – 5,70; Median – 3,61

Global Competitiveness Index score of Bulgaria /4,37/ is based on the following subindexes:

Rank / 144*

Subindex A: Basic requirements

Rank: 59 / Score: 4,7

1st pillar: Institutions

Rank: 112 / Score: 3,3

2nd pillar: Infrastructure

Rank: 74 / Score: 4,1

3rd pillar: Macroeconomic Environment

Rank: 36 / Score: 5,4

4th pillar: Health and primary education

Rank: 51 / Score: 6,0

* Place of Bulgaria from included total 144 countries

 

Rank / 144*

Subindex B: Efficiency enhancers

Rank: 52 / Score: 4,3

5th pillar: Higher education and training

Rank: 63 / Score: 4,5

6th pillar: Goods market efficiency

Rank: 63 / Score: 4,4

7th pillar: Labor market efficiency

Rank: 67 / Score: 4,2

8th pillar: Financial market development

Rank: 60 / Score: 4,2

9th pillar: Technological readiness

Rank: 41 / Score: 4,7

10th pillar: Market size

Rank: 63 / Score: 3,9

 

Rank / 144*

Subindex C: Innovation and sophistication factors

Rank: 106 / Score: 3,3

11th pillar: Business sophistication

Rank: 105 / Score: 3,6

12th pillar: Innovation

Rank: 105 / Score: 2,9

 

Bulgaria has best results in the area of “macroeconomic environment” /36th place/, “technological readiness” /41st place/ and “health and primary education” /51st place/.

Doing Business Rank /Economy Ranking by the World Bank Group/

Doing Business report evaluates the economies from 1 to 189 in terms of their ease of doing business.

 

  • Easy of Doing Business Rank of Bulgaria: 38th place /out of 189 economies/

The rankings covers the following 10 topics:

 

Topic

Rank

Starting a Business

49

Dealing with construction permits

101

Getting Electricity

125

Registering Property

57

Getting Credit

23

Protecting Minority Investors

14

Paying Taxes

89

Trading Across Borders

57

Enforcing Contracts

75

Resolving Insolvency

38

Doing Business 2015 data for Bulgaria

Source: http://www.doingbusiness.org/rankings

Bulgaria has best results in topics “Protecting Minority Investors” /14th place/, “Getting Credit” /23rd place/ and “Resolving Insolvency” /38th place/.

Economic Freedom of the World

  • Economic Freedom of Bulgaria – Summary Rating /Rank/:
  • Rank – 7,29 / Rating – 48th place out of 141 countries

Areas

Rating / Rank*

Size of Government

Rating: 7,0 / Rank: 44

Legal System and Property Rights

Rating: 4,8 / Rank: 81

Sound Money

Rating: 9,5 / Rank: 25

Freedom to Trade Internationally

Rating: 7,4 / Rank: 48

Regulations /average value for the following regulations: credit market, labor market and business regulations/

Rating: 7,7 / Rank: 13

* Place of Bulgaria out of 141 countries

Source: The Fraser Institute Report – http://www.freetheworld.com/ , Economic Freedom of the World 2014 Annual Report /values for 2012/

Index of Economic Freedom

  • Includes 10 areas of business environment which cover 3 main topics:
  • Bulgaria – 2015 Index of Economic Freedom
  • Category: Moderately Free /in the range between 69,9 and 60/
  • World Rank: 55 /in total 178 ranked countries/; Regional Rank: 26 /in Europe/
  • Score: 66,8 /World Average – 60,4; Europe Average – 67/

The overall score of Bulgaria in 2015 is 1,1 points better than 2014 due to improvements in investment freedom, freedom from corruption, and monetary freedom that outweigh declines in business freedom and labor freedom.

Rule of law

Score:

Property Rights

30,0

Freedom From Corruption

41,0

Limited government

Score:

Government Spending

64,5

Fiscal Freedom

91,0

Regulatory Efficiency

Score:

Business Freedom

68,5

Labor Freedom

76,6

Monetary Freedom

83,2

Open Markets

Score:

Trade Freedom

88,0

Investment Freedom

65,0

Financial Freedom

60,0

 

Level of Economic Freedom:

100-80 79,9-70 69,9-60 59,9-50 49,9-0 N/A

Source: http://www.heritage.org/index/ – Country Ranking by the Heritage Foundation in partnership with Wall Street Journal