12/2016 Assessing the Impact of the Global Financial Crisis on Bulgaria’s Economy from the Sector Perspective
The current paper represents a country-focused analysis on Bulgaria’s economic development before and after the global financial crisis. Bulgarian economy is highly vulnerable to the regional and global factors due to its strong dependence on export earnings and foreign investment, weak competitiveness on international markets, the absence of protection mechanisms, and the high degree of energy intensity of production. The study relies on objective data and analytical frameworks with a view to identify the economic sectors in Bulgaria affected mostly by the global financial crisis. By implementing a detailed sector analysis the specific industry developments in Bulgaria before and after the crisis are revealed. As key macroeconomic indicators in the paper are used the gross domestic product (GDP) generated in Bulgaria's economy and the gross value added (GVA) produced by specific industries. The use of GVA helps to understand the nature of industry specific performance and the structural imbalances in the country.