site.btaGermany Trade & Invest: Bulgaria Needs Public Investment in Infrastructure, Administration and Digitalization 

The SWOT Analysis Bulgaria: Low Wages, but Challenging Environment series, published by Germany Trade & Invest (GTAI), catalogues the strengths, weaknesses, opportunities and threats in the Bulgarian economy. It contains information on the economy, investments, EU funding and consumption in Bulgaria, said the German-Bulgarian chamber of commerce and industry.

Bulgaria needs to trigger public investment in infrastructure, administration and digitalization, and the rule of law needs to be strengthened.
Bulgaria benefits from the above-average integration of its economy into international value chains compared with the rest of Europe and scores highly as a location with comparatively favorable wage and non-wage costs. In 2021, the country with its population of around 7 million ranked 44th in Germany's ranking of global sales markets.

Companies continue to suffer from red tape. It is difficult to apply for project funding. By the end of November 2022, the absorption rate of EU funds was 67% which leaves 33%, or one-third, unused. For EU funds to support further private investment, the government must improve the political and legal framework.

Path into Eurozone Creates More Stability

A milestone was Bulgaria's entry into the euro waiting room, the Exchange Rate Mechanism (ERMII) in July 2020. ERMII ensures that a country's currency does not fluctuate excessively. To maintain this status, Bulgaria has reformed insolvency law, revised regulations for the management of state-owned enterprises, and set in place legislation against money laundering.

Bulgaria's prospect of joining the Schengen area promises to make supply chains easier. Bulgaria's transport companies expect to save up to 15 hours when crossing border points.