History[ edit ] Beginning of the 20th century and until [ edit ] The first modern factory in Bulgaria was set up in Sliven in ; since then and especially after the s, the economy of Bulgaria as a whole was in a state of upswing, this being particularly felt in the early 20th century and especially in the s. During the s, the Bulgarian economy was described as an economy militarily bound to Germany. In the early s, as Germany began to lose the Second World War, the Bulgarian economy suffered a decline. During the Socialism era, Bulgarian economy continued to be industrialized, although free market trade substantially decreased, as private market initiatives became state-regulated.
Its location has given it a rather turbulent history but not so extreme as others in the Balkans.
The genetic and cultural origins of the Bulgarian people are largely but not exclusively Slavic. There is a small Turkish component of Bulgaria in several senses.
In the fourth century A. The Huns attacked and conquered much of eastern Europe. In the sixth century the Avars attacked the Bulgars, destroying one tribe and forcing the others to seek the protection of Turkish tribes in the area. There Turkic tribes organized into a confederation in the seventh century A.
The nature of the tribes is uncertain because the name Bulgar means, in the Turkish of the time, people of mixed race. During the seventh century the five Bulgar tribes took different historical paths: One tribe was absorbed by the Khazars in the Black Sea region One tribe was absorbed by the Avars One tribe migrated west and joined the Lombards in Italy A tribe under the leadership of Asparukh crossed the Dnieper River and settled in the eastern Bulkan peninsula.
In this tribe created the First Bulgarian Empire. Another tribe fled north to the confluence of the Volga and Kama Rivers and became known as the Volga Bulgars.
The Volga Bulgars were converted to Islam in In they were subdued by the Mongols. All of the Bulgar tribes except the one that migrated west to the Balkans disappeared from history. Hereafter Bulgar refers only to the Bulgars in the Balkans that ruled over a Slavic population.
Later this Bulgar ruling class assimilated the Slavic language and culture of their subjects. Two periods of Bulgarian Empire occurred. The Bulgars were able to gain political recognition from the Byzantine Empire in A.
From the east with their capital at Pliska the Bulgarians gained territory to the west as far the Adriatic Sea and as far north as Belgrade.
They also established control of coastal territory on the Black Sea and on the Aegean Sea. The high point of this first Bulgarian Empire was under Simeon who ruled from to Simeon expanded Bulgarian control at the expense of the Byzantine Empire until in he led his army too far into Byzantine territory and was defeated.
The Byzantine Empire regained control of what is now Bulgaria by the year This state existed within the suzerainty of the Byzantine Empire. In the Bulgarian Tsar Kaloian gained full independence of the Bulgarian state, which amounted to a second Bulgarian Empire.
Thereafter internal dissension and external threats led to losses of territory to Tatar raiders, Magyars and the Byzantines. Two new Bulgarian tsars regained some territory but a new, more overwhelming threat appeared. The centuries-long rise of the Ottoman Turks was beginning.
They were able to wrest control of territories from the Byzantine Empire but Constantinople itself resisted their onslaught until Long before the capture of Constantinople the Ottomans were capturing territories north of the Bosporus in the Balkans.
In the Ottomans captured Sofia.Balkanistica 11 () Economic Crisis and Reform in Bulgaria, Jonathan B. ·Wight University of Richmond and M. Louise Fox The World Bank, Washington, D.C. Economic growth remained strong in Bulgaria at % in the first half of but continued to decelerate.
Domestic demand reached a decade-long peak and remained the main driver of growth. Consumption was supported by a dynamic labor market, rising wages, and consumer credit. During the refusal of the UDF to participate in a government of the Bulgarian Socialist Party resulted in a political crisis which turned into an economic crisis.
Production in Bulgaria . Balkanistica 11 () Economic Crisis and Reform in Bulgaria, Jonathan B.
·Wight University of Richmond and M. Louise Fox The World Bank, Washington, D.C. Bulgarian plans to adopt the euro stalled in the wake of the euro-zone debt crisis that began in , but the country began discussions in to join the euro zone’s preliminary exchange-rate mechanism.
The global economic crisis hit Bulgaria in and its macroeconomic impact continued in Household income shocks have been experienced primarily through a contraction of the labour market. The most significant impacts have been concentrated among the most vulnerable and distributed unevenly across ethnic groups.