Flag description: three equal horizontal bands of white (top), green, and red; the national emblem formerly on the hoist side of the white stripe has been removed - it contained a rampant lion within a wreath of wheat ears below a red five-pointed star and above a ribbon bearing the dates 681 (first Bulgarian state established) and 1944 (liberation from Nazi control)
Economy
Economy - overview: One of the poorest countries of central Europe, Bulgaria has slowly continued the process of moving from its old command economy towards a market-oriented economy. Slow advancement on economic reforms pitched the economy into crisis in 1996, marked by a banking system in turmoil, a depreciating currency, inflation of 311% and contracting production and foreign trade. Foreign exchange reserves dwindled to extremely low levels ($518 million), while dramatically hiked interest rates added to the domestic debt burden and stifled growth. GDP fell by 10% in 1996, after experiencing 2.6% growth in 1995. Privatization of state-owned industries stagnated, although the first auction of a mass privatization program was undertaken in late 1996. Lagging progress on structural reforms led to postponement of IMF disbursements under a $580 million standby loan agreed to in July. In November 1996, the IMF proposed a currency board as Bulgaria's best chance to restore confidence in the lev, eliminate discretionary spending, and avoid hyperinflation. The government has pledged to sell some of the country's most attractive state assets to the highest foreign bidders in 1997. The Bulgarian economy is projected to have another year of negative growth (minus 5%), and inflation near 700% in 1997, assuming introduction of a currency board in July of 1997.
GDP: purchasing power parity - $39.9 billion (1996 est.)
GDP - real growth rate: -10% (1996 est.)
GDP - per capita: purchasing power parity - $4,630 (1996 est.)
GDP - composition by sector: agriculture: 12.6% industry: 35.7% services: 51.7% (1994)
Inflation rate - consumer price index: 311% (1996)
Labor force: total: 3.57 million (1996 est.) by occupation : industry 41%, agriculture 18%, other 41% (1992)
Unemployment rate: 12.5% (1996 est.)