Sat, Nov 21 2009
Photo: Assen Tonev
Among European Union member states for which data are available for the second quarter of 2009, the highest annual increase in labour costs was in Bulgaria, at 15.5 per cent.
Jones Lang LaSalle report says Bulgaria is still the most favourable destination in central and Eastern Europe and it will remain to be so – being the cheapest one.
Salaries in Bulgaria and Romania have registered the biggest increase in the European Union in 2008, showed data by Eurostat, the EU's statistical office.
Strong public opposition to price hikes prompted Prime Minister Boiko Borissov to axe the Finance Ministry proposal to increase the excise duty on spirits, but MPs have put it back on the agenda.
Bulgaria’s Cabinet seeks to reverse recent changes in the telecommunications sector
Kremikovtzi’s prospects for a recovery plan appear increasingly distant
Bulgarians are getting the hang of debit and credit cards, MasterCard says
The two telecoms, both set up to challenge former fixed-line state monopoly BTC, will merge operations and expect to report 20 million euro in revenue and a gross profit of five million euro in 2010.
They increased so rapidly because they were so low to start with. I use to employ a man for about €3 a day in Romania.
If Bulgaria higher labor cost increases due to increased productivity and / or better quality of goods and services is the increase in wage costs justifiable. But since I was in Bulgaria, I know that this is not the case. I have never been in a country with such poor service feeling just Bulgaria, and they are investing in production efficiency is quite ossanolikt. Bulgaria will soon be the new Latvia. High wages high inflation, consumption on borrowed money.
Good News for the workers......Short Term
Next comes company overheads now higher than can cope, cheaper foreign imports, cheaper to produce in China, Factory closers down. Watch this space. As cost to produce becomes to high ALL companies look elsewhere for cheaper production, and inevitably end up in the Far East.......