Optimism and caution

Bulgaria's government is expecting inflation to drop significantly this year as supply shocks ease, after a worrying rise at the beginning of 2008. Nonetheless, many of the current inflationary pressures will remain and Bulgaria's ability to address them is limited. Year-end inflation should slow to 6.9 per cent in 2008 after last year's spike to 12.5 per cent, Finance Minister Plamen Oresharski told the local

The feeling is mutual in Bulgaria

Matthew Youkee, Editorial manager for Bulgaria, Oxford Business Group

As mutual funds grow in popularity among Bulgarian retail investors, so do the options available to them. A 19 per cent rise in assets during August saw the total mutual fund market in Bulgaria surpass the billion lev mark. New funds are preparing to enter the market and on October 3, five new funds received the necessary licences from the local financial regulator to begin share offerings within a month.

The low-flat option in Bulgaria

In the last week of July the Bulgarian Government announced plans to introduce a flat tax on personal income in 2008. The Government said the new rate, which will be among the lowest in a region where flat taxes have become popular, will encourage foreign investment and help shrink the country's informal economy. Labour organisations, however, believe the new rate will, in fact, leave poorer sectors of the community

Support for Bulgaria's agriculture

The European Union is expected to provide billions of euro to assist the development of Bulgarian agriculture between 2007 and 2013. These funds are sorely needed by a sector that is currently battling with recent setbacks, reduced state funding and a number of new challenges brought on by EU accession. Speaking at the opening of the 15th international agricultural fair in Dobrich, executive director of the State