Editing Economy of Bulgaria (section)

===1990–2000===
Economic performance declined dramatically at the beginning of the 1990s after the disbandment of the [[Comecon]] system and the loss of the [[Soviet Union|Soviet]] and Comecon market, to which the country had been entirely tied. Also, as a result of political unrest with the first attempts to re-establish a democratic political system and free [[market economy]] the [[standard of living]] fell by about 40%, and only started to stabilize significantly after 1998 after the fall of [[Jean Videnov]]'s socialist government. It regained pre-1989 levels by June 2004.

First signs of recovery showed in 1994 when [[Gross domestic product|GDP]] grew by 1.4%. This progress continued with a 2.5% rise in 1995. Inflation, which surged to 122% in 1994, fell to normal rates of 32.9% in 1995. During 1996, however, the economy collapsed during Jean Videnov's government. That was due to the [[Bulgarian Socialist Party]]'s inability to introduce vital economic reforms and failure to set legislative standards for banking and financial institutions, thus forcing an unstable banking system. All this led to an inflation rate of 311%, and the collapse of the [[Bulgarian lev|lev]]. In the spring 1997, the pro-reform [[United Democratic Forces]] coalition came to power with its ambitious economic reform package. The reforms included introduction of a currency board regime, which was agreed to with the [[International Monetary Fund]] and the [[World Bank]], and allowed the economy to stabilize. The 2000s saw a steady pace of growth and budget surpluses, but shaky inflation.

Successful foreign direct investment and successive governments have demonstrated a commitment to economic reforms and responsible fiscal planning that have contributed greatly to the Bulgarian economy, with a historical growth rate average of 6% a year. [[Corruption in Bulgaria|Corruption]] in the public administration and a weak judiciary have continued to be long-term problems, with presence of organized crime remaining very high.<ref>{{Cite book|title=Financial Times World Desk Reference|publisher=Dorling Kindersley Publishing, Inc.|year=2011|location=London, UK}}</ref>

Although politicians were giving warranties that the [[Great Recession|late-2000s recession]] would not hit Bulgaria, the economy suffered a 5.5% GDP decline in that period. Unemployment rose for at least five-quarters bringing Bulgaria's worst recession since the early 1990s. Still, economic circumstances were not too severe when compared to the rest of [[Europe]]. Future prospects are tied to the country's increasingly important integration with the European Union member states.