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Accession to the EU in 2007 has been the major driver of change in Bulgaria of late, and the country is working to come on line with its new EU neighbours on the political and economic front. The country has seen consistent growth in foreign direct investment (FDI) over the past three years, and both the industrial segment and tourism look particularly strong. The banking sector also looks set to continue to enjoy good health, as the injection of EU funds into various programmes will require co-financing from banks. A tough agricultural season in the summer of 2007 led to rising prices and climbing inflation, though the government is confident that domestic measures aimed at boosting the supply side, as well as continued investment, will help cool off the economy in 2008.

Publisher: Oxford Business Group

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