The economy of Bulgaria functions on the principles of the free market, having a large private sector and a small, but strong^{[citation needed]} public sector. Bulgaria is an industrialised upper-middle-income country according to the World Bank with a gross national income per capita of US$ 6,280 in 2010. It has experienced rapid economic growth in recent years^[update], even though its income level remains one of the lowest within the EU with an average monthly wage of 752 leva (384 euro).

Since 2001, Bulgaria has managed to attract considerable amounts of Foreign Direct Investment (FDI). During the Financial crisis of 2007–2010, Bulgaria marked a decline in its economy of 5.5% in 2009, but quickly restored its positive growth to 0.2% in 2010, in contrast to other Balkan countries.

The currency of the country is the lev (plural leva), pegged to the euro at a rate of 1.95583 leva for 1 euro. The lev is the strongest and most stable currency in Eastern Europe. The strongest sectors are energy, mining, metallurgy, machine building, agriculture and tourism. Primary industrial exports are clothing, iron and steel, machinery and refined fuels. Low productivity and competitiveness on the European and world markets alike due to inadequate R&D funding and a lack of a clearly defined development policy remain a significant obstacle for foreign investment and economic growth.

Coordinates: 42°45′N 25°30′E / 42.75°N 25.5°E / 42.75; 25.5

Bulgaria ⁱ/bʌlˈɡɛəriə/ (Bulgarian: България, IPA: [bɤ̞ɫˈɡarijɐ]), is a country located in Southeastern Europe. It is bordered by Romania to the north, Serbia and the Macedonia to the west, Greece and Turkey to the south and the Black Sea to the east. With a territory of 110,994 square kilometres (42,855 sq mi), Bulgaria is Europe's 14th-largest country. Its location has made it a historical crossroad for various civilisations and as such it is the home of some of the earliest metalworking, religious and other cultural artifacts in the world.

Prehistoric cultures began developing on Bulgarian lands during the Neolithic period. Its ancient history was marked by the presence of the Thracians, and later by the Greeks and Romans. The emergence of a unified Bulgarian ethnicity and state dates back to the First Bulgarian Empire, which dominated most of the Balkans and functioned as a cultural hub for Slavic peoples during the Middle Ages. With the downfall of the Second Bulgarian Empire in 1396, its territories came under Ottoman rule for nearly five hundred years. The Russo-Turkish War of 1877–1878 resulted in the Third Bulgarian State, recognised in 1908. The following years saw several conflicts with its neighbours, which prompted Bulgaria to align with Germany in both World Wars. In 1946 it became a Communist republic with a single-party system until 1989, when the Communist Party allowed multi-party elections. After 1990 Bulgaria transitioned to democracy and a market-based economy.