The role of agriculture in the Bulgarian economy

Emil Kalchev

Abstract: The article reveals the role and place of agriculture in the structure of Bulgarian economy on the basis of empirical economic analysis applied for the time slot covering the past four years. The analysis states that the agriculture occupied the third position regarding the relative shares of four main economic sectors in the gross domestic product (GDP) over this period. In particular, it ranked after services and industry being at the same time before construction. Nevertheless, the agriculture grew the fastest among the four main economic branches within the GDP, which clearly indicates for its growth potential, despite some structural problems, inclusively with regard to the subsidies’ for the sector. In the first half (H1) of 2016, data show, however, that agriculture operated below its potential in contrast to the services sector. On the other hand, in line with the general tendency of income restructuring within the gross value added (GVA), typical for the economy as a whole in H1 2016, compensations of employees in the agriculture rose stronger compared to the economy, while gross operating surplus of agricultural companies declined even faster.

Keywords: agricultural economics; GDP analysis; macro economy

Date published: 2017-09-13