Emerging market: in Bulgaria.

Bulgaria is the last European Union newcomer together with Romania. Both joined EU last year. The country experiences huge real estate and properties boom.

Bulgaria is the poorest country in EU with 37% of average GDP. Services accounts for half of GDP, industry for quarter and agriculture for 5%. Economy performs still very well. Last GDP numbers show 7.1% growth for the first half of 2008. Good numbers come also from the labor market with the lowest unemployment rate (5.8%). CPI went down from record June high (14.7%) to 11.8%.




Main stock market index is called SOFIX and lost more than 60% in last 12 months. One year ago had P/E valuation 30 and now is about 10. Price/Book value (P/BV ratio) is now 2 vs. 6 year ago. Romanian market has similar direction. Main stock exchange index BET (Bucharest Exchange Trading) had P/E 23 and now is 8. P/BV ratio is 1.3 vs 3.2 year ago.