Country and Sector Background Agriculture in the Bulgarian Economy Agriculture continues to be an important sector in the Bulgarian economy. During the economy-wide decline since 1991 the significance of agriculture has increased in two ways. First, in contrast to the rest of the economy, agriculture grew by 30 percent. Second, agriculture has served as a safety net to absorb some of the labor that has been released from other sectors.
Agriculture also is the dominant activity in the rural household economy.
Agricultural production is a very important part of total household income, comprising about one-half of total income on average. In Bulgaria, rural poverty is extensive, with the incidence of rural poverty about twice as high as in urban areas. Poverty reduction in the country as a whole thus requires a substantial emphasis on poverty reduction in rural areas. This in turn depends on progress in generating broad-based agricultural growth, as at least one component of a poverty reduction strategy. Agriculture has considerable potential in Bulgaria.