This report provides estimates of thelevel poverty and changes in living conditions between 2003and 2007 in the new European Union (EU) member stateBulgaria. This report fills key gaps in the understanding ofthe state of welfare in Bulgaria and its future trends. Itprovides an assessment of changes in living standards since2003, a period of sustained robust growth and intensivereform efforts leading to successful EU accession, and thecurrent profile of the poor. The report quantifies the levelof deprivation and the gains in poverty reduction andoverall welfare improvements in different segments ofBulgaria's population. The study aims to support policydiscourse on poverty reduction and strengthening of socialprotection by providing a robust assessment of livingconditions among various individual, household, geographic,and socioeconomic groups and of the actual and likely futureeffectiveness of current poverty reduction policies. Thereport is organized as follows. Section two examines welfaretrends between 2003 and 2007, decomposes changes in poverty,and links poverty outcomes to growth. In section three, thepoverty profile is presented based on the results of the2007 Multitopic Household Survey (MTHS) data. Correlates anddeterminants of consumption expenditures are presented insection four. Annex A provides a detailed account of theconcept of poverty and the methodology used for measuringpoverty in this report. Annex B presents supplementary data.
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