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R E GI ONA L PR OFI L E S Indicators of Developmen T REGIONAL PROFILES IME indicators of development 2020 REGIONAL PROFILES INDICATORS OF DEVELOPMENT 2020 IME Institute for Market Economics Sofia 2020 The study is published with the support of the America for Bulgaria Foundation. © Adrian Nikolov, Zornitsa Slavova, Peter Ganev, authors, 2020 © Zelma Catalan, translator, 2020 © Vesela Dobrinova, Konstantin Jekov, cover, 2020 © Konstantin Jekov, layout, 2020 © Institute for Market Economics, 2020 ISSN 2738-7623 Edirors: Kaloyan Staykov, Latchezar Bogdanov, Svetla Kostadinova Institute for Market Economics 1142 Sofia, bul. „Patriarh Evtimii“ 10, fl. 2, tel.: (02) 952 62 66 www.ime.bg www.regionalprofiles.bg Table of Contents Preface 5 Razgrad District 65 Regional Profiles 2020: Ruse District 69 Indicators on the Eve of the Pandemic 7 Shumen District 73 ECONOMIC DEVELOPMENT 7 Silistra District 77 SOCIAL DEVELOPMENT 10 Sliven District 81 Blagoevgrad District 13 Smolyan District 85 Burgas District 17 Sofia (capital city) 89 Dobrich District 21 Sofia District 93 Gabrovo District 25 Stara Zagora District 97 Haskovo District 29 Targovishte District 101 Kardzhali District 33 Varna District 105 Kyustendil District 37 Lovech District 41 Veliko Tarnovo District 109 Montana District 45 Vidin District 113 Pazardzhik District 49 Vratsa District 117 Pernik District 53 Yambol District 121 Pleven District 57 Categories of Indicators 125 Plovdiv District 61 Appendix 137 Table of Contents 3 Abbreviations used AIP Access to Information Program APIA Access to Public Information Act BLL Bulgarian Language and Literature EU European Union EUMIS Information System for Management and Monitoring of EU Funds in Bulgaria FDI Foreign Direct Investment FTA Fixed Tangible Assets GAV Gross Added Value GCCA Geodesy, Cartography and Cadastre Agency GDP Gross Domestic Product GP general practitioner MES Ministry of Education and Science MI Ministry of Interior NEE National External Examination NRA National Revenue Agency NSI National Statistical Institute p. point(s) p.p. percentage point / percentage points RIA Road Infrastructure Agency SJC Supreme Judicial Council 4 Regional Profiles 2020 Preface or the ninth consecutive year the Institute for Market Economics presents the annual issue of Regional Profiles: Indicators of Development, the only almanac of its kind on regional develop- Fment in Bulgaria. The book, better known as The Regional Profiles, has now become an established trade mark of the IME. This year its scope comprises the social and economic conditions in the regions on the eve of the Covid-19 pandemic. The study is based on 64 indicators evaluating the economic and social environment in the country’s 28 districts. All data presented in it are also available at www.regionalprofiles.bg, the Institute’s specialized web page. Being organized around specific indicators allows data to be ob- served in their dynamics as well as to make comparisons between individual districts. Access to the most complete recent mass of statistical data at the regional level is thus facilitated. Thanks to the work of the institutions collecting and providing statistics, with each successive year, we have been able to include more relevant and wide-ranging statistics for each district’s socio-economic environment. In the present edition most data are for 2019. Exceptions are few in number and are limited to several indicators which get published with a delay of over a year: dis- trict figures on GDP per capita, those on salaries, and some indicators in investment, the environ- ment, infrastructure, and education. Where possible, for example, in fields such as administration, local taxes and fees, as well as matriculation exam results, analysis also rests on 2020 figures. This study can benefit national and local government, business and the media, as well as academics, experts and people in the non-governmental sector, in their work on regional develop- ment. We also believe that everyone could find something of interest on the performance of their own district in comparison with other districts in a variety of spheres of economic and social life. The IME team wishes to express their gratitude to the America for Bulgaria Foundation for their partnership and lasting support in preparing and publishing The Regional Profiles. We hope this year‘s edition will be once again interesting and beneficial to all readers. Enjoy reading it! The IME team Preface 5 Regional profiles 2020: Indicators on the Eve of the Pandemic ECONOMIC DEVELOPMENT The economic development in each of Bulgaria’s dis- Gross value added (GVA) per capita varied between tricts during 2020 was shaped by the impact of the nearly 29,000 BGN in Sofia (capital city) and under pandemic. The country entered the year of COVID-19 7,000 BGN in Silistra, Sliven and Vidin (Figure 1). The with very good economic indicators. A stable growth difference between Sofia (capital city) and the lowest of 3-4% between 2015 and 2019 had brought about ranking districts was four-fold, while across the country record employment rates, as well as stable salary in- (minus the capital city) it could be more than two-fold. creases in practically all of the country’s districts. There were differences in the districts’ economic pro- Gross added value in the country’s largest districts – files. Sofia (capital city) was dominated by the service Sofia (capital city), Plovdiv and Varna – rose by near- economy which generated 89% of the added value. ly 10% (2018 data). On the eve of the pandemic the The tourist focus of Varna and Burgas also entailed seri- processes of transformation of the country’s economy ous dominance of the services in these leading seaside were stimulated by the transformations in industry, districts, which accounted for a whole 71% of the value which moved in a direction towards higher added added there. In terms of industry’s contributing share value, and by the growth of the digital sphere in the to the value added, the strongest industrial regions in largest economic centers. Bulgaria were Stara Zagora, Vratsa, Sofia and Gabrovo. Figure 1. Gross value added per capita by district in 2018 35,000 30,000 28,994 GVA in agriculture (BGN per capita) GVA in services (BGN per capita) 25,000 GVA in industry (BGN per capita) 20,000 14,978 15,000 13,574 13,540 13,422 13,022 11,715 11,395 10,913 10,205 9,189 10,000 9,048 8,665 8,442 8,419 8,406 8,370 8,148 8,051 7,989 7,957 7,937 7,833 7,626 7,410 7,346 6,873 6,590 6,095 5,000 0 Ruse Sofia Vidin Varna Sliven Vratsa Pernik Silistra Pleven Burgas Lovech Plovdiv Yambol Dobrich Razgrad Shumen Haskovo Gabrovo Smolyan Montana Kardzhali Kyustendil Pazardzhik Targovishte Blagoevgrad Stara Zagora Stara Veliko Tarnovo Veliko Sofia (capital city) National Average National Source: NSI, calculations by IME. Regional profiles 2020: Indicators on the Eve of the Pandemic 7 Figure 2. Employment rate of the population in 2019 In Stara Zagora and Vratsa this was due to the presence by district (%) of the largest energy companies, in Sofia – that of in- dustrial enterprises in its wider periphery, and in Ga- Montana 48.2 brovo – its traditional industrial profile. Vidin 56.5 The annual employment rate of the population aged 15-64 averaged over 70% in 2019 (Figure 2). In Sofia Silistra 58.2 (capital city) the employment rate rose slightly to Враца 59.8 reach 76.4%. The effect of the upsurge in and around Targovishte 60.1 the capital is visible in the data for the district of Sofia which registered record growth in employment over Razgrad 61.8 the previous three years to reach 77.7% in 2019. The Yambol 63.1 other district with very strong dynamics is Veliko Tar- novo, which reported the highest employment rate Pleven 63.2 in the whole country for 2019 – 78.7%. At the oppo- Kardzhali 63.7 site end are some of the poorer northern districts. The lowest employment rate in 2019 was registered Sliven 64.5 in Montana – 48.2%, with the district even marking a Smolyan 66.5 drop between 2017 and 2019. The employment rate remained low in Vidin (56.5%), Silistra (58.2%) and Shumen 66.6 Vratsa (59.8%). Dobrich 66.9 The unemployment rate of the population aged 15+ Lovech 67.0 during 2019 was below 5%. Among the various dis- tricts, however, unemployment varied from 2-3% in Kyustendil 67.6 Sofia (capital city), Plovdiv and Varna to around 20% Pazardzhik 69.1 in Vidin and Montana. In all of the country’s districts, however, unemployment rose in 2020 due to the pan- Burgas 69.4 demic and the enforced restrictions. Recovery of the Ruse 69.6 economic activity and the jobs lost in the pandemic Varna 69.6 is one of the major challenges facing the regions in the current year. The workforce profile will be the key National Average 70.1 factor both in the economic recovery and the pro- Gabrovo 70.1 cesses of transformation of the national economy. The districts with the better qualified workforce will Plovdiv 70.3 be better placed for a return to the pre-pandemic tra- Haskovo 70.9 jectory of growth and for moving towards a higher value-added economy (Figure 3). Pernik 70.9 Investment activity remains concentrated in the lead- Stara Zagora 74.7 ing economic centers. Thus, over 70% of cumulative Blagoevgrad 75.2 FDI and over 60% of FTA acquisition expenditure by non-financial enterprises have been recorded in So- Sofia 76.4 (capital city) fia (capital city), Plovdiv, Varna, and Burgas. Though Sofia 77.7 to a lesser extent, the districts of Sofia, Gabrovo and Veliko Stara Zagora were also well placed in terms of FDI. In 78.7 Tarnovo spite of the large differences, the so-called secondary 0 20 40 60 80 100 centers have also shown a strong dynamic trend over the past few years.
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