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Regional Profiles Indicators of Development 2019 REGIONAL PROFILES INDICATORS OF DEVELOPMENT 2019 IME Institute for Market Economics Sofia 2019 The study is published with the support of the America for Bulgaria Foundation. © Adrian Nikolov, Peter Ganev, Petya Georgieva, Yavor Aleksiev, authors, 2019 © Ralitza Muharska, translator, 2019 © Vesela Dobrinova, Konstantin Jekov, cover, 2019 © Konstantin Jekov, layout, 2019 © Institute for Market Economics, 2019 ISBN 978-954-8624-??-? Edirors: Latchezar Bogdanov, Kaloyan Staykov Institute for Market Economics 1142 Sofia, bul. „Patriarh Evtimii“ 10, fl. 2, tel.: (02) 952 62 66 www.ime.bg www.regionalprofiles.bg Printing House „Simolini–94“ – Sofia Table of Contents Preface 5 Plovdiv District 61 Razgrad District 65 Regional Profiles 2019: Summary 7 Ruse District 69 ECONOMIC DEVELOPMENT 7 Shumen District 73 SOCIAL DEVELOPMENT 10 Silistra District 77 13 Blagoevgrad District Sliven District 81 Burgas District 17 Smolyan District 85 Dobrich District 21 Sofia (capital city) 89 Gabrovo District 25 Sofia District 93 Haskovo District 29 Stara Zagora District 97 Kardzhali District 33 Targovishte District 101 Kyustendil District 37 Varna District 105 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 Appendix 125 Table of Contents 3 Abbreviations used AIP Access to Information Program Foundation BLL Bulgarian Language and Literature FDI Foreign Direct Investment FTA Fixed Tangible Assets GDP Gross Domestic Product GH General Hospital MES Ministry of Education and Science NSI National Statistics Institute p.p. percentage point SJC Supreme Judicial Council 4 Regional Profiles 2019 Preface he Institute for Market Economics presents the eighth annual issue of Regional Profiles: In- dicators of Development, the only almanac of its kind on regional development in Bulgaria. TThe book, better known as The Regional Profiles, has now become an established trade mark of the IME. The study is based on 62 indicators evaluating the economic and social environment in the country’s 28 regions. All data presented in it are available at www.regionalprofiles.bg, the Insti- tute’s specialized web page. Being organized around specific indicators allows data to be ob- served in its dynamics as well as to make comparisons between individual regions. 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 succes- sive year, we have been able to include more relevant and wide-ranging statistics on each dis- trict’s socio-economic environment. In the present edition most data are for 2018. Exceptions are few in number and are limited to several indicators, which get published with a delay of over a year: district figures on GDP per capita, those on salaries, and some indicators in investment, the environment, infrastructure, and education. Where possible, for example, in fields such as admin- istration, local taxes and fees, as well as matriculation exam results, analysis also rests on 2019 figures. This study can benefit national and local government, business and the media, as well as aca- demics, 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 region in comparison with other regions 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 making 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 2019: Summary ECONOMIC DEVELOPMENT Between 2017 and 2019 the country went through a pe- ing to 30,295 BGN in 2017, while Stara Zagora, with riod of notable economic growth: real GDP growth was 17,550 BGN, took a second place way behind the first. over 3% during each of those three consecutive years, The district of Sofia ranked third with 15,527 BGN. It the population economic activity rate has risen, and has profited from being the periphery of the big center, unemployment rates in 2019 were significantly below hosting the capital’s industrial zones, and turning into 5%. Such positive developments have also been visible one of the fastest developing districts in the country at the level of individual districts: each one has shown in recent years. Among the remaining districts which some positive tendencies. In 2017 production value per had GDP per capita between 10 and 15,000 BGN are capita grew by almost 12%, and the districts with the Varna, Burgas, Plovdiv, and Ruse, as well as Gabrovo most significant increase were those neighboring the and Vratsa – districts with more visible industrial pro- capital city, namely, Pernik and the district of Sofia. files. In the lower part of the chart we can see Silistra Sofia (capital city) doubtlessly has remained the with 6,687 BGN and Sliven with 7,046 BGN, with Vi- wealthiest district with a GDP per capita amount- din and Kardzhali slightly above them with GDP per Figure 1. GDP and production value per capita in 2017 50,000 45,000 GDP per capita (BGN) 40,000 Production value per capita (BGN) 35,000 30,000 25,000 30,295 20,000 15,000 17,550 15,527 10,000 14,280 13,809 12,363 12,240 12,112 11,684 11,152 9,742 9,254 9,148 8,985 8,925 8,881 8,829 8,804 8,792 5,000 8,659 8,123 7,989 7,884 7,807 7,735 7,485 7,046 6,687 7,283 0 Ruse Sofia Vidin Varna Sliven Vratsa Pernik Silistra Pleven Burgas Lovech Plovdiv Yambol Dobrich Razgrad Shumen Haskovo Gabrovo Bulgaria Smolyan Montana Kardzhali Kyustendil Pazardzhik Targovishte Blagoevgrad Stara Zagora Stara Veliko Tarnovo Veliko Sofia (capital city) Source: NSI, calculations by IME Regional Profiles 2019: Summary 7 Figure 2. Employment and unemployment rates in 2018 capita below 7,500 BGN. The districts with weakest economies lag behind the large centers with twice 15.3 Montana 52 lower GDP figures and over four times lower GDP in 10.1 comparison with the capital (Figure 1). Vratsa 55 11.1 Regional differences can also be seen in the 2018 la- Razgrad 56 bor market statistics, where employment rates (age 3.4 Kardzhali 59 15–64) vary from over 75% in the capital to about 19.9 Vidin 59 52% in Montana – a difference of about 25 p.p. in 11.1 the country as a whole. Employment figures make Silistra 60 the lag in the North-Western region even more vis- 9.8 Lovech 61 ible, as Vidin and Vratsa have also registered em- 9.9 ployment rates below 60%. In addition, the region Sliven 61 8.3 has the greatest number of small municipalities Yambol 62 with dwindling population and exceptionally high 11.2 Targovishte 63 unemployment levels – over 25% according to the 4.7 National Employment Agency figures. Other regions Pazardzhik 64 with significant labor market problems tend to have 8.2 Pleven 64 a deteriorating workforce structure too: in Razgrad, 12.0 Kardzhali, Targovishte, Sliven, and Silistra over 30% Shumen 65 8.6 of the population aged 25–64 has primary or lower Dobrich 65 education. While in those districts there are two peo- 3.1 Haskovo 66 ple with primary or lower education for every person 4.4 with higher education, in most of the other districts Varna 66 the number of people with higher education exceeds Veliko 5.4 Tarnovo 67 that of the people with primary or lower education – 7.5 unlike the capital city where the ratio is 12 people Pernik 67 4.5 with higher education to one with primary or lower Gabrovo 67 education (Figure 3). 5.3 Burgas 67 Investment activity on district levels delineates very 3.6 Kyustendil 68 clearly the leading economic centers in the country. 5.3 Half of the cumulative FDI as of 2017 has been con- Bulgaria 68 centrated in the capital: 12.3 bn EUR, to which we 10.5 Smolyan 68 could add investment worth about 1.5 bn EUR in So- 5.2 fia district. The other big business centers, namely, Ruse 68 3.6 the districts of Burgas, Varna and Plovdiv, had 1.9 bn Plovdiv 70 EUR cumulative foreign investment each, followed 2.3 Stara Zagora 71 by Stara Zagora with 900 m EUR. There is a clearly 4.8 noticeable north – south division: practically, almost Blagoevgrad 71 all of the above-mentioned centers are located in 0.7 Sofia 73 the south and are connected with each other via the Sofia 2.1 Trakiya highway along the Sofia – Plovdiv – Stara (capital city) 76 Zagora – Burgas axis; Varna being the only center 0 20 40 60 80 100 north of the Balkan Range. Another positive example Unemployment rate Employment rate of investment in the north is provided by Gabrovo, of the population of the population though it should be noted that this is one of the aged 15–64 aged 15+ (%) (%) smallest districts in the country, and therefore less significant compared with the large investment cen- Source: NSI, calculations by IME ters in the south (Figure 4). 8 Regional Profiles 2019 10,000 Source: NSI, calculations by IME by NSI,calculations Source: 40 50 60 10 20 30 Figure 4. Foreign direct investment and fixed tangible assets expenditure in2017 assetsexpenditure tangible andfixed direct investment 4.Foreign Figure IME by NSI,calculations Source: structurein2018 ofthepopulation 3.Educational Figure 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 0 Sofia (capital city) 51.4 Sofia (capital city) 9,294 Varna 29.5 Sofia 6,287 Ruse 29.1 Burgas
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