National Statistical Institute and Bulgarian National Bank
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The Booklet has been compiled by courtesy of: National Statistical Institute and Bulgarian National Bank. When using data from the Bulgarian Chamber of Commerce and Industry’s publication, the source of information must be cited obligatory. The information provided in this brochure was correct PREPRESS: Vezni Ltd. E-mail: [email protected] Ltd. E-mail: Vezni PREPRESS: at the time it went to press, June 2015. Dear business partners, On the eve of the 120th anniversary of the establishment of the chambers of commerce and industry in Bulgaria, it is my pleasure on behalf of the Bulgarian Chamber of Commerce and Industry to present to your attention this year’s edition of “Bulgaria in figures”. This time we are presenting an extended version of the brochure in which we have included Bulgaria’s position in the most important international rankings. The present sixth edition of the brochure contains information about the most important economic indicators of Bulgaria. As a member state of the European Union, Bulgaria is distinguished by its good macroeconomic stability, low public debt and low tax rates in the meantime. BCCI will support the Government’s efforts to reform key sectors, believing that this is the way to improve the business and investment environment and increase our country’s rating in international classifications. The Bulgarian Chamber of Commerce and Industry with its system of 28 regional chambers and 105 members - sectorial organizations is ready to assist all entrepreneurs seeking business opportunities in Bulgaria. More information about the services provided by BCCI is available in the end of the brochure or on our website. Hoping that you will find the information helpful, I remain Yours sincerely, Tsvetan Simeonov BCCI President Bulgaria in figures – 2015 edition 1 REPUBLIC OF BULGARIA North Central region North-West region North-East region Silistra Vidin Razgrad Dobrich Montana Pleven Ruse Vratsa Shumen Veliko Tarnovo Targovishte Varna Lovech Gabrovo So a (cap) Sliven Pernik So a Stara Zagora Burgas Plovdiv Kyustendil Yambol Pazardzhik Haskovo Blagoevgrad Smolyan South-East region Kardzhali South-West region South Central region General data State government: Parliamentary Republic Head of state: President Head of government: Prime-Minister Capital: Sofia Administrative and territorial division: 28 districts and 265 municipalities Area: 111 001.9 sq.km. Population: 7 202 198 persons as of 31.12.2014 Official language: Bulgarian Religion: Mostly Eastern Orthodox Christians National currency: LEV (BGN - fixed to the Euro, 1 EUR = 1.95583 BGN, since 1997) 2 Bulgaria in figures – 2015 edition Facts about Bulgaria а EU, NATO and WTO Membership а Strategic geographical location and openness to foreign markets: crossroad between Europe, Asia and Africa а Stability in financial environment: Bulgaria’s debt is the third lowest in the EU 28 (27.6% of GDP) as of 2014 а Business-friendly environment: Simple and low taxation а Competitive operational costs and competitive labour level Main macroeconomic indicators 2010 2011 2012 2013 2014 GDP (mill. EUR) 36 764 40 102 40 926 41 047 42 010 GDP real growth rate (%) 0.4 1.8 0.6 0.9 1.7 Inflation (%) 2.4 4.2 3.0 0.9 -1.4 Government deficit -3.2 -2.0 -0.7 -0.9 -2.8 (% of GDP) Exports (mill. EUR) 15 561 20 264 20 770 22 271 22 116 Imports (mill. EUR) 19 245 23 406 25 459 25 828 26 189 Employment rate (%) 59.7 58.4 58.8 59.5 61.0 Unemployment rate (%) 10.3 11.4 12.4 13.0 11.5 Source: Eurostat, Bulgarian National Bank, National Statistical Institute Forecast 2015 2016 2017 2018 GDP (mill. EUR) 42 734 43 983 45 632 47 283 GDP (real growth rate %) 1.4 1.7 2.3 2.1 Exports (real growth rate %) 2.8 3.1 3.4 3.6 Imports (real growth rate %) 3.6 4 4.4 4.4 Average inflation rate (%) -0.6 1.8 1.9 2 Unemployment rate (%) 10.8 10.2 9.4 9 Source: Ministry of Finance of the Republic of Bulgaria Bulgaria in figures – 2015 edition 3 BULGARIA IN THE INTERNATIONAL RANKINGS Bulgaria has competitive positions in the different international indices. According to the following rankings the country has the best performance in terms of low taxes, budget openness, gender equality, internet speed and peace. Position of Bulgaria in international rankings Tax Misery & Reform Index 2009 7 67 Open budget index 2012 17 100 The Global Gender Gap Rankings 2014 22 142 Net index explorer December 2014 25 195 EuroHealth Consumer Index 2013 30 36 Global peace index 2014 32 162 Doing Business 2015 38 189 Index of Globalization 2014 39 207 Economic Freedom of the World 2014 40 152 Environmental performance index 2014 41 178 Best Countries for Business 2014 42 145 Global Innovation Index 2014 44 143 Logistics performance Index 2014 47 160 Prosperity Index 2014 48 142 International Property Index 2014 50 97 Democracy Index 2013 53 167 Global competitiveness index 2014-2015 54 144 Index of Economic Freedom 2015 55 178 Country Attractiveness Index in the Venture Capital & Private Equity 2014 56 118 World Competitiveness 2014 56 60 Human Development Index 2014 58 185 Corruption perceptions index 2014 69 175 E–Government Development Index 2014 73 193 Freedom of the press 2014 78 197 050 100 150 200 250 Bulgaria's rank Total number of ranked countries Source: Respective websites 4 Bulgaria in figures – 2015 edition Focus on taxation Flat-tax system is introduced in Bulgaria - a single 10% rate applied on personal income since and a 10% rate applied on corporate income. Value-added tax in Bulgaria is a 20%, with the exception of hotel services, where a reduced rate of 9% is applied. In Bulgaria taxpayers are released from payment of corporate tax in regions with high unemployment rates. In 2014 more than 2/3 of municipalities 176 (of total 265 in Bulgaria) had 25% higher than the average rate of unemployment for the country and there is 0% corporate income tax. Bulgaria is the second least tax burdened country in the EU as of 2012: The overall tax-to-GDP ratio in Bulgaria is 27.9% for 2012, compared to an EU average of 39.4%. Top statutory income tax rates and standard VAT rates (2014), % Bulgaria 10.0 10.0 20.0 Lithuania 15.0 15.0 21.0 Romania 16.0 16.0 24.0 Latvia 24.0 15.0 21.0 Estonia 21.0 21.0 20.0 Czech Republic 22.0 19.0 21.0 Hungary 16.0 20.6 27.0 Cyprus 35.0 12.5 19.0 Slovak Republic 25.0 22.0 20.0 Poland 32.0 19.0 23.0 Ireland 48.0 12.5 23.0 United Kingdom 45.0 21.0 20.0 Luxembourg 43.6 29.2 15.0 Malta 35.0 35.0 18.0 Slovenia 50.0 17.0 22.0 Croatia 47.2 20.0 25.0 Greece 46.0 26.0 23.0 Austria 50.0 25.0 20.0 Germany 47.5 30.2 19.0 Netherlands 52.0 25.0 21.0 Finland 51.5 24.5 24.0 Italy 47.9 31.4 22.0 Spain 52.0 30.0 21.0 Sweden 56.6 22.0 25.0 Denmark 55.6 24.5 25.0 France 50.3 38.0 20.0 Belgium 53.7 34.0 21.0 Portugal 56.5 31.5 23.0 Tax on personal income Tax on corporate income VAT (standard rates) Source: Eurostat Bulgaria in figures – 2015 edition 5 GROSS DOMESTIC PRODUCT The stable macroeconomic environment and improving terms of business have been the main factors that determined the dynamic development of Bulgarian economy in last years. Since 2000 the country has experienced a fast economic growth. After a small contraction in 2009, the Bulgarian economy has started to recover. The economy has been growing steadily, with higher rates than the EU average. Economic growth is expected to pick up in 2015 about 1.4%. Real GDP growth rate 8 % change compared to 6 the previous year 4 2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -2 -4 -6 -8 European Union 28 Bulgaria Source: Eurostat Over the past five years the GDP per employed has grown. Factors of growth have been the decline in employment and the increase of Gross Value Added in the economy. GDP per employed current prices, EUR 12500 12 233 11 997 12000 11 910 11500 11 378 11000 10500 10 201 10000 9500 9000 2010 2011 2012* 2013* 2014* *Preliminary data Source: National Statistical Institute, Bulgarian Chamber of Commerce and Industry 6 Bulgaria in figures – 2015 edition Gross Domestic Product and Gross Value Added by economic sectors and economic activity groupings at the current year prices Million EUR Economic sectors and 2010 2011 2012 2013 2014* economic activity groupings Agriculture, forestry and 1 620 1 899 1 916 1 932 1 903 fishing Mining and quarrying; 6 613 8 301 8 507 8 184 8 508 manufacturing; electricity, gas, steam and air conditioning supply; water supply; sewerage, waste management and remediation activities Construction 2 209 2 177 2 090 1 690 1 736 Wholesale and retail 6 566 6 949 7 125 7 561 7 699 trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities Information and 1 763 1 885 1 815 1 989 2 014 communication Financial and insurance 2 603 2 957 2 739 2 541 2 791 activities Real estate activities 3 691 3 829 3 745 3 797 3 837 Professional, scientific 1 771 1 896 2 101 1 976 1 969 and technical activities; administrative and support service activities Public administration and 4 036 4 193 4 316 4 752 4 754 defence; compulsory social security; education; human health and social work activities Arts, entertainment 883 835 860 921 920 and recreation, repair of household goods and other services Total Economic 31 756 34 921 35 216 35 344 36 131 Adjustments (taxes less 5 008 5 182 5 710 5 704 5 879 subsidies on products ) Gross Domestic Product 36 764 40 102 40 926 41 047 42 010 * Preliminary data Source: National Statistical Institute, Bulgarian Chamber of Commerce and Industry Bulgaria in figures – 2015 edition 7 The sectors that reported the largest contribution to GDP in 2014 (share of 45%) were Mining, quarrying and manufacturing and Wholesale and retail trade.