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Bulgaria in Figures®, Edition

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Bulgaria in Figures®, Edition БЪЛГАРСКА ТЪРГОВСКО-ПРОМИШЛЕНА ПАЛАТА BULGARIAN CHAMBER OF COMMERCE AND INDUSTRY 125 години надежден партньор BULGARIA IN FIGURES® 11th edition 125 years reliable partner 2020 The brochure has been compiled by courtesy of: National Statistical Institute, Bulgarian National Bank and InvestBulgaria Agency. 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: Ltd. Vezni [email protected]: at the time it went to press, June 2020. Bulgaria in figures® – 11th edition Dear business partners, For more than a decade the Bulgarian Chamber of Commerce and Industry (BCCI) has been publishing the brochure “Bulgaria in Figures” which reports on Bulgaria’s position in international rankings and presents the main economic indicators of our economy. At the end of last year, the Bulgarian business had traditionally positive expectations for 2020, but the pandemic outbreak requires readjustment of expectations and Bulgarian entrepreneurs must quickly adapt to the new conditions. In the shortest terms BCCI gathered information from its partners around the world and proposed a series of measures. A significant part of them were adopted by the Bulgarian government, which acted adequately not only to limit the spread of the virus, but also took measures to help surmount the difficulties incurred by businesses and citizens. We will be adding new measures on a regular basis and expect further steps to be taken to overcome the negative effects on the national economy and human capital. The huge challenge of the pandemic has necessitated a rapid change in the attitude and the pace of digitalization in all spheres of life: both of the administration – for example, the education system, and of the business community, which has long been encouraged by BCCI in this regard, but now, in order to survive, has to focus its efforts on digitalization and change in the business models. In these difficult days BCCI has not stopped providing services to the business community for a moment and will continue to work actively to mitigate the impact of the pandemic and help the faster recovery of the Bulgarian economy to its pre-crisis levels of competitiveness and growth of companies. The period coincides with the 125th anniversary of the establishment of the system of chambers of commerce and industry in Bulgaria, which is another additional responsibility and stimulus for us to be effective and helpful. Contributing with this publication to a clearer picture of the situation in Bulgaria we hope on the one hand that the Bulgarian and EU institutions will take measures in the right direction, and on the other hand wish to encourage informed decision-making in favour of future investments in the country by Bulgarian and foreign companies. We highly value the opinion, experience and advice of our partners and members so that we can be of maximum use for achieving the high goals we have set for ourselves. I hope that we can carry out joint projects, events and surveys, and to this end you can contact us at the following e-mail: office@bcci. bg. With the ambition to continue to be a trusted data source to you I remain, Yours sincerely, Tsvetan Simeonov BCCI's President 1 Bulgaria in figures® – 11th edition 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 Pernik Sliven 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 Area: 111 001.9 sq.km. Administrative and territorial division: 28 districts and 265 municipalities, 6 regions Population: 6 951 482 persons as of 31.12.2019 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® – 11th edition Facts about Bulgaria EU, NATO and WTO Membership Strategic geographical location and openness to foreign markets: crossroad between Europe, Asia and Africa Stability in financial environment: Bulgaria’s debt is the second lowest in the EU 27 (20.4% of GDP) as of 2019 Business-friendly environment: Simple and low taxation Competitive operational costs and competitive labour level Main indicators – actual data 2015 2016 2017 2018 2019 GDP (mill. EUR) 45 675 48 620 52 309 56 086 60 674 GDP real growth rate (%) 4,0 3,8 3,5 3,1 3,4 Inflation (%) -0,4 0,1 2,8 2,7 3,8 Government deficit/ -1,7 0,1 1,1 2,0 2,1 surplus (% of GDP) Exports (mill. EUR) 22 982 24 126 27 916 28 648 29 856 Imports (mill. EUR) 26 357 26 181 30 286 32 169 33 303 Employment rate (%) 62,9 63,4 66,9 67,7 70,1 Unemployment rate (%) 9,1 7,6 6,2 5,2 4,2 Source: Eurostat, Bulgaria National Bank, National Statistical Institute Macroeconomic forecast 2019 2020 2021 Real Gross Domestic Product (% change) 3,4 -7,2 6,0 Total Investment (% change) 2,2 -18,0 1,0 Employment growth (%) 0,3 -2,5 0,5 Unemployment rate (%) 4,2 7,0 5,8 Consumer-price inflation (%) 2,5 1,1 1,1 General government balance (% of GDP) 2,1 -2,8 -1,8 General government gross debt (% of GDP) 20,4 25,5 25,4 Source: Spring 2020 Economic Forecast, European Commission 3 Bulgaria in figures® – 11th edition BULGARIA IN THE INTERNATIONAL RANKINGS Bulgaria has competitive positions in numerous international indices. According to the following rankings the country has the best performance in terms of business process outsourcing (BPO), low taxes and openness of budget procedure. For more information: https://www.bcci.bg/economic-analyses-en.html Bulgaria in international rankings Business process outsourcing and shared service location index 2016 7 35 Tax Misery & Reform Index 2009 7 67 Open budget index 2019 16 117 Global peace index 2019 26 163 The Digital Economy and Society Index (DESI) 2019 28 28 Environmental performance index 2018 30 180 EuroHealth Consumer Index 2018 31 35 Index of Globalization 2019 31 203 Index of Economic Freedom 2020 36 180 Economic Freedom of the World 2019 37 162 Global Innovation Index 2019 40 129 Best Countries for Business 2018 46 161 Democracy Index 2019 47 167 E–Government Development Index 2018 47 193 World Competitiveness 2019 48 63 The Global Gender Gap Rankings 2020 49 153 Prosperity Index 2019 49 167 Global competitiveness index 2019 49 141 Human Development Index 2019 52 189 Logistics performance Index 2018 52 160 Rule of law 2020 53 128 Country Attractiveness Index in the Venture Capital & Private Equity 2018 56 125 Doing Business 2020 61 190 International Property Index 2019 61 129 Corruption perceptions index 2019 74 180 Gross Domestic Product per capita 2018 87 228 World Press freedom index 2020 111 180 0 50 100 150 200 Bulgaria's rank Total number of ranked countries Source: Respective websites 4 Bulgaria in figures® – 11th edition FOCUS ON TAXATION Flat-tax system is introduced in Bulgaria - a single 10% rate applied on personal income and a 10% rate applied on corporate income (imposed respectively in 2008 and 2007). For more than 12 years Bulgaria has not changed the low rates of the direct taxes. Since 1999 the standard rate of value-added tax in Bulgaria has been set on 20%, with the exception of hotel services, where a reduced rate of 9% is applied. In the middle of 2020 Bulgaria decided to reduce the VAT until 2021 on 9% for some products and services (children’s goods, restaurant and catering services and books). In Bulgaria taxpayers are released from payment of corporate tax in regions with high unemployment rates. In 2019 about 2/3 of municipalities – 169 (of total 265 in Bulgaria) had 25% higher than the average rate of unemployment for the country and there is 0% corporate income tax. Unemployment by municipalities – 0% corporate tax in regions shown in orange Novo Selo Bregovo Vidin - Region center Boinitza Vidin Sitovo Silistra Lom - Municipality Tutrakan Kula Slivo Koinardja Gramada Pole Glavinitza Alfatar Krushari Makresh Lom Ruse Kubrat Dimovo Valchedrum Dulovo Kozlodui Belogradchik Zavet Tervel General Brusartzi Yakimovo Oryahovo Guliantzi Vyatovo Isperih Toshevo Ruzhentzi Medkovez Mizia Ivanovo Dobrich region Belene Borovo Hairedin Nikopol Kaolinovo Shabla Chuprene Tzar Kaloyan Boichinovtzi Dolna Tzenovo Samuil Nikola Dobrich Montana Iskar Mitropolia Dve Byala Razgrad Venetz Kozlevo Borovan Kneja Svishtov Mogili Balchik Chiprovtzi Slatina Opaka Krivodol Byala Vulchi Dol Kavarna Pleven Levski Loznitza Hitrino Novi Dolnu Polski Pazar Georgi Berkovitza Cherven Pordim Vratza Dabnik Trambesh Popovo Suvorovo Damianovo Bryag Vetrino Aksakovo Varshetz Shumen Letnitza Pavlikeni Strajitza Gorna Targovishte Kaspichan Devnya Varna Roman Lukovit Oryahovitza Lovech Suhindol Antonovo Veliki Beloslav Provadia Godech Mezdra Veliko Preslav Yablanitza Lyaskovetz Avren Ugarchin Omurtag Svoge Sevlievo Tarnovo Zlataritza Botevgrad Smyadovo Dragoman Pravetz Dryanovo Dalgopol Varbitza Dolni Chiflik Kostinbrod Sofia region Slivnitza Troyan Gabrovo Elena Kotel Etropole Teteven Ruen Byala Trun Tryavna Bojurishte Apriltzi Sungurlare Gorna Breznik Sofia-city Anton Malina Chelopech Nesebar Gurkovo Tvarditza Pomorie Zemen MirkovoZlatitzaPirdop Sopot Aitos Pernik Elin Pelin Pavel Kazanluk Sliven Chavdar Koprivshtitza Maglij
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