Bulgarian Market Economics Institute’s annual study 2024 published: highlights

The Institute for Market Economy (IMI) publishes its annual report “Regional Profiles 2024”, which carefully examines the economic and social indicators of 28 regions of the Republic of Bulgaria. Based on more than 80 criteria, the report highlights the achievements of individual regions as well as highlighting growing disparities between regions.

Economic growth and regional differences

Bulgaria’s economy continues to grow. Although Sofia remains the key city with 41% of GDP, cities such as Plovdiv and Stara Zagora show impressive results.

Stara Zagora is supported by a strong industrial complex, especially the energy sector.

Plovdiv is actively developing thanks to the service sector, which forms over 60% of the regional GDP.

Agriculture maintains a leading position in less developed areas such as Silistra. The lack of uniform economic development leads to differences in the investment climate. Investments are most actively attracted in Sofia and the region, Plovdiv.

Labor market: progress and challenges

Despite the increase in employment, regional disparities remain noticeable.  

Sofia and Varna have the lowest unemployment rates.  

Vidin and Montana continue to experience a shortage of jobs.

Wages also vary widely, with average wages in the capital almost double those in some regions.

The influence of education on the development of the region

The report highlights the direct link between the educational level of the population and economic dynamics.  

Sofia leads with 54% of the population aged 25 to 64 with higher education.

A high level of qualification is also observed among the specialists in Varna and Plovdiv, which contributes to the technological progress of these cities.

On the opposite side of the ranking are Montana and Pazardzhik, where the low level of education limits the prospects for investments.  

Demographic and migration trends

Migration has a significant impact on the demographic picture of the country.  

Burgas and Varna are actively attracting new residents due to the development of tourism.

Vidin and Montana continue to lose population.

The largest share of the elderly population is in Vidin and Gabrovo, which creates an additional burden on the social sphere.  

Tourism as a restorative factor

The tourism sector surpassed 2019 levels, indicating a recovery from the crisis.  

Burgas, Varna and Dobrich are leading the recovery thanks to the popularity of sea tourism.

Recommendations for sustainable and equitable development

The report focuses on the need to eliminate regional disparities. Among the suggestions:  

• Raising the level of education and developing professional training.  
• Increasing the volume of investments in regions.  
• Support for small and medium-sized businesses, especially in rural areas.  
• Development of tourist infrastructure.

The implementation of these measures will help achieve sustainable economic growth and balance the development of the regions throughout Bulgaria.