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The regional development is one of the primary focuses of the IME in the country. Unique in its coverage and profundity, the “Regional profiles: indicators of development” has been published for more than ten years and has followed the economic and social developments in the fields, and the initiative “265 stories about economic” focuses on municipalities.

All data reveal that Sofia continues to be a major economic engine of the country. The capital city accounts for 40% of the Gross Domestic Product (GPD) and the same proportion of the total output produced by the country. The capital attracts more than a half of all domestic and foreign investments.

It is often required to exclude the data of the capital in some indicators for a better comparison of districts and municipalities, because of the capital strong development that significantly distorts the average values and does not allow to see another great municipalities or a factual reality for citizens and many businesses. For example, the Plovdiv district ranks second in GPD production , but its values are six times lower than those of the capital. When the country’s unemployment is low, it regularly means that there is virtually no unemployment in Sofia, while in other places, it could be high. The increase in country’s average wage could be the result of the capital’s large labour market growth, while rest of the regions might have small or no changes. When there are discussions about the ever-increasing role of high-tech industries in the country, it’s often forgotten that the industry is a considerable sector outside of the capital that makes primary prosperity and ensures employment and incomes.

What would happen to the average values of any basic economic indicators, if we were to exclude Sofia from the calculations?

A few clarifications: First, the regional statistics are published with a long delay, and the latest data for selected indicators are from 2021. Second,  the differences become even more striking in absolute terms. However, when considering the relative value of the indicators, weighted by population - economic development appears more realistically.

Gross Domestic Product (GPD)

The gross domestic product (GDP) in the capital was over BGN 59 billion in 2021, which represents 43% of the total value for the country.

The GDP per capita in Sofia (the capital) is BGN 45.2 thousand, which is more than twice as much as the second district - Stara Zagora, and about five times more than the last in this ranking - the districts of Haskovo and Silistra. Precisely because of the high GDP level of the capital, the average level of this indicator is so high (BGN 20.2 thousand per person) that only it is above it.

If we exclude Sofia from the accounts, the average GDP per capita in the other regions is BGN 14.3 thousand and eight regions would go "over the line" - Stara Zagora (20.2 thousand BGN), Sofia (19.3 thousand BGN), Varna (17.9 thousand BGN), Vratsa (17.8 thousand BGN), Gabrovo (16.5 thousand BGN), Burgas (15.8 thousand BGN), Plovdiv (BGN 15.5 thousand) and Ruse (BGN 15.1 thousand).

Produced output

The value of production in Sofia was close to BGN 81 billion in 2021, constituting 38% of the total production in the country.

The value of production in the capital is BGN 61.9 thousand per capita. The average value for the country is BGN 31.2 thousand per person and in four more regions the production is above it - Sofia (BGN 57.1 thousand), Stara Zagora (BGN 34.0 thousand), Plovdiv (BGN 32.3 thousand) and Ruse (BGN 32.1 thousand).

If we exclude Sofia from the calculations, the average value of the production in the rest of the country would be BGN 24.1 thousand per person, which would add three more districts "above the line" - Gabrovo (BGN 30.2 thousand), Vratsa (BGN 29.0 thousand) and Varna (BGN 26.7 thousand).

Expenditure on tangible fixed assets

The costs for the acquisition of tangible fixed assets in Sofia were over BGN 10 billion or 48% of the total costs for the entire economy of the country in 2021.

With average costs for TFA of BGN 3.1 thousand per person per population, only three regions in the country are above this value - the capital (BGN 7.8 thousand), Plovdiv (BGN 3.4 thousand) and Sofia (BGN 3.2 thousand).

If we take out Sofia from the accounts, the average costs for TFA in the country would be BGN 2.0 thousand per person and as many as twelve regions join the group "above the line" - Burgas, Varna, Stara Zagora, Ruse, Smolyan, Gabrovo, Pazardzhik , Pleven, Veliko Tarnovo, Yambol, Silistra and Razgrad.

Foreign direct investments (FDI)

Foreign direct investments (FDI) in the capital were close to 15 billion Euro with accumulation by the end of 2021 and were more than half of the total for all non-financial enterprises in Bulgaria.

The average FDI per capita for the country is 4.1 thousand Euro and only three regions are above this value - the capital (11.2 thousand Euro), Sofia (7.3 thousand Euro) and Burgas (5.6 thousand Euro).

Without the capital, the average value of FDI per capita would be 2.4 thousand Euro and six more regions would stand out above the average level - Stara Zagora, Gabrovo, Plovdiv, Varna, Targovishte and Kardjali.

The exclusion of Sofia from the accounts in no way changes or underestimates the economic and social development of the capital, but allows the good indicators of other areas to be highlighted. Thus, although they do not even reach the average values for the country, in this case it should be noted the strong economic development in the districts of Sofia and Stara Zagora, highly productive industry in Gabrovo and Vratsa, intensive business activity in Burgas and Ruse, attracted foreign investments in Plovdiv and Varna.